Culture Assessment Essay

Culture can be defined as a set of learned beliefs, values, norms and materials goods shared by group people. It includes everything that an individual adopts from a group in the process of living from infancy to old age. In the U. S and anywhere in the world, culture guides the social interactions between members of a society and influences the personal beliefs and values that shape an individual perception of their own environment (William E. T and Joseph H. 2005). Generally, cultural variations in many societies are as a result of class, ancestral, and religion disparities. William kufuor a middle aged man from the neighborhood but who subscribes to different cultural from most of the inhabitants of Miami was selected for an interview. He was supposed to reveal his beliefs values and norms concerning many situations in the U. S. The selected person is 35 years of age and his parents are immigrants from western Africa who migrated to the U. S in the early 1950’s and settled in Miami. He is a married man and works as an assistance professor in Chicago state university. His spouse is from Hispanic community who are also not Native Americans. The couple is blessed with two beautiful children aged between 5 years and 8 years. Although William was born and brought up in the U. S, he seems to incline so much towards African culture than the American culture. Kufuor as he is well known confesses to be a Christian and goes to church every Sunday together with his wife and children. His beliefs are that there exists a supreme creature called God who created all of us that and who is provider of everything. William seems to be very concern about body contact and personal space between him and other people especially those of the opposite sex. During the interview session he did keep a distance between me and him and whenever I tried to move closer he looked so much surprised. William like most American keeps an open space in between himself and his conversation partner. When offering greetings, Kufuor makes sure that there is minimal body contact and is most of the time he is very comfortable with a simple handshake as opposed to a hug or a kiss unless one is a very close relative and who is of the same sex except his wife only. This was evidenced when he moved away and offered a offered a handshake instead when a tried to hug him. William was believed to be one of the alienated African American, who may have discarded their ancestral beliefs and replaced them with the American beliefs. This was because he was born in America, grew, schooled and associated with Native Americans but after the interviews, it was against the expectations of the researcher since, he behaved like a typical African in his own country of origin. However, at home with his family the most used language was English, which was well spoken, written and conversed by all family members although William spoke fluent French. William said that it was because his wife was from a different culture which was Hispanic and that she was only fluent in English made them use English as the only language at home. William kufuor also takes the father and husband role and provides for everything to the family members, this did not mean that the wife did not contribute towards the family income. At home however unlike many Africans, William could cook for the family and perform many household chores that demanded his attention but mostly it was the wife who performed those household chores. When asked why he was liberal on issue concerning household chores since most people of the African culture believed that the kitchen was a place meant for women, William admitted that it was the country’s social structure that had influenced his way of doing things. He confessed that he had been influenced by his educational attainment, income and occupation. Thompson W. E and Joseph V. H (2005), Adams, J. Q. ; Pearlie S. A (2001) agree with Kufuor that it is not possible to understand people’s behaviour without assessing their social class since the social position possesses a great influence on almost all our feelings. They further agree that one’s religious beliefs are influenced by the social class, political affiliation, the foods he/she eats, clothes worn and associations. Kufuor beliefs that most of the diseases that are taking the lives of many in the world today are lifestyle related and are only avoided by behavioral change. He argues that the communicable and non communicable diseases are mainly as a result of unhealthy eating behaviors. However, the African culture upholds traditional medicines and concoctions which they belief are effective in the treatment of ailments than the modern medicine provided in hospitals. But kufuor admitted that he had deviated from those beliefs because of the education and exposure that he had acquired. The health care workers especially the nurses should treat people of this culture with a lot of love and care as well as emphasize with them so that they can change their perception towards healthcare facilities, since also these people prefer their indigenous foods as delicacies the nurses should provide them with the same but encourage them to diversify their intake so as to reduce the chances of getting deficiencies of some nutrients. The entire interview was lively since we communicated and understood each other very well using the American English. But however some necessary information was not revealed by interviewee this may be because he was not prepared well during the introduction so as to create a rapport end be able extract as much information as possible from the interviewee. Kufuor beliefs that most of the diseases that are causing havoc in the world today are as a result of what we eat, drink and think. He therefore argues that their solution not only lies in medication provided in the hospital but also in behavioral change among the affected. This involves minding what one eats and how he/she relates with the surrounding communities. Similary,kufuor feels that the hospital staff should also take a leading role in advising their clients both in-patient and out-patient about prevention measures of the common ailments. Reference: Thompson, William, Joseph hickey (2005). Society in focus. The culture of United States. Boston, M. A Pearson Adams, J. Q. ; Pearlie strother – Adams (2001): Dealing with diversity Chicago, LL Kendall/hunt publishing company.

Hamlet: The Controversy of Ophelia Essay

During the Elizabethan period women were not known to have important roles in society. They followed men and devoted their lives to their men . Women didn’t have much say or play significant roles in society. It was mandatory for them to obey a â€Å"dominant code of ethics that prescribed chaste, silent, and obedient Renaissance women† (Pebworth 76). This stereotype stayed consistent for hundreds of years to come and has carried on through different generations, reaching the point where it has become traditional. In Shakespeare’s play, Hamlet, his character Ophelia is a victim to this stereotype. Many feminist reading this play would disagree with or dislike the actions of Ophelia, stating that she is much weaker than the real character of a female. (Ophelia; a beautiful young woman who is regularly involved in conflicts but doesn’t know how to solve them or stand up for herself. ) She continuously turns to men for advice who basically control her life and alter her decisions. Shakespeare makes Ophelia consist of only one strong trait, her beauty. She lacks authority and self-respect because her male influences instruct her life and ultimately drive her insane which eventually leads to her suicide. â€Å"Throughout the play, Ophelia has her opinions and statements recast for her by other characters – namely, Laertes, Hamlet, and Polonius – who wish her to behave in a manner they deem appropriate. To mention just one example, upon hearing from Ophelia that Hamlet has been courting her, Polonius recasts Ophelia’s view of the relationship as one in which Hamlet ruthlessly exploits her naivete so that he may conquer her sexually,†(Peterson 24.) Strangely enough, her brother and father advise her about her relationship and without any consideration about her own feelings or opinion she follows their advice which is more so instruction. Laertes says, â€Å"Perhaps he loves you now and now no soil nor cautel doth besmirch the virtue of his will: but you must fear, his greatness weighed, his will is not his own†¦. ,† (I,III 14-17. ) Laertes harshly tells Ophelia to not have high expectations for Hamlet because his love will not last since he is at such a high position as Prince. Ophelia listens and obeys her brother. After Laertes leaves, Polonius talks to Ophelia about Prince Hamlet. â€Å"Set your entreatments at a higher rate than command to parle; for Lord Hamlet believe so much in him that he is young, and with a larger tether may he walk than may be given you: in few Ophelia, do not believe his vows, for they are brokers†¦ â€Å"(I,IV 123-127. ) Polonius also tells Ophelia to stay away from Hamlet, she replies; â€Å"I shall obey, my lord,†(I,IV 135. ) Her brother and father seem to form a dictatorship to control Ophelia’s life. She helplessly follows their commands. Hamlet is quite frustrated at the fact that Ophelia obeys her father. He makes the comparison of Gertrude marrying her dead husband’s brother and Ophelia choosing her father’s side instead of going with her instinct. He makes the conclusion that all women are defenseless and worthless. Later in the play, Ophelia suffers from Hamlet’s act of â€Å"antic disposition. † Hamlet verbally abuses her and severely hurts her emotionally. According to literary critic, Amanda Mabillard, Ophelia â€Å"is incapable of defending herself, but through her timid responses we clearly see her intense suffering. † Hamlet rudely claims that he never loved Ophelia. Hamlet: I did love you once. /Ophelia: Indeed, my, lord, you made me believe so. / Hamlet: You should not have believed me†¦ I loved you not. /Ophelia: I was the more deceived, (III, 1, 115-120. ) Not only does this hurt Ophelia emotionally but Hamlet’s act of insanity drastically confuses Ophelia. Polonius believes Hamlet is madly in love with Ophelia but Hamlet admits that he never loved her at all. â€Å"Another example concerns Hamlet’s false madness. Through it, he gives unrestrained vent to inward pain regarding moral corruption, regardless of the shattering effect of his words on his auditors. Indeed, Ophelia becomes the primary victim of such onslaught,† (Levy 53. ) Hamlet’s act of insanity contradicts the idea of him being in love with Ophelia. Now that Polonius’s assumption has been proven wrong, Ophelia has no one to turn to for advice. Since she was so accustomed from receiving advice from her brother and father she is lost and nearly clueless about what to do. Ophelia is driven to more confusion as her conversation with Hamlet proceeds; â€Å"Get thee to a nunnery, † why wouldst thou be a breeder of sinners? I am myself indifferent honest†¦ ,†(III, 1, 122-123.) After Hamlet tells Ophelia he never loved her and wants nothing to with her, he then tells her to go to a nunnery. In further meaning, he doesn’t want to be with her but he doesn’t want anybody else to have her. This indicates Hamlet’s true feelings for Ophelia which he is hiding through this act of insanity to side track the people who were told by Claudius to investigate this act. Such as Polonius, Claudius, Rosencrantz, and Guildenstern. This leaves Ophelia hurt and puzzled about the situation. At this point Ophelia doesn’t know what she wants nor what Hamlet wants. She has no idea why Hamlet’s behavior has changed so abruptly. Everything that was in her favor has reversed, causing a state of depression. Later in the play, Hamlet accidently kills Polonius mistaking him for King Claudius. Ophelia’s depression drastically increases, she is heartbroken, terrified, and distraught. The man she loves killed the man who was the main structure of her life. She is completely lost. The tension of these events begin to take a toll on Ophelia. Hamlet’s act of insanity actually creates a sense of insanity within Ophelia. It is clear to see that Hamlet had the most affect on Ophelia. Later she is enclosed in a padded room, she sings songs, rhymes, and riddles about death; â€Å"he is dead and gone lady, he is dead and gone, at his head a grass-green turf, at his heels stone. † (IV, 4, 37. ) Ophelia sings and shows signs of joyfulness as a way of mourning her father’s death, instead of being sad. Her madness is very apparent, she is very much insane, she can no longer cope with the rest of society. With no structure and a broken heart, her life goes through a drastic change. She goes from a normal lifestyle to a confused and emotionally damaged life. She then reaches the point of severe depression and insanity which causes her to enter a different state of mind. The character Ophelia never gains a true identity, she is influenced by the men in her life. The choices she makes reflect their desires. By them making her decisions and criticizing her actions she never actually gets the chance to live her life. She lives accordingly to the men. Later, Ophelia is found dead in a brook. Many will say that this proves her weakness of dealing with adversity. However, her suicide was ultimately caused by the males who she interacts with throughout the play. Their commands and actions cause stress and emotional pain which breaks down who Ophelia is as a person. Frankly she can no longer deal with these circumstances. She is not driven insane because of a weakness in females, Hamlet, Laertes, and Polonius destroy her life, slowly but surely. Works Cited Text: Roberts V. Edgar, and Jacobs V. Henry. Literature: An Introduction to Reading and Writing. New Jersey: Pearson Education Inc. , 2007 Electronic: â€Å"Hamlet: Ophelia’s Death. † Scribd. 11 March  http://www.scribd.com/doc/33947/Hamlet-Ophelias-Death

Explain the Decision Making Process with Example of Your Own

EXPLAIN THE DECISION MAKING PROCESS WITH EXAMPLE OF YOUR OWN. Introduction:- Decision making is an integral part of the most of the top manager's duties. Not even a single day passes without taking decisions particularly in modern organisations. Hence, management and decision ­ making are considered as inseparable. In fact, whatever a manager does, he can do it only by taking some decision. All matters related to planning, organization, staffing, directing and controlling are engrossed in decision making process. That is why it is aptly pointed out that management is essentially a decision-making process.The survival and future success of any enterprise is directly related to the ability to take timely and appropriate decision by the executives. Thus decision-making is said to be the heart of management. Lot of planning exercise is to be initiated by the manager before taking any viable decision. The manager has to carefully plan and decide what to do or what not to do. Wrong decis ions quite often are proved to be either costly or futile. To prevent such losses, decision-making process remains to be the core are in all planned activities of the modern corporations. The selection from among alternatives of a course of action†, according to this definition, picking one course of action among alternatives available is termed as decision-making as per Koontz and Weinrich. In the words of George Terry,†decision-making is the selection of a particular course of action, based on some criteria, from two or more possible alternatives. † We can define this concept also as the process of choosing between various alternatives for achieving a specified goal. Every decision must take into consideration needs and future uncertainties.As per Herbert Simon there are three major steps in the decision making process. Decision making is about choosing from several options or ideas and taking action to generate a particular result. It is usually considered to be a rational and logical thinking process. J>Recognition and understanding of the problem. J>Various alternatives may be developed. J>careful assessment of alternatives available for taking a better decisions. Characteristics J>Decision making is a continuous process. J>The question of decision-making process must always be rational when there are alternatives.J>A decision-making process must always be rational and purposeful. J>Decision making is an intellectual process supported by good reasoning and sound judgment. J>Decision making is all pervasive in the sense that all levels of managers need to take decisions of varied nature. J>Decision-making is always related to future only. Troes of Decisions: Managerial decision may be classified into two categories, the first category includes the typical, routine and unimportant decisions and the second category covers most important, vital and strategic decisions.Apart from decisions are taken at different levels for meeting different p roblems. Oraanisational Vs Personnel Decisions:- As explained by Chester. I. Bernard, the decisions taken by the manager in his official capacity are termed as Organisational decisions. These decisions have a direct bearing on the functioning of the firm. Decision relating to reward systems or transfer of workers can be cited as examples under this category. In contrast to this, some times, decisions may be taken by the manager in his individual capacity and such decisions are termed as personal decisions.They may partly affect the personal life and partly affect the organization. Example,decision to quit the organization comes under this category. Routine Vs Strategic Decision:- Routine decisions involve little risk and uncertainty. Hence, they do not call for extraordinary judgement and thinking. They are mostly related day-to-day conduct of the business and taken repetitively. That's why they are normally taken at lower levels of management. On the other hand strategic decisions are taken by the top level management. Either they are concerned with policy matters or with long-term commitments of the organization.They require thorough understanding, analysis and best judgement, pertaining to location of the plant, type of technology and channel of distribution are the best examples of this type. Policy Vs Operating Decisions:- Policy acts as guidelines for future action. Hence,decisions pertaining to policies are usually taken by the top management. They are considered to be very important since they affect the total organization. While operating decisions are administrative in character, they help in translating policies into action.Decisions relating to a new incentive scheme may be termed as a policy decision. Decisions relating to the methodology of implementation of such incentive scheme are termed as operating decisions. Programmed Vs Non-Programmed decisions:- Programmed decisions usually deals with routine and repetitive problems. For dealing such pro blems, systematic policies, procedures and rules are established. Programmed decisions can be taken with little ease as everything goes according to some set of rules. But Non-Programmed decisions cover mainly unexpected events and challenges.In other words, each problem is unique in nature. For dealing with such special problems, executives usually refer them to the top management, tackling such situations , the manager needs expertise,intuition and creative thinking. Individual Vs Group decisions:- Decisions taken by the individual in his personal capacity are known as individual decisions. Organisations which are small in size can accommodate this type of decision-making process. When organizations grow in size and stature, complex problems do come into picture.Group decisions are considered to be the best under such situations. Group decisions represent the thinking of more than one executive. The various steps involved in the decision-making process are as explained below:- Ste p 1 – Defining the oroblem The first step is to define the real problem, money and efforts are going to be wasted if the problem is not determined correctly. That' s why, accurate diagnosis of the real problem is necessary to find out right solution. We should look at the real causes and for the remedial measures by knowing the inner details of the problem.Knowing only the outer surface of the problem and arriving at decisions may lead to fallacious conclusions. SteP 2- AnalYSing the Problem Once the problem is clearly defined, then, it must be analysed in the light of data pertaining to various factors that surmount the decision. Every situation may have some advantages and limitations. Necessary steps should be laid on locating the limitations and obstacles in achieving the desired result. Necessary care should be exercised in avoiding personalized bias in judging the certain factors. Analysis of crucial factors provides a sound basis for making effective decisions.Step 3- Developing alternatives The analysis of the problem becomes complete once it throws light on several alternative solutions. In fact, the success of decision-making process depends upon the ability of an executive in developing alternative solutions to a given problem. This requires lot of imagination, experience and judgement. Exploring the positive or negative impact of such alternatives forms as a solid base for sound decisions. Step 4- Evaluating alternative Once the alternatives are developed , the next step is to evaluate them in terms of their cause, time , impact and objectives etc.Many a time, either marginal cost or cost-benefit analysis is used to bring out the tangible benefits of each of such alternatives. Each alternative solution may have its own merits and de-merits. They should be compared with other alternatives for the purpose of appraising the real impact. As per Mr. Peter F Drucker, the important criteria for evaluating the consequences of different alternatives are risk,economy, time and limitations. Steo 5- Selecting the best possible solution Selection usually involves choice making. It is the last step in decision-making process.The manager has to select such an alternative course of action which can make the maximum contribution to the goal. It is not always possible to select the best alternative for a given problem. That is why the manger has to rely upon such course of action which can yield good results under a given set of circumstances and limitations. Step 6- Imolementing the decision Once the best alternative is selected, it must be implemented. This step mainly deals with the execution of the decision taken. It involves development of step by step plans, selling the idea to sub-ordinates and seeking co-operation from the needy people.At this stage, the decision is converted into action. The decision must be implemented in the right time and that too in a proper way. Step 7- Evaluation of Decisions The last step in decision-mak ing process is evaluation. The actual results of the decision should be compared with the expected results in order to locate the reasons for deviations. This review is a continuous process and it generates information for necessary feedback for further improving the decision-making process in future. Rationality in decision-making Rationality refers to objective and intelligent action.A decision is said to be rational if appropriate means are chosen to accomplish desired objectives. It implies that decision-maker tries to maximize the values in a given situation by choosing the most suitable course of action. A good decision depends on the makers being consciously aware of the factors that set the stage for the decision. Obtaining complete rationality is not always possible. That is the reason why people prefer to take satisfactory decisions instead of ideal or optimum decisions. Managers are not always confronted by the problem of rationality in decision-making.In practice, they c onfine themselves to few important alternatives which have limited risks combined with favourable consequences. Limits of Rational Decision making Managers are not always rational in their decision-making. They cannot always abide by the demands of rationality in decision-making process. There are some limitations to that and of which are as explained below. Since decisions are related to future, Managers cannot foresee all the consequences accurately. Moreover, lack of complete knowledge about the problem also makes it impossible to choose a good decision.Due to time and cost constraints, all complex variables that have a bearing on decision cannot be examined fully. Hence, the decision maker is forced to strike a balance between complete rationality and hard realities on the ground. The impact of all the variables cannot be ascertained because some of them are intangible. The consequences of various alternatives cannot be anticipated accurately. Hence, decisions taken under uncert ainty cannot guarantee the success of decision-making process. The Human factors like value systems, perceptions, social factors, institution etc. are the main limits on rational decision-making. Managers, being human beings, are greatly influenced by their personal beliefs, attitudes and biases. Because of this, the capacity of a decision-making process varies from individual to individual and from situation to situation. Every manger is vitally concerned with the above limitations in his approach to rational decision-making. He has to collect all the relevant information and try to overcome the above limits on rationality and choose the most rational decision for solving any given problem. Ba†iers of Effective Decision MakingApart from the above limitations, decision-making process remains to be ineffective because of the existence of various barriers in organization structure. These barriers impede the process of identification of problems. It's analysis and the development of the solutions. The following are the important barriers that can block managerial effectiveness in choosing the most suitable decision as per Elbing. The tendency of a human-being to evaluate a given problem with pre-conceived notions, act as a stumbling block in understanding the real situation.Though it's dangerous, managers feel safer if they do not change what is familiar. Eventually, the ineffective decision of a familiar way becomes accepted rather than considering new and innovative means. Many managers fail to demarcate the symptoms from the main problem. Many mangers have a tendency to respond to the problem instantaneously without proper infonmation and thinking. If they gather more infonnation, they become rather than what is unique in new problem. The above problems are mainly responsible for either indecision or for half decision in the modern organizations.Knowledge of the above problems will surely help the managers in arriving at pragmatic decisions. The followin g suggestions can be offered to overcome the above barriers so as to make the managers more effective in decision-making process. Avoid premature evaluation. Initiate impartial probing by avoiding personal biases on the outcome. Develop a sound system that can supply adequate information for making decisions. Encourage group leaders to respond to a given situation and compare the pros and cons of the solutions offered by the two groups for making an effective decision.Encourage innovative thinking among the sub-ordinates so as to identify the crux of the problem without waste of time and money. When decisions of critical and pivotal in nature are to be taken, encourage group thinking. For this, the problem is to be presented to the sub-ordinates first and they are asked to develop as many solutions as possible in a free environment. Techniques of Decision -making Brainstorming:- Brainstorming is the oldest and widely followed technique for encouraging creative thinking. It was origi nally developed by A. F. Osbom. It involves the use of a group.This is an approach to improve problem discovery and solving by encouraging sub-ordinates to give their ideas and solutions in a free environment, they will generate creative ideas. Continuous interaction through free discussions may result in spontaneous and creative thinking. The larger the number of solutions , the fairer are the chances in locating an acceptable solution. The research proves that on hour brainstorming system is likely to generate 50 – 150 ideas. It is interesting to note that while most of them are proved to be impracticable, at least, some of them merit serious consideration.This group process is not without limitations. It continues lot of time and therefore,is an expensive exercise. Secondly,it emphasises only quantity of solutions which more often than not proved to be superficial. By overcoming the above limitations, a modern manager can use this an an effective tool. Some of the claimed advantages of the brainstorming technique include:-  » It reduces dependence on a single authority figure.  » It encourages the open sharing of ideas.  » It stimulates participation among group members. It provides individual safety in a competitive group.  » It maximizes output for a short period of time.  » It ensure a non evaluative climate.  » It tends to be enjoyable and stimulating. Synetics- When compared to Brainstorming, synectics is a new concept developed by William J. J. Gorden. The terms ‘Synectics' is derived from a Greek word which refers to â€Å"Fitting together of diverse elements†. It starts on the premise that this concept encourages novel thinking for the development of alternatives through putting together different ideas which are distinct from each other.A given problem is presented to a group of people with different backgrounds and varied experience. It is the responsibility of the group leader to present the problem and lead the di scussions in order to stimulate creative solutions. This approach ensures on the spot evaluation of members suggestions. The leader who is a technical expert is always assisting the group in evaluating the feasibility of their ideas. But experience shows that synectics has been less widely used than â€Å"Brainstorming†. When the problem is real tough and challenging, this approach is used for effective decision-making.Like Brainstorming it also suffers from the same range of limitations. The synectic techniwue includes the following steps:- Problem statement and background information stage:- The group leader describes the general area of discussion but avoids identifying the specific problem . Creative thinking on the problem is encouraged. The leader presents background information on the problem and the goals associated with the idea solutions. Good wishing stage:- Group members are encouraged to wish for anything that comes to mind that could address the problem.As in br ainstorming, in this â€Å"freewheeling stage† people are encouraged to generate wild ideas and to hitchhike. Exploring ideas and not evaluating them are of utmost importance at this stages. Excursion stage:- Paricipants are asked to forget about the specific problem. They are asked to generate ideas about a somewhat unrelated are that eventually might be related to the problem at hand. Forced-fit stage. Participants take ideas from the excursion stage and force them to fit the initial problem. Although this often appears quite unusual and obtuse, it is intended to encourage creativity.In fact,evidence suggests that many great thinkers develop ideas from such experimental thinking. Intemized response stage:- The group picks one of the ideas generated during the forced fit stage and pursues it further. The idea is dissected on only its positive aspects are identified. After all the positive aspects have been explored,the idea's limitations are addressed. This focus on the posi tive is intended to encourage productivity and creativity. The outcome of the synectic process is a single unique plan or decision that has undergone considerable evaluation.The process tends to produce innovative ideas. Synectic approach can be quite useful for creative planning and decision making. Its cost is high. Furthermore, it produces only one potential solution to a problem. If that solution turns out to be unusable,the problem remains, and the process has failed. The Nominal Group: The nominal group consists of people knowledgeable on the issue to be decided who are in the same physical location and who are aware of each other but who do not directly interact while they are working together.The specific techniques for using the nominal group in decision-making vary with the situation, but usually the following steps are involved. l> The manger brings the group together and outlines the problem. l>Each member of the group generates a number of ideas in writing. l>Each membe r then presents a single idea at a time to the entire group. The ideas are written on a blackboard or on large pieces of paper, and discussion of them is limited to clarification. When no further ideas merge, or when the manager feels the process has gone far enough, each member votes on the ideas, again in writing.The final decision is summed outcome of the individual votes, but the manager is free to accept or reject it. Ooerations Research:- The Origin and development of operations research is attributed to military operations and applications in 2†³Ã¢â‚¬  world war. The war put tremendous pressure on the use of available scarce resources for various strategic and tactical operations. The success of operations research in developing options of effective and efficient nature was instrumental in making this approach rather dependable in decision making process.Now-a-days, greater emphasis has been laid on the use of mathematical models to reflect different options and constra ints in a situation and their effect on a selected goal. This quantitative approach to decision-making is usually referred as â€Å"Operations Research†. Of late, it has become an invaluable tool in the kit of a decision-maker. Operations Research employs optimizing models like Linear Programming, Project Management,Inventory Control, Decision Theory and Waiting Line Theory.Operations Research is the systematic method of studying the basic structure, functions and relationships of an organization as an open system. It always adopts a systems approach to management in getting things done. It is constantly interested in developing optimal solution with limited resources in a given situation. It covers six steps in its approach to problem solving. They are: a. Identification of a problem. b. Construction of a mathematical model to investigate the problem. c. Developing a good solution. d. Testing of the model in the light, the data available. e.Identifying and setting up of cont rol points. f. Implementation of the option as a solution to a critical problem, putting a solution to work. In essence, Operations Research attempts to develop the best solution that will contribute to organizational goals. Limitations of Operation Research:- Operations Research technique is not †¢ panacea to all the problems of modern management. In other words, it is not the end. Since Operations Research does not take intangible aspects into consideration, subjective judgement becomes difficult under this model.As the Operations Research technique directly depends upon the use of mathematical and statistical tools,it is increasingly becoming complex and costly exercise. Since decision making is a human process,It cannot be predicted properly. At the same time, the impact of such factors cannot be measurable. Delphi Technique:- It is a technique normally used for forecasting future events. It is a group decision making technique. Under this method, independent opinions are s ought from the members repeatedly so as to develop a best solution to a given problem.The success of Delphi technique depends upon a simple technique of understanding the problem from the other man's perspective. This ensures success. Though it is a useful technique, since it involves time and cost,it can not be tried in all situations. At the operations level hundreds of de(isions are made in order to achieve local outcomes that contribute to the achievement of a company's overall strategic goal. However, all these decisions are interrelated and must be coordinated for the purpose of attaining the overall company goals. Many decisions-making situations occur under conditions of uncertainty.For example, the demand for a product may not be 100 units next week but may vary between 0 and 200 units, depending on the state of the market, which is uncertain. Decision analysis is a set of quantitative decision-making techniques to aid the decision maker in dealing with a decision situation in which there is uncertainty. However, the usefulness of decision analysis for decision making is also a beneficial topic to study because it reflects a structured, systematic approach to decision making that many decision makers follow intuitively without ever consciously thinking about it.Decision analysis represents not only a collection of decision-making techniques but also an analysis of logic underlying decision making. The general process of the Delphi technique follows: A panel of people who are knowledgeable about a particular problem is selected. The members of the group never actually meet. The panel can have members both inside and outside the organization, and the individual members may or may not know who the other members are. A questionnaire about the problem to be solved is sent to each members of the panel. Each person is asked to make anonymous suggestions.These suggestions are pooled, and a feedback report is developed. The feedback report and a more advanced, second stage questionnaire are sent back to the panel members. Each panel member independently evaluates the feedback report, votes on the priority of the ideas contained in it, and generates new ideas based on it. The process is repeated until a consensus is reached or until the manager feels that sufficient information has been received to make a decision. A final summary feedback report is developed and set back to the group members. A major advantage of the Delphi approach is its anonymity.In groups that interact face-to-face, one person may dominate, or everyone may watch the manager for clues to what is wanted. Further is interacting groups and individual may take a stand and not want to back down for fear of losing face. Frequently experts are more concerned with defending their position than with reaching a good decision. Electronic meetings: The most recent approach to group decision making blends the nominal group technique with sophisticated computer technology. It's cal led the electronic meeting. The major advantages of electronic meetings are anonymity, honestly and speed.Participants can anonymously type any message they want and it flashes on the screen for all to see at the push of a participant's board key. It also allows people to be brutally honest without penalty. And it's fast because chitchat is eliminated, discussions don't digress and many participants can â€Å"talk† at once without stepping on one another's toes. Experts claim that electronic meetings are as much as fifty five percent faster than traditional face to face meetings. Phelps Dodge Mining for instance, used the approach to cut its annual planning meeting from several days down to twelve hours.Yet there are drawbacks to this technique. Those who can type fast can outshine those who are verbally eloquent but lousy typists, those with the best ideas don't get credit for them, and the process lacks the information richness of face to face-to-face oral communication. Bu t although this technology is currently in its infancy, the future of group decision making is very likely to include extensive use of electronic meetings. Decision making without probabilities:- A decision making situation includes several components, the decision themselves and events that may occur in the future, known as states of nature.Future states of nature may be high or low demand for a product or good or bad economic conditions. At the time a decision is made, the decision maker is uncertain which state of nature will occur in the future and has no control over these states of nature. When the probabilities can be assigned to the occurrence of states of nature in the future, the situation is referred to as â€Å"decision making under risk†. When probabilities cannot be assigned to the occurrence of future events, the situation is called â€Å"decision making under uncertainty†.Each decision will result in an outcome or payoff, for each state of nature that w ill occur in the future. Payoffs are typically expressed in terms of profit, revenues, or cost. For example, if decision 1 is to expand a production facility and state of nature a is good economic conditions, payoff la could b e $100,000 in profit. Once the decision situation has been organized into a payoff table, several criteria are available to reflect how the decision maker arrives at a decision, including maximax, maximin, minimax regret, Hurwicz, and equal likelyhood.These criteria reflect different degrees of decision-maker conservatism or liberalism. On occasion they result in the same decision; however, they often yield different results. Different decision criteria often result in a mix of decisions. The criteria used and the resulting decisions depend on the decision maker. For example, the extremely optimistic decision maker might disregard the preceding results and make the decision to maintain the status quo, because the maximax criterion reflects his or her personal decision-making philosophy.

McDonald's Organizational Change Essay Example | Topics and Well Written Essays - 2000 words

McDonald's Organizational Change - Essay Example tariffs, export fees and even import quotas. There has been a reduced restriction on the movements of capital from one country to another together with investment. These changes has increased comparative advantages of various companies that are currently rushing to open up various branches in the world as it has become easy to manage them due to increased information flow and improved technology. One of the companies that have recorded tremendous changes over the past decade is MacDonald’s company. The company deals with fast foods a sector that faces a lot of competition as result of mushrooming of food vendors both small and huge companies. As a result there was a need to change the old management system in order to install new skills that have adequate knowledge concerning the current global market. There have been an increase in the number of multinational companies that deal with fast food e.g. KFC. This has necessitated a reshuffle in the top management in order to be ab le to diversify and increase skills required in retaining the company competitiveness. The company has looked for leaders who have the latest skills and experience concerning the latest market trends (Roch & Boivin, 2010). Initially, the company agitated for individual work so that one can have an individual performance appraisal. This was meant to ensure that the employees work harder for their work to be recognized during awarding of the most hardworking person. Due to the latest organizational changes, the management has instead preferred to change this working strategy to instill teamwork. This has worked in helping the organization deal with different challenges that may face the organization. This is because team members are able to come together and bring about different ideas that can solve the current challenge. Team groups in an organization have also made it easy for the management to manage the organization easily. This is because the management is able to appoint team l eaders who report to them. The major implication of this move is that it has enabled the company to diversify its operations as the management has the opportunity to monitor the performance of other branches that are spread in different parts of the world (Huber & Glick, 1995). Macdonald has seen a tremendous change in organization culture. A culture of an organization plays a great role in setting the performance of the organization in the market. One of the major changes has been on power distance. This is the extent to which less powerful employees of the organization are treated unequally by their leaders. Initially leaders in the organization kept a distance and never related with other employees. Instead they used an intermediary or when they meet they addressed the whole group as they had no time for a single person enquiry. This created a rift between the employees and leaders an aspect that reduced the morale of the workers in the organization. This also put a barrier to em ployees who wanted to report any issue that may have been affecting the organization performance or the relation of the employees with each other. The change that has been implementation is open office policy. This is a policy which encourages any members of staff to meet the management and leadership of the company in case there is an issue or enquiry that the management can solve. This change has been received with a lot of positive attitude from

Ornament in Architecture Essay Example | Topics and Well Written Essays - 750 words

Ornament in Architecture - Essay Example Ornament application is one means that may be applied to a building to increase its general outlook, but it may not be the only measure. Sullivan believes that a building without ornaments may be made to look beautiful by using other measures, but the application of ornament decoration may certainly add to its beauty value (Sullivan, 188). This paper seeks to explain the importance of ornaments in architecture and argue whether the entity adds a noticeable value or may be ignored. Ornaments in architecture The incorporation of ornaments in a building as part of its composition may add substantial value upon its perception as beautiful architecture. The careful selection of the mode of design applied matters to its overall composition as compared to the random placement of the ornaments in the structure. Sullivan quotes that both the structure and the ornament benefit from the careful placement of the entities as they strive towards achieving the goal of defining their overall purpose (Sullivan, 189). The careful application of the ornament on the structure should adhere to its structural composition. It should appear that the ornament decorating the building is incorporated as a composition towards the overall physical appearance rather that an addition forced later to improve its look. The ornament contributes significantly towards the total composition of the structure and adds to the beauty quality of the structure, making it a structural material and an additive. â€Å"They are no longer two things but one thing,† (Sullivan, 189). Not all ornaments would look appropriate in a structure. There are definite ornaments to be included in a particular architectural work, and they define the purpose properly if their use is carefully planned. It would look inappropriate and even destroy the beauty of the final architectural structure when little planning is incorporated towards the final composition. Each building possesses a set of ornaments that would app ear appropriate in highlighting the decorative aspect of the ornament. Current implications of ornaments that are successfully incorporated in the buildings are evident in America where buildings shine to give them a definite presentation. There is an overall function of making the building stand out from the surrounding structures, and involve a functional addition of explaining the structure especially if it is viewed for the first time. The picture that is normally instilled within an individual’s mind would involve the critic that revolves around the work of art, and the definition t possesses on the mind of the society. Simply put, the definition derived from an entity according to the majority would be upheld as the proper symbol that relates to the entity. In Loos’ book, Ornament and crime, he states that the tattoo among the Papuan tribe was a body decoration and an ornament applied to most of their necessities, but in the modern society, it is criminals that b ear the mark that are in tattoo form (Loos, 29). Objects that possess ornaments are cherished, but those without this additional entity are easily discarded and forgotten by the society (Loos, 30). He further gives the explanation that those objects in the dumpsters with ornaments are picked and cleaned to be displayed as valuable entities. However, Loos argues that individuals have learnt to overlook the concepts of beauty

Canadian Training Systems Essay Example | Topics and Well Written Essays - 1500 words

Canadian Training Systems - Essay Example h programs in the long run can be neglected in no respect and neither can the positive outcomes of training on the productivity and success of various other establishments in the market be kept unseen. I personally do believe that a meager 0.25% increment on payrolls of employees during training is inadequate and dissatisfactory, so as to keep them going and making them believe in their capabilities and the importance of what they learn during the training process. A 1% increment will to some extent, solve some if not all of the problems that these valuable gems of our organizational family face in their day to day lives. I have full confidence in the project and hope that it will bring success and fame, leading us to prosperity. returns to training investments in workplaces. The benefits from such investments in Germany and Japan have been remarkable and have encouraged other countries to follow suit. Workplace training since long has been a black box in terms of our human resource management system. The AET (adult education and training) and IAC (industrial assessment center) surveys carried out in most industries all over the country; reveal the importance and requirement of employee as well as employer training. Training can be categorized into formal and informal. The WTS (workplace training surveys) say that training in 75% of all establishments all over Canada is informal. The type of training that includes proper vision, pre-defined objectives, a structural format and a defined curriculum may be defined as the formal dimension of training. Informal training may include monitoring relationships, experimental learning and sharing knowledge among employees. These methods could be highly flexible, versatile and effective. However, with these, our statistical profile of training and its efficiency does still remain mostly incomplete. Training, more specifically the formal version, takes place in larger establishments and organizations rather than the smaller

Pros and Cons of Situational Leadership Theory Essay

Pros and Cons of Situational Leadership Theory - Essay Example The strengths of situational leadership theory are its current use in many organizations, practicality, and prescriptive approach. Situational leadership theory is appealing to many leadership/management practitioners because it is seen as common sense for leaders to be flexible and adaptable to different situational variables, especially the conditions and characteristics of their subordinates and workplaces (Schedlitzki & Edwards, 2014, p.53). In addition, this theory is practical because it can be easily explained and understood, it is intuitive, and it can be applied across diverse settings (Northouse, 2013, p.105). Moreover, this theory is also prescriptive, where it is clear on what leaders and subordinates should do and should not do (Northouse, 2013, p.105). Its guidelines are valuable in guiding situational leadership. Besides strengths, situational leadership theory has its weaknesses, namely its over-simplified description of the relationship between leader behaviors and situational variables and lack of empirical research that can support assumptions and propositions. Scholars criticize the vagueness of the relationship between leader behaviors and situational variables, specifically the lack of explanation of variations for each leadership behavior category and how they can impact situational factors (Northouse, 2013, p.107; Schedlitzki & Edwards, 2014, p.54). Furthermore, this theory lacks empirical support for its assumptions and prescriptions. There is lack of empirical testing on the theoretical basis of the theory and how it can affect performance variables and outcomes (Northouse, 2013, p.107; Schedlitzki & Edwards, 2014, p.54). Situational leadership theory is a practical, simple, and prescriptive theory that appeals to practitioners and trainers alike. However, it lacks further explanation of the

Criminal Evidence Law - Evidential and Legal Burden Essay

Criminal Evidence Law - Evidential and Legal Burden - Essay Example In this case, the prosecution has a duty to link the facts surrounding the two parties’ visit to the deceased’s house and to his eventual murder. The facts should prove on the balance of probabilities that actions of the accused may have caused the death. A fact-finder working with the prosecution would be tasked to collect the facts and link them to the crime. A jury would then have the final say on whether or not the murder case should proceed. The evidential burden in this case, which the jury will be tasked to determine is as follows: a) the accused visited Denzil’s house over an unsettled debt; b) William allegedly remained outside, possibly to scare people away within his imitation of a gun while Altin went in; c) Altin immediately attacked the victim; d) the victim died of the injuries sustained in the attack. In this case, there is no gap in the facts, which could have been prompted by a fall, for instance, on his way to the hospital1. Apart from the evidential burden, Article 6 of the European Convention on Human Rights (ECHR), providing for the right to the fair trial requires the prosecution to prove beyond the balance of probabilities that the actions of the two parties accused of Denzil’s murder have a legal basis. In this case, the prosecutor must prove that the alleged actions of Altin had a substantial cause on the Denzil’s death, but does not necessarily need to be the only or largely the cause of the death. This implies the two could be charged with the murder of Denzil if the prosecution established that his injury by the accused substantially contributed to his death whether or not he had underlying health conditions. A judge would be tasked to determine whether the legal burden can sustain trial. Altin would find it hard to prove that he was acting in self-defence because he intentionally went to Denzil’s place. In addition, the immediacy of the attack lends credence to a pre-planned murder whose time had come.  

Economics Essay Example | Topics and Well Written Essays - 500 words - 39

Economics - Essay Example As individuals continue to think that Netflix stands for a great compelling entertainment, the speed with which streaming movies adopt in general, and in particular, looks to be importantly slower compared to previous anticipation. To survive, Netflix should spend more on initial programming with an effort to draw closer more customers. The original investment will be of a positive effect in the long run. According to an article in the Wall Street Journal: In early January last year, after a disappointing Charismas season and amid worries about competition from discount retailers, Zale Corp. decided to shake things up: The self-proclaimed jeweller to Middle America was going to chase upscale customers†¦.The move was a disaster. The Irving, Texas, retailer lost many of its traditional customers without winning the new ones it coveted. (From Ann Zimmerman and Kris Hudson, â€Å"Chasing Upscale Customers Tarnishes Mass-Market Jeweller,† Wall Street Journal, June 26, 2006. P. A1. Why would a firm like Zale abandon one market niche for another market niche? We know that in this case the move was not successful. Can you think of other cases where the company successful changed its business strategy? Firms like Zale may move from one market niche to another market niche due to monopolistic competition. This is where by many firms compete in a market, there are no barriers to entries and products available in the market are differentiated. The weak economy and fierce competition led Zale to move to another market niche (Mihaljevic, 2013) The dry cleaning is indirectly practicing price discrimination as there exist a difference in cost involved in accomplishing the work. Besides, there is a big difference in price we are not aware of incase it is the real costs’ differences. As an economist I am not for support of law such as this as hair grooming, dry cleaning and laundry are jobs that can be

Game and Basketball Essay Example for Free

Game and Basketball Essay Basketball has been a part of my life since I was eleven years old. To me basketball isnt just a sport, but a stress relief from schoolwork and a place where I can just be myself. Anytime I start to feel the stress of school, my family problems or work, I always use basketball as my way of getting away. The moment I step out onto the court I feel refreshed. My mind warps into this place of peace and I feel like I can do anything. I even sometimes believe that basketball is in my blood. I play representative and domestic basketball. Representative is when a player is on a real team that has practices and a playbook, domestic is when your just playing around with your friends. I do find that playing representative is way more enjoyable. The fact that Im playing with guys of the same age as myself, that have the same interest as I do, and the fact that there all as serious about basketball as I am is pretty cool too. Training and preparing for my games one of the hardest parts of the game. To play basketball, you have to be in good shape. We run, non-stop, for some days, this keeps our fitness levels up to the standards expected of us. Honesty I dont mind that kind of pain because I know that my skills are improving form all the training that we do. On other days, trainings usually consist of skill drills and running through the strategic motion plays for out basketball games. Overall, I play because I LOVE the sport. The best part of the week is when I have games. When the final bell of school rings, I become exited about the game that I have been preparing so hard for. The best part of the season is the finals. Everyone is so exacted to be there. Being able to play in the finals and knowing that if you win you get a trophy is very motivating. Having your friends and family cheering for you on the court sides is also motivating as well (but also nerve ranking too). Every time you score a goal and hearing everyone roaring with excitement, is the most motivating thing when your out there on the court. Basketball has grown to be a tremendous piece of my life. I know that many people think that basketball is just a sport, but for me, its a way of living life. **Questions- Step 1: introduce yourself and let the coach know that your interested in the team. Step 2: describe your #1 strength as a player Step 3: wat do u hope to get out of your college experience **Answers- My name is Tyreek Wardlaw. I am African American weighing at one hundred and thirty pounds with a five foot six height. I am very interested in playing college basketball as i move on to the next challenge in my life. My number one strength in the way I play basketball is my mindset and mental skill of the game. I have a high basketball IQ and a positive attitude for basketball even if myself or my teammates are struggling throughout a game or even a season. Being a point guard I think the most important thing is to stay focused and keep your head in the game. A point guard shouldnt get frustrated after a bad call or a bad shot, he should keep his mind clear and think positive throughout the whole game. A positive point guard equals positive results. In my college experience I hope to succeed academically. Not only do I want to play basketball but I want to become something more when I get out of college. I know its going to be hard work but Im ready for the challenge. I hope that your interested in me enough so that I can play the game I love at your college.

Introduction to Underwriting

Introduction to Underwriting INTRODUCTION TO UNDERWRITING Underwriting is an agreement, entered into by a company with a financial agency, in order to ensure that the public will subscribe for the entire issue of shares or debentures made by the company. The financial agency is known as the underwriter and it agrees to buy that part of the company issues which are not subscribed to by the public in consideration of a specified underwriting commission. The underwriting agreement, among others, must provide for the period during which the agreement is in force, the amount of underwriting obligations, the period within which the underwriter has to subscribe to the issue after being intimated by the issuer, the amount of commission and details of arrangements, if any, made by the underwriter for fulfilling the underwriting obligations. The underwriting commission may not exceed 5 percent on shares and 2.5 percent in case of debentures. Underwriting has become very important in recent years with the growth of the corporate sector. It provides several BENEFITS to a company:- It relieves the company of the risk and uncertainty of marketing the securities. Underwriters have an intimate and specialized knowledge of the capital market. They offer valuable advice to the issuing company in the preparation of the prospectus, time of floatation and the price of securities, etc. They also provide publicity service to the companies which have entered into underwriting agreements with them. It helps in financing of new enterprises and in the expansion of the existing projects. It builds up investors confidence in the issue of securities. The issuing company is assured of the availability of funds. Important projects are not delayed for want of funds. It facilitates the geographical dispersal of securities because generally, the underwriters maintain contacts with investors throughout the country. TYPES OF UNDERWRITING Syndicate Underwriting: is one in which, two or more agencies or underwriters jointly underwrite an issue of securities. Such an arrangement is entered into when the total issue is beyond the resources of one underwriter or when he does not want to block up large amount of funds in one issue. Sub-Underwriting:- is one in which an underwriter gets a part of the issue further underwritten by another agency. This is done to diffuse the risk involved in underwriting. Firm Underwriting: is one in which the underwriters applyfor a block of securities. Under it, the underwriters agree to take up and pay for this block of securities as ordinary subscribers in addition to their commitment as underwriters. UNDERWRITERS To act as an underwriter, a certificate of registration must be obtained fromSecurities and Exchange Board of India (SEBI). The certificate is granted by SEBI under the Securities and Exchanges Board of India (Underwriters) Regulations, 1993. These regulations deal primarily with issues such as registration, capital adequacy, obligation and responsibilities of the underwriters. Under it, an underwriter is required to enter into a valid agreement with the issuer entity and the said agreement among other things should define the allocation of duties and responsibilities between him and the issuer entity. These regulations have been further amended by theSecurities and Exchange Board of India (Underwriters) (Amendment) Regulations, 2006. ROLE OF UNDERWRITERS The primary role of the underwriter is to purchase securities from the issuer and resell them to investors. Underwriters act as intermediaries between issuers and investors, providing for an efficient of capital. The underwriters take the risk that it will be able to resell the securities at a profit. Perhaps the most visible and familiar element of the initial public offering process is the underwriter. The underwriter is the organization that is actually responsible for pricing, selling, and organizing the issue, and it may or may not provide additional services. With direct public offerings, there is no need for an underwriter. Selection of a good underwriter is of the utmost importance, but its important to understand that many underwriters are equally selective of their clients. Because an underwriters reputation depends on successful issues, few firms will be willing to stake their reputation on questionable companies. When selecting an underwriter, its important to seek out an established company with a good reputation and quality research coverage in your field. The decision may also depend on the kind of agreement the underwriter is willing to make regarding the sale of shares. For profitable and established private companies, it shouldnt be difficult to locate an underwriter willing to make a firm commitment arrangement. Under such an agreement, the underwriter agrees to buy all issues shares, regardless of ability to sell them at a particular price. For riskier or less established companies, an underwriter may offer best efforts arrangement for the initial public offering. A best efforts contract requires the underwriter to buy only enough shares to fill investor demand. Under this arrangement, the underwriter accepts no responsibility for unsold shares. Aside from fees and sales arrangements, most underwriters are fairly similar in their roles. An underwriter will assist in the preparation and submission of all appropriate SEC filings, helping potential investors make informed decisions about your offering. All underwriters are required to exercise due diligence in verifying the information they submit, so a certain amount of investigation should be expected from any responsible underwriter. In addition to SEC registration filings, the underwriter will create a preliminary prospectus that will become a major part of the issues marketing campaign. This document is also referred to as the red herring, after a small red passage in the document that states that the company is not attempting to sell shares prior to SEC approval. Once SEC approval is obtained, the underwriter and the corporation will embark on a road show to gauge and attract interest from investors. While the road show does not involve getting binding commitments from investors, it helps the underwriter determine the best strategies for pricing and issuance. After the initial public offering, the underwriter continues to provide services for the newly public corporation. For months or even years after the offering, the underwriter may continue to make a market for the stock, ensuring liquidity for investors and making the shares more desirable. Twenty-five days after the issue, the underwriter is also permitted to make statements or projections regarding the company and its prospects. ANALYSIS OF RESEARCH ARTICLES ARTICLE 1 ROLE OF UNDERWRITER IN INITIAL PUBLIC OFFERING (IPO) When a company wants to raise funds throughinitial public offering (IPO)it appoints aninvestment bank for underwritingthe issue. AnInvestment bankis also called asmerchant bank. There is no regulatory restriction to use the services of amerchant bankfor IPO. Since in an IPO a company participates for the first time, it doesnt have complete understanding of the rules and documentation, required to be submitted, to get a clearance from the regulator. Famous merchant bankers world over are Goldman Sachs, Credit Suisse and Morgan Stanley. Banks like Deutsche, Citi, UBS etc have investment banking wings. Underwriters assess and analyze firms current performance, firms future earnings potential, industry scenario, competition in the same sector, current local and global market situations etc. to decidethe issueprice/price band. They also work on the activities like completion of the mandatory documentation as required by the regulatory body. Underwriters charge a fee for this activity, which is generally a percentage ofthe issuesize. If the issue size is very large a syndicate of merchant banks takes up the task of underwritingthe issue. However onemerchant bankleads the other. MERCHANT BANKERS The merchant bankers are those financial intermediaries involved with the activity of transferring capital funds to those borrowers who interested in borrowing. They guarantee the success of issues by underwriting them. Merchant banks are popularly known as issuing and accepting houses. Unlike in the past, their activities are now primarily non-fund based (fee based). They offer a package of financial services. The basic function of merchant banks is marketing corporate and other services that are guaranteeing sales and distribution of securities and also other activities such as management of customer services, portfolio management of customer services, portfolio management, credit syndication, acceptance credit, counseling, insurance, etc. As per SEBI (Merchant bankers) Rules, 1992: Merchant bankers means any person who is engaged in the business of issue management either by making arrangements regarding selling, buying or subscribing to securities or acting as manager, consultant, advise or rendering corporate advisory service in relation to such issue management. MERCHANT BANKING Merchant banking activity was formally initiated into the Indian capital markets when grind lays bank received the license from reserve bank in 1967.grindlays started with management of capital issues ,recognized the needs of emerging class of entrepreneurs for diverse financial services ranging from production planning and system design to market research .even it provides management consulting services to meet the requirements of small and medium sector rather than large sector. Citibank setup its merchant banking division in1970.the various tasks performed by this divisions namely assisting new entrepreneur ,evaluating new projects ,raising funds through borrowing and issuing equity. Indians banks started banking services as a part multiple services they offer to their clients from 1972.state bank of India started the merchant banking division in 1972.in the initial years the SBIS objective was to render corporate advice and assistance to small and medium entrepreneurs. REGISTRATION OF MERCHANT BANKERS WITH SEBI It is mandatory for a merchant banker to register with the sebi. Without holding a certificate of registration granted by the securities and exchange board of India, no person can act as a merchant banker in India. Only a body corporate other then a non-banking financial company shall be eligible to get registration as merchant banker. The applicant should not carry on any business other than those connected with the securities market. All applicants for merchant bankers should have qualifications in finance, law or business management. The applicant should have infrastructure like office space, equipment, manpower etc. The applicant must have at least two employees with prior experience in merchant banking. MERCHANT BANKERS IN INDIA There are 135 merchant bankers who are registered with sebi now in India. There are public sector, private sector and foreign players registered with sebi. The below are the examples of few of the merchant bankers in each of the public, private and foreign players. PUBLIC SECTOR MERCHANT BANKERS SEBI CAPITAL MERKETS LTD. PUNJAB NATIONAL BANK. IFCI FINANCIAL SERVICES LTD. KARUR VYSYA BANK LTD. STATE BANK OF BIKANER AND JAIPUR. PRIVATE SECTORS MERCHANT BANKERS: ICICI SECURITIES LTD. AXIS BANK LTD(FORMERLY UTI BANK LTD.) BAJAJ CAPITAL MARKETS LTD TATA CAPITAL MARKETS LTD. ICICI BANK LTD. RELIANCE SECURITIES LIMITED. KOTA MAHINDRA CAPITAL COMPANY LTD. YES BANK LTD. FOREGN PLAYERS IN MERCHNT BANKING. GOLDMAN SACHS(INDIA)SECURITIES PVT.LTD. BARCLAYS SECURITIES(INDIA)PVT.LTD. BANK OF AMERICA.N.A. DEUTSCHE BANK. DEUTCHE EQUITIES INDIA PRIVATE LIMITED. SERVICES OF MERCHANT BANKS PROJECT COUNSELLING: Project counseling includes preparation of project reports,deciding upon the financing pattern to finance the cost of the project and appraising the project report with the financial institutions or banks.it also includes filling up of application forms with relevant information for obtaining funds from financial institutions and obtaining government approval. MANAGEMENT OF DEBT AND EQUITY OFFERINGS This forms the main function of the merchant banker.he assists the companies in raising funds from the market.the main areas of work in this regard include: instrument designing, pricing the issue, registration of the offer document, underwriting support and marketing of the issue, allotment and refund, listing on stock exchanges. ISSUE MANAGEMENT Management of issue involves marketing of corporate securities viz. equity shares, preference shares and debentures or bonds by offering them to public. Merchant banks act as per SEBI guidelines, the merchant banker arranges a meeting with company representatives and advertising agents to finalize arrangements relating to date of opening and closing of issue, registration of prospectus, launching publicity campaign and fixing date of board meeting to approve and sign prospectus and pass the necessary resolutions. Pricing of issues is done by the companies in consultant with the merchant bankers. MANAGERS, CONSULTANATS AND ADVISERS OF THE ISSUE: The managers of the issue assist in the drafting of prospectus, application forms and completion of formalities under the companies act, appointment of registrar for dealing with share applications and transfer and listing of shares of the company on the stock exchange. Companies can appoint one or more agencies as managers to the issue. UNDERWRITING OF PUBLIC ISSUE: Underwriting is a guarantee given by the underwriter that in the event of under subscription, the amount underwritten would be subscribed by him. Merchant banking subsidiaries cannot underwrite more than 15% of any issue. PORTFOLIO MANAGEMENT: Portfolio refers to investment in different kinds of securities such as shares, debentures or bonds issued by different companies and government securities. Portfolio management refers to maintaining proper combinations of securities in a manner that they give maximum return with minimum risk. RESTRUCTURING STRATEGIES: AA merger is a combination of two companies into a single company where one survives and other losses its corporate existence. A takeover is the purchase by one company acquiring controlling interest in the share capital of another existing company. Merchant bankers are the middlemen in setting negotiation between the companies. Merchant bankers assist the management of the client company to successfully restructure various activities, which include mergers and acquisitions, management buyouts, joint ventures among others. OFFSHORE FINANCE: The merchant bankers help their clients in the following areas involving foreign currency: Long term foreign currency loans Joint ventures abroad Financing exports and imports Foreign collaboration arrangements ROLE OF MERCHANT BANKER IN A PRIMARY MARKET ISSUE MANAGEMENT: Merchant banker is the intermediary appointed by companies in the primary market issue. It has to look at the entire issue management and work as the manager to the public issue. References: http://lastbull.com/iporole-of-underwriter/

The Strategic Management Of Ryan Air

The Strategic Management Of Ryan Air A Jenoir management consultant is providing consultant service for strategic management of the companies. Senior management team of Ryan air details on the contracts signed with Jenoir management consulting company for get the consulting service in strategic management of the Ryan airs future. As a result of this we carried out a strategic analysis in terms of the environment, industry and also regarding the internal performance of Ryan air. The aim of this report is to provide consulting services to Ryan air for its strategic management in the future. This report will focus on: The strategic analysis of the Macro Environment taking into account the PESTEL factors which will draw out the opportunities and threats, Industry analysis using the Porters Five Forces Model and a Strategic Group Model and Internal analysis drawing out the resources and capabilities and the VRIO using the Value-Chain Model for Ryan air. Thereafter, recommendations will be given as to how Ryan air can improve which will be continued in the second part of this report. Hence, this report will show how Ryan air can perform better in the long run by identifying the key strategic issues. Table of Contents EXECUTIVE SUMMARY 1 Table of Contents 1 1.0 INTRODUCTION 3 2.0 CRITICAL ISSUES 4 2.1 Company Background 4 2.2 Core Problem 5 3.0 ANALYSIS (MODELS / THEORY USED) 5 3.1 EXTERNAL ANALYSIS 5 3.1.1 PESTEL ANALSIS 5 3.1.2 Porters Diamond Model of Ryan air 6 3.2 INDUSTRY ANALYSIS 6 3.2.1PORTERS FIVE FORCES ANALYSIS OF RYAN AIR 6 3.2.2 Strategic Groups 7 3.3 INTERNAL ANALYSIS 8 3.3.1 VRIO/ VRINE of Ryan air 8 Barneys Model for Ryan Air 9 3.3.3 Ryan air Value Chain Analysis 9 4.0 EXTERNAL ENVIROMENTAL ANALYSIS 10 5.0 INTERNAL ENVIORNMENTAL ANALYSIS 11 5.1 Resources and capabilities 11 7.0 CONCLUSION 13 8.0 RECOMMEDATION 14 9.0 REFERENCES 15 10.0 APPENDIX 16 10.1 Appendix 1 16 10.2 Appendix 2 17 10.3 Appendix 3 18 10.4 Appendix 4 19 10.5 Appendix 5 20 10.6 Appendix 6 21 10.7 Appendix 7 22 10.8 Appendix 8 22 1.0 INTRODUCTION The present business world is highly complex, competitive and fast changing. Ryan air started in year 1985 with only 57 staff members and with one 15 seated turboprop plane from the south of east of Ireland to London Gatwick which carried 5000 passengers on one route. Ryan air was the first budget airline in Europe and also more successful low cost airline in Europe. Ryan airs competitive advantage is its ability to grow and outperform others as it is Europes first low-fares, no-frills carrier and in spite of economic instability there has been a growth in profits. (Ryan air 2006) According to Viljoen and Dann (2003)strategic management is defined as the process of identifying, choosing and implementing activities that will improve the long run performance of an organisation by setting directions and by creating on going compatibility. Currently in 2006 European air line industry facing a backdrop and the burgeoning budget sector. In order to analyse Ryan airs strategic will be focus on External, Internal environment and Industry. External environment will be analysing the factors in the macro environment which influence future industry growth and development, factors affecting current and future profitability, position of competitors and strategic groups within the industry, to gain the driving forces of the industry, dynamics and finally to understand international competitiveness. Further more this analysis focus on how Ryan air wants to create value for customers, its customer value and competitive advantage, its activity value chain, customer value the value proposition and determining the business model to deliver the value position, short term and long term focus and sustainability and methodology of analysing business strategy. In final this analysis will focuses on Ryan airs current strategic management views and how it can benefit by using strategic management theories and the means by which the organisational efficiencies of Ryan air would be improved and recommend to management team of Ryan air for improving strategy implementation. 2.0 CRITICAL ISSUES 2.1 Company Background Ryan air started in year 1985 with only 57 staff members and with one 15 seated turboprop plane from the south of east of Ireland to London Gatwick which carried 5000 passengers on one route. Ryan air was the first budget airline in Europe and also more successful low cost airline in Europe. Ryan airs competitive advantage is its ability to grow and outperform others as it is Europes first low-fares, no-frills carrier and in spite of economic instability there has been a growth in profits. In identifying the current business strategy we would be analysing the vision, mission and objectives of Ryan air. The mission of the Ryan air is to become Europe largely gainful low fare by rolling out proven low cost no frills in all markets in which we operate to the benefits of passengers, people and share holders. (Ryan air Report, 2007) Ryan airs social responsibility is providing good service to the passengers. The vision is to firmly establish itself as Europes lading low fares scheduled passenger airline through continued improvement and expanded offerings of its low fare service (Ryan air Report 2007). Ryan airs objectives are 40 percentage increase the market share within the low fare airline sector, in 2012 double the annual passenger transportation to eighty million and to quadruple Ryan airs annual profit up to 1,230 billion. 2.2 Core Problem Ryan air being one of the leading budget air lines in Europe, which is currently facing crisis. Though they were performing well during the last few years, currently European air line industry facing a backdrop and the burgeoning budget sector. Therefore it is necessary for Ryan air to consider the causes of the crisis and necessary action well on time. Due to this reason Jenoir management consultants will be analysing the external, internal and industry, whether Ryan air could over come this barrier. 3.0 ANALYSIS (MODELS / THEORY USED) 3.1 EXTERNAL ANALYSIS 3.1.1 PESTEL ANALSIS Pestle analysis is important for identify Ryan airs strategies through macro external factors. These factors are in the airline industry to understand Ryan airs future external threats and opportunities. (Refer Appendix 1) Political and Legal Security solution is the current move of government about airline industry, which will increase the cost of service. Governments can take an action if there will be any dispute in business deals from Ryan air with Airport. The Ryan air must also adapt its strategies to suit the government legislations and policies and must give more attention to the political of the country where they operate. Ryanair have been involved in various legal disputes with governments both in Ireland and the EU regarding their business deals with airports and airline regulating bodies. Economic Factors Global Economic recession in 2001-2003 had adversely affected many countries and in had collapse the financial strategies of the company. Due to the recession the income level of the people has come down due to that most people are postponing or cancelling their air travel. Socio cultural Factors After the September 11th incident in USA air travel as become a high risk in business in air line industry. More security measures are taken and the passengers are facing difficulties. This has become a huge threat to air line industry. Technological- Ryan airs website is the largest travel website in Europe and this could help them to increase e-commerce and advertising revenue. Their in flight internet gambling, satellite television and web-based check-in is an added advantage for Ryan air. Environmental Factor: The notion that the world is becoming smaller and a move towards eco friendly environment by controlling noise levels and green-house carbon emissions. 3.1.2 Porters Diamond Model of Ryan air Porters diamond model for Ryan air is stated in appendix 2 respectively. 3.2 INDUSTRY ANALYSIS 3.2.1PORTERS FIVE FORCES ANALYSIS OF RYAN AIR Bargaining Power of Supplier Ryan airs main aircraft supplier is Boeing and other one is Airbus. Switching cost will be high when change the aircraft. Fuel prices will affect Ryan airs cost directly, so they are highly dependent the fuel prices and also it is very big threat of their strongest side. Generally regional airports have little bargaining power if they are heavily dependant on one airline but day by day their bargaining power increasing because of the competition between low cost airlines. Besides of those regional airports, bigger airports have very huge bargaining power. (Refer Appendix 3) Bargaining Power of Customers Ryan air is the low cost airline for all Europe destinations and customers are especially in recession times highly price sensitive. It is very easy to change their airline and it is In this customers knowledge about the cost of service is high and there is no customer loyalty for Ryan air. Even though there is no customer loyalty, bargaining power of customers is low. Ryan air is the cheapest airline for all Europe destinations and customers are especially in recession times highly price sensitive. Threat of New Entrants There are lots of barriers to entry and it is very risk to be new in airline industry. The capital that will invest in this sector is very high. It is also hard to take a place current competition and also hard to find suitable airports for the flights. Threat of Substitutes There is not any brand loyalty of customers and Ryan air preferred customer relationship is not close relationship. If their customers find better way to travel they will not feel any hesitation to chose it. So the threat of direct and indirect substitutes is very high and the most important point is there are no switching costs for the customers. Competitive Rivalry The market is highly competitive. Most of Ryan airs cost advantages can be imitative immediately. In Europe it seems like there is an agreement between Ryan air and Easy jet about not to compete head to head. However if any company does decide to compete on the same basis as Ryan air it will be highly critical for Ryan air. 3.2.2 Strategic Groups Strategic Groups have been defined by Finlay (2000) as groups of business that are likely to respond similarly to environment changes and be similarly advantaged or disadvantaged by such changes. Porter (cited in John et al, 1997), suggests that an industry can have only one strategic group if all firms followed essentially the same strategy. At the other extreme each firm could be a different strategic group. Strategic Group Map analysis below of the European Airline industry will indicate that Ryan air has to compete with Aer Lingus and EasyJet very closely while British Airways and other national carriers are in the region. Other smaller budget airlines based across Europe such as FlyBE, German Wings and Hapag Lloyd Express also pose competition in routes which they commonly compete (Little Masters, n.d.). This diagram also shows how the Mega carriers compete within their strategic groups as opposed to the Mid-Sized carriers. Private Mega Carriers: American Airlines British Airways Mid-Sized Carriers: FlyBE German Wings Aer Lingus EasyJet Government-Owned Carriers: British Airways Bulgaria Air Government No: of Destinations High Low Ownership 3.3 INTERNAL ANALYSIS 3.3.1 VRIO/ VRINE of Ryan air VRINE MODEL The top management should be able to identify the resources available in the organisation presently in order to assess whether the resources available are sufficient enough to implement the strategies. So the outcome of the reconstruction depends on the resources available at that time. VRIO of Ryan air Value, Rarity, Imitability, Organization Ryan air values its high service performance. The airline is known for its strict observance on punctuality, high rate of flight completion, and low baggage loss. It purchased modernized fleet which leads to less expensive maintenance with uniform brands used while high aircraft utilization strengthens its business and financial sheet. The rarity of Ryan air is based primarily on its strategic positioning and management operations. Its implementation on low fares service and high level of customer service delivery made Ryan air strong and competitive compared to other firms in the same field. Other firms in the same industry hardly find their ways in imitating the same operations and strategic planning. Ryan air produced effective planning and management operations in which it leads others to imitate. Not all of the tangible and intangible resources like software, fleet designs, infrastructure, organizational culture, and knowledge management can be imitated. Causal ambiguity, time c ompression diseconomies and path dependencies are factors which affect the difficulty of other firms to imitate effective plans of successful firms like Ryan air. Barneys Model for Ryan Air The top management should be able to identify the resources available in the organisation presently in order to assess whether the resources available are sufficient enough to implement the strategies. So the outcome of the reconstruction depends on the resources available at that time. According to the Barneys model can analysis Easy Jet as Ryan airs competitor. Easy jet has enough recourse. For an example they have large number of air craft and their skytrax star rate level is high, so easy jet is valuable. Easy jet is not rare because same strategy what easy jet currently using is other competitors also using. Easy jet can easy to imitate to another company because low fare and also they have enough substitutes (for an example Train, ship). Easy jet is competitive parity. (Refer Appendix 4) 3.3.3 Ryan air Value Chain Analysis Ryan air strongly manages and forms relationships with different suppliers for an example. Boeing and food, beverages etc, to make sure goods are received of requirement standards and on time in order to add value through out its value chain. In order to add substantial value for its service by providing low cost and directly monitors relationships with airports around Europe, so they provide subsidies to the airliner in order for them to provide low cost and seen as adding grater value for customers. In order to reduce the cost and provide low cost to customers Ryan air contracts staff for aircraft handling, ticketing and baggage handling to third parties at competitive rates as well as engine repairs and heavy maintenances of its aircrafts. Therefore reduces direct exposure to employee relationships and disputes reducing costs all through value chain. In order to add greater value for customer, the aircraft staff e.g. pilot, cabin crew, they holds close relationships, giving the right training making them to feel confident to answer on flight questions. The airliner has a commission placed for its aircraft crew linked with the sales of duty paid goods. Therefore close management with aircraft crew ensures good labors turnover reducing the threat of staff being absent for flights, thus seen as adding value for customers. (Refer Appendix 5) 4.0 EXTERNAL ENVIROMENTAL ANALYSIS The external organizational environment includes all elements existing outside the boundary of the organization that have the potential to affect the organization (Daft, 1995). The environment includes competitors, resources, technology and economic conditions that influence the organization. The external environment can be further conceptualized as having two layers generally and task environments. The general environment is the outer layer that is widely dispersed and affects organization indirectly. It includes social, demographic and economic factors that influence Ryan air. The most important part concerning in the task environment which is closer to the organizations; its includes the sectors that conduct day to day transaction with the organization and directly influence their basic operations and performance: suppliers, competition, customers and the labour market. (Refer Appendix 3, 6) 5.0 INTERNAL ENVIORNMENTAL ANALYSIS All organizations have strength and weakness in its areas of business. No organization is equally strong or weak in all areas (David, 2005). The process of internal environment parallels that of the external analysis. Resources come in many forms form common factor inputs to highly differentiated resources that are developed over a man years and are very difficult to replicate (Collins and Montgomery 1998). Internal environment analysis involves a study of culture, structure and resources including technology adapted by the origination. 5.1 Resources and capabilities Ryan airs main tangible resource is air craft. Their intangible resource includes things such as companys reputation (first budget airline and low fare airline), brand name (Ryan air), technical knowledge (100 percentage online ticket booking), patent and trademark. A competitive advantage is the set of factors and capabilities that allow firms to consistently outperform their rivals. (Refer Appendix 7) Tangible Resources Air craft Technical Advancement Equipements Competencies Price, Quality service, Reliability Competitive advantage of Ryan air Capabilities Low cost, High profit Intangible Resources Ryan airs Reputation Brand name Low fare Technical knowledge Figure 1: Resources based view if competitive advantage of Ryan air 6.0 SWOT ANALYSIS This analysis is an effective way of identifying internal strengths and weaknesses of Ryan air and of investigative opportunities and threats of the external environment. (Refer Appendix 8) Strengths Ryan air is the largest and most successful of Europes low cost airline. This fact is strongest selling point for Ryan air. Result of this low cost strategy, which increases customers and airline, is expanding rapidly. Ryan airs website was the largest travel website in Europe. And the fifth most recognized brand on Google. According to the Ryan air annual report 2006, Ryan airs ancillary revenues (include non flight schedule services) had climbed by 36 percentage. Weaknesses Ryan air is the least favorite airline in the world. Passengers who travel in Ryan air lose their luggages very often. Ryan air staffs are considered to be very unfriendly and there is common issue that the process always delays. Ryan air was only mid range or below average in its P/E multiple relative to peers like easy jet, whose shares had risen by 46% during the year. Ryan air has been criticized for many aspects of its customer service. Opportunities They have potential market share. Because low cost airline market share not reached the peak level. Ryan air has better opportunities to dominate and catch up with the competition in the European airline industry in terms of providing more quality service. The continuous initiatives of the company in diversification of its revenue resources also open new opportunities to make the business become stronger to outgrow all its competitor companies. Threats Ryan air faced various challenges as it entered the second half of fiscal 2007. The airline itself predicted that its extra capacity building would create uncertainty about the success of new routes, locations and other difficulties. These were extra marketing and discounted fare costs incurred in launching new routes, as well as overcapacity leading to price cutting by rivals. 7.0 CONCLUSION By taking into consideration the above analysis, Jenoir management consultant believe Ryan air has gained competitive advantage since there is a greater opportunity and strengths regarding to the air line industry. Based on the External, Internal and Industry analysis, there are some major issues which were identified by Jenoir management Consultant analysis team in relation to Ryan air have weaknesses and threats. There are many areas which Ryan air should workout. Systematic, healthy and an organic organization contribute much to the success of Ryan air. An organization with clear objectives and capable to draw everyone to work with these objectives will lead to its success. For airlines, the future will hold many challenges. Successful airlines will be those that continue to tackle their costs and improve their products, thereby securing a strong presence in the key world aviation market. Therefore taking into consideration these detrimental impacts to the entity Jenoir management Consultant analysis team formulated certain recommendations for Ryan air to perform the task of a guideline in overcoming these weaknesses and threats, by systematically utilizing these recommendations. Ryan air will be able to convert its current weaknesses into opportunities and strengths in the future. However risk management in the strategic management must be given an important consideration in strategic management plan implementation process. 8.0 RECOMMEDATION Based on External, Internal and Industry analysis, Jenoir management consultants is recommended that Ryan air consider the move their business with low cost strategy in to international market, so Ryan air should has a detailed plan for this and be able to provide good customer service to the customers like by having discounted flights, promotion to keep the competitive advantage at a stable mode within its competitors and also will need to focus more on the core competition that will help Ryan air to practically designs suitable airline operation within their market. There are some other recommendations for Ryan air, Ryan air, being the market leader in the budget airline industry is performing very well as of now. But it does need to take into account all the factors discussed above. Ryan air also has to make sure that even though Michael OLearys tactics work today, they may backfire tomorrow. Ryan air should slow down on the aggressiveness of its strategic planning and implementation so that it can avoid getting into trouble with the governments and end up paying millions. In order to retain its employees, motivate them and also another means of cutting costs, Ryan air can adopt a similar strategy that of Jet Stars JEN (Jet star Employee Network). This intranet software is both the sophistication and the functionality necessary to gather, share and communicate key corporate, HR and time critical staffing information. Head of Corporate Relations, Simon West away says JEN delivers ongoing savings of about $130,000 annually (Story, 2009, p.18). 9.0 REFERENCES Collins, D.J., Montgomery, C.A. (1998), Competing on resources: strategy in the 1990s(Volume 73), Harvard Business Review Daft, Richard L. (1995). Organizational Theory: Cases Applications. (4th edition.) : West Publishing Company David, R.D.(2005). Strategic management: concepts and cases. (10th edition): Prentice Hall of India Find Article (2005). EasyJet to enter Irish Market for first time. Retrieved April 21, 2010, from http://findarticles.com/p/articles/mi_m0CWU/is_2004_Nov_23/ai_n7074328/?tag=content;col 1 Find Article (2009). Company Watch Ryanair. Retrieved April 22, 2010, from http://findarticles.com/p/articles/mi_6781/is_2009_August_24/ai_n42028112/?tag=rel.res1 Hodgson, N. (2009, November 20). Ryanair set to overtake EasyJet in JLA ranks. Daily Post Liverpool. RetrievedApril 19, 2010, from http://findarticles.com/p/articles/mi_8008/is_20091120/ai_n42256727/ Hubbard, G. Rice, J. Beamish,P. (2005). Strategic management thinking analysis action. (3rd edition). Pearson education Australia Lagadec, K. (2008). Airbus and Boeing face a dark and painful future. Post Carbon Institute. Retrieved April 20, 2010, fromhttp://www.postcarbon.org/article/40546-airbus-and-boeing-face-a-dark/13913-energy The Airline Industry. (n.d.). retrieved April 21, 2010, from http://adg.stanford.edu/aa241/intro/airlineindustry.html Viljoen, J., Dann, S. (3rd Ed.). (2003). Strategic Management: Planning and implementing successful corporate strategies. NSW, Australia: Pearson Education Australia. 10.0 APPENDIX 10.1 Appendix 1 PESTLE ANALYSIS OF RYANAIR Political Environment National airlines supported by certain countries Europe union expansion with new routes and new competitors. New European Union rules and regulations. Due to the government stability tourism will be increase, which is good for Ryan air. New different tax policy for different countries. Economic Environment Threat of Ryan air is increasing fuel price. Taxes and Interest rates Decrease of US dollars Increasing business class travelling The threat of the substitutes Rise of airport handling charges SOCIAL FACTORS Increasing grey market, which is the trade of a commodity through distribution channels, which while legal, are unofficial, unauthorized, or unintended by the original manufacturer. Populations growth does an ageing population affect them i.e. baby boomers, lots of people in that life stage have more disposable income to spend Safety solutions Trend TECHNOLOGICAL FACTORS Internet sales and Increased internet competitions High speed trains Online check in Low fuel use LEGAL FACTORS Privatizing of airline industry Illegal subsidies from airports Competition laws in aviation industry Allegations of false advertisement Rules and regulations about Carbon emission level ENVIRONMENTAL FACTORS Noise level controls , Global warming ,2.6% of Carbon emission in the EU, so this gas will effect Green house 10.2 Appendix 2 Porters Diamond Model of Ryan air Factor Condition Demand Condition Firmly strategy structure and Rivalry Related supporting Industries Change Government Firm Strategy, Structure and Rivalry Environmentally concerned. Entrants of other Low Cost Carriers Factor conditions Technological advancement. Demand conditions Demand is increasing for Low fares air travel. Related and supporting industries Car hire, Hotels, Travel insurance, Baggage tracing, Free city guides, Ticketing, Aircraft handling ,Airport coach and other services 10.3 Appendix 3 Porters Five Forces model Bargaining power of Supplier Bargaining power of Buyers Threat of New Entrants Threat of Substitutes Competitive Rivalry 10.4 Appendix 4 (Source: VRIO model / Barneys model http://www.web-books.com/eLibrary/ON/B0/B58/033MB58.html) Competitive Implications from Recourses ( Easy jet as Ryan airs competitor) Valuable Rare Difficult to Imitate Without substitutes Competitive Implication Yes No No No Competitive parity 10.5 Appendix 5 Value Chain Analysis of Ryan Air Firm Infrastructure (Head Quarters) Technology Development (Internet, Integrate system, Low tech marketing , Internet sales) Human Resource Management ( In house, Low cost training, Management control, Limited crew, performance contracts) Procurement (Boeing discount, Alliances, Low cost, out sources private) Inbound Logistic (Quality training, Low cost supplier, Airport agreement) Operation (No frill, low cost ) Outbound Logistic (Reliable service, quick turn around) Marketing and Sales (Free publicity, Low cost, promotions, Internet sales) Services (High productivity, Limited resourses) 10.6 Appendix 6 Location of the organization general task and internal environments Technological CUSTOMERRS Task Env Internal Environment Socio cultural LABOUR MARKET Employees Culture International COMPETITORS Management SUPPLIERS Legal/ Political Economic It can be noted that SUPPLIERS forms an integral part of task environment and the role of importance of suppliers of components. 10.7 Appendix 7 Resources There are two kinds of resources, tangible and intangible which can further be categorized into financial, human, physical and intellectual capital. Physical Resources which Ryan air possesses is 196 Boeing aircrafts. Huge amount of money was being spent for the aircraft maintenance and they need to keep the resources proper and running to make sure that these will not harm their low cost structure. They also have the youngest fleet in the whole of Europe with a highly fuel efficient capacity. Financial Resources Ryan air is the highest profit making low cost structured airline. According to OHiggins (2007), Ryan airs profits have been increasing 8.5% on average per year. It also goes onto say that in its Annual General Meeting in 2006; the airline had delivered 12% increase in net profits despite a 74% increase in fuel cost. Human Resources Initially Ryan air started with only 25 employees and had 3500 people by the year 2006 and all of them are entrenched with a cost cutting approach. Ryan air employees a very much dedicated as Ryan air pays its employees well. In its 2006 annual report it claimed to have the highest pay figures than any other major European airline. Also by tailoring rosters, the carrier maximized productivity and time off for crew members. The biggest HR advantage Ryanair has is Michael OLeary. Intellectual Capital The high