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