Just War Essay

The just wars fought by the United States government against Indian tribes were iniquitous and questionable. The formulation of the concept of just and lawful war was proof of the same reason why most Indian tribes sided with England, that the Americans were corrupt and fraudulent. I believe that there is always a democratic and diplomatic way of handling problems and conflicts, especially when dealing with political and social issues. For instance, the U. S. government, holding a prominent and powerful place in society, should have exercised authority responsibly by surveying and gathering information regarding the concerns and demands of the tribes. There should have been in depth discussions regarding the peace-keeping process of local tribes, as well as its relation to their culture. When we talk about culture in the global context, we are talking about variety and difference. What I mean is that, there is and will never be one right culture. Cultural relativism, and the likes, proves such assertion. To apply this concept in the situation, what the U. S. government believes as a process of long term peace, may not be true to the beliefs and traditions of the tribes. Tribal conflicts have been a part of their existence, and long before the intervention of the Europeans and the Americans, they have managed to coexist despite conflicts, which they settle within their own means of setting up a common ground and bringing back social order. Therefore, the U. S. government should not have made assumptions about the practices of the tribes. Moreover, every person has the right to believe in things they want to believe in. So if tribes believe that the Americans are oppressive and chose to side with the English, then that is their own right – to look after their best interests in order to survive. They should not have been punished due to their beliefs and their prevailing instincts to survive and live in more desirable conditions. After the war ended, and the English were defeated, the U. S. government should have sat down with tribal leaders and talked about what things should be done in order to calm and satisfy the tribes. The just and lawful wars, as claimed by the U. S. government were tactless and unreasonable.

Explain “Transfer Pricing” as presented in Stealing Africa

Explain â€Å"Transfer Pricing† as presented in Stealing Africa. Transportation Pricing: When there is any kind of trade or merchandising or buying that occurs between two companies that are lawfully related someway so the monetary value of the goods or the merchandises that are traded between those two companies is what we call reassign pricing. Transfer pricing is fundamentally the money saved by the company by hedging revenue enhancement through selling the goods or purchasing the goods from its ain subordinate and so showing it as an disbursal in its balance sheets. GLENCORE owns the excavation Millss in Zambia and the coal that is obtained from the state is one of the biggest export points of the state and a batch of their fiscal public assistance depend upon this natural resource. What GLENCORE does is that it extracts coal from Zambia through MOPANI mines that it owns in the state and so buys the coal at a monetary value that they set for themselves. This manner they evade paying a higher revenue enhancement rate by demoing a lower income or net income that is generated by the company runing in Zambia. Legally it is of import for companies to bear down a monetary value for a merchandise that they decide to sell and purchase from its subordinate or to its subordinate at a monetary value that would hold been chosen if the company was covering or trading with a company that was non a portion of its entity that is what we normally call an arm’s length trader. Unless and until GLENCORE buys the coal that it extracts from Zambia at a monetary value that it would hold to pay in instance it was purchasing from an independent party. Since the company is non making this, the state and the people of Zambia are enduring through immense losingss in national income as companies like GLENCORE usage transportation pricing to hedge the revenue enhancements that they should really be paying. Taking advantage of the inefficient legal system present in Zambia, the company is carry oning concern in a non-ethical mode. Harmonizing to Stealing Africa and Amos Wilson, Whites are dominant globally because they are still populating on the accrued advantages gained from white privilege historically and in the present. Explain including illustrations. White privilege fundamentally means that a individual gets treated otherwise merely because of his race. When a white individual is given penchant over other people belonging to different races, he is fundamentally sing white privilege. Even though things have been a small better for people from different races late but its still non anything near perfect. Black people are discriminated badly all around the universe but particularly in the western states. The jurisprudence, the province and other establishments are ever biased towards the westerner and the fact that it has been a superior race in the past and is still ruling the universe scenario, it is hard to raise a voice against it and make something to wholly do it halt. In the docudrama, they talked about Marc Rich who had been involved in the biggest fiscal fraud and revenue enhancement fraud in the history of the United States of America but he was still pardoned because of his presence non merely socially every bit good as economically. He had the best of the best attorneies supporting him and constructing up a instance to turn out him guiltless even though there was adequate grounds to convict him and direct him to gaol. GLENCORE’s operations in Zambia are earnestly damaging the country’s environment and public wellness conditions and besides rip offing the country’s fiscal establishments by non paying the right sum of revenue enhancements utilizing transportation pricing to take down their cost and take advantage of Zambia’s uneffective legal system utilizing their expert attorneies and comptrollers that gathers informations and physiques instances and present studies that can non be countered by the Zambians. Africa is a affluent continent yet many Africans live in poorness. Explain. Africa is so a rich continent but the continent is non rich in footings of fiscal criterions and economic growing. The continent is highly affluent when it comes to holding natural resources that are an of import trade good out in the universe and that have attracted legion Multinationals in to the continent. Now even though many would state that the foreign direct investing inflow would assist the states in the continent flourish and recognize their true potency but that is non what is go oning. Majority of the African states are really a portion of the list that includes the poorest states and the little economic sizes. The major ground for this is that the legal system in these states is really inefficient as of now. There is high corruptness and really small focal point on the some of the really major issues such as wellness and instruction. The political system in these states is besides really weak which makes the provinces really vulnerable to foreign influence and puts them at a hazard of being exploited which is what is go oning. The multinationals that are runing in the states in Africa are taking advantage of the all the loopholes on the system and operating in an unethical manner which consequences in highly high net incomes for them but the states itself and the people populating there are severely affected. The negative effects on the people are non merely restricted to pollution and corruptness, there is small money available to better the substructure and no focal point on instruction as they lack even more major basic necessities like nutrient and wellness attention. The rate of unemployment is besides really high and the immense companies prefer paying below the globally recognized pay rates taking advantage of the fact that the people in these states are highly despairing for a occupation. Harmonizing to Amos Wilson ( Blueprint for Black power ) , the wealth of people is non in their things but in their heads. Explain. If the wealth you had depended upon the things that you had so Africa wouldn’t have been fighting with issues such as poorness and unemployment. Taking the illustration of Zambia as it was discussed rather briefly in the docudrama, the state is fighting with serious issues and even though it has copiousness of natural resources like coal, it still fails to better its conditions and is a direct to foreign development. The states that have leverage on other states are the 1s that can acquire what they want even if its illegal and so protect themselves from the effects. They do that by assailing at the loopholes in the system of these hapless or developing states and utilize their influence to acquire their manner. Even though Zambia has immense sums of coal with it but merely holding the resource with them is non making them any good and the state is enduring at the custodies of the multinationals that aren’t paying adequate revenue enhancement and destructing their environment and people’s wellness without any guilt. If these states had people that could be after a manner to utilize their strength in a manner that could assist them protect themselves against these multinationals and foreign influence so the province of the Zambia would hold been better than what it is now. The state lacks heads that could assist them counter the foreign menaces and influence and do people do concern on their footings since they are utilizing their resources, their land and their people. Merely because Zambia lacks a proper system and proper planning and heads that can happen a manner to leverage their place, they will maintain on enduring from legion issues even when it is highly affluent when it comes to natural resources like coal.

Perental Responsibilty Laws Research Paper Example | Topics and Well Written Essays - 1250 words

Perental Responsibilty Laws - Research Paper Example Furthermore, these liabilities do not intrude on the common law responsibilities of the parents that are connected to the failure of parents averting a child’s action that might be in any way harmful. Comparing the common law and the Parental responsibility laws, where the former does not put a parent responsible for their child’s actions by design, the latter acts as a medium where it puts the parent directly responsible for any minimum intentional damage caused by the child (Lehrer 2009). Combining it with criminal justice, Sage (2009) mentions the ‘duty of control’ view in which parents are liable for their children’s action if they have not adequately controlled the child. That is, if the control was adequate, they cannot be answerable. In such an instance, controlling the life of a child is limited to only stopping them from engaging in any criminal behavior. If the dos and don’ts are effectively controlled by the parents, then they are n ot responsible for the crime. According to Dr. Weatherburn (as cited in Loeber and Louber, 1986) in the US research, the criminal behavior is directly related to the parental control. This research stated that the parent factors that make way to such crime include the likes of neglect, conflict and discipline, deviant parental behaviors and attitudes, and family disruption. The research also stated that if the amount of neglected children rises to 1000, then the number of children involved in crime would increase to 256. Thus, with the positive relation revealed, it is eminent to control the above stated parental factors. However, these laws are not implied on the parents until their child reaches the age of 8 and 10. Also, the laws are no more applicable once the child crosses the age of majority which may differ with each border. This law first originated in the forties in the state of Hawaii. After 1846, it became one of the most widely implemented laws; those parents who were re sponsible for the intentional crimes of their children ended up following the statutes of civil liability (Weatherburn, 2004). After it originated in Hawaii, the first state to add to the law was Colorado in 1903. Since then, almost all of the states in the US have adopted such types of laws. The law divides the juvenile crime in two. One is the civil offense and the other is criminal in nature (Weatherburn, 2004). Considering the Australian courts, the Family Law Reform Act was applied in 1995 with several amendments. In 2006, a â€Å"friendly parent† provision was introduced that considered the overall relation each parent had with the other regarding the matters related to children (Benevolent society). As for UK, the first legislation was imposed in 1933 in which those parents whose child made an offence became the subject of penalty. In Ireland, the willful ignorance of parents on the behalf of their children, thus, leading to criminal behavior, is taken into considerati on under the Children Act 2001 (Roth 2006). Therefore, apart from the legislative measures in the above stated countries, it becomes evident that the significance of parent responsibility is becoming increasingly important (Roth 2006). It also becomes apparent that these legislations have been a part of the above mentioned nations for long. However, there was one incident that really gave pace to fighting youth crime. In 1996, one Provenzino case caught the attention of the entire

Toyota Management Strategic Choices Essay Example | Topics and Well Written Essays - 1000 words

Toyota Management Strategic Choices - Essay Example Great encouragement arose from the Japanese government that needed domestically produced vehicles. Toyota Motor Company was established in 1937 as a stand alone and separate company. The name of the company was changed because it was believed by the Japanese that Toyota, eight is believed a luckier number(Black & Miller, 2008). Moreover, the first car and truck by the company was produced in 1935, the model A1 and G1 respectively. An era of rapid expansion overtook the Toyota Company in 1945 when the company was permitted to sell to the United States military. At the post war times, the company made trucks for war to the military and in 1947 it made the model SA, Toyopet. The car was designed to be cheap and handle the rough terrain of postwar Japan. In the preceding two years, an SD model was successfully made and the Toyopet SF became the first popular Toyota car. In 1955, Toyota Company made the RH model with a 48 horse power and during that time, a year round closure of 8,400 car s was produced (Liker, 2004). In addition, Toyota started producing the Land cruiser, a civilian truck, in the same year. The start of Toyota international sales was characterized by the philosophy of making the production and designs of its products local, building the vehicles in the destined countries to adapt them and also stem up the long term relationships with local labor and local suppliers (Magee, 2008). The company produced the Corona, that had a relatively large interior space and extremely comfortable and had a low price and improved quality however rust was a serious drawback In business there are a category of schemes developed to analyze, maintain, and achieve competitive advantage. Two fundamental decisions accrue: to start with is whether to primarily compete on price, cost, or provide distinctive features that justify higher prices. Secondly, how broad the competitive scope or the market target is.(Pearlson & Saunders, 2010) To commence, the price (cost) leadership strategy was used, has been used and will be used in times to come for Toyota Company to obtain a competitive advantage over its rivals or competitors as Honda Motor Company and General Motors Company Limited to mention a few while maintaining profits in its business operations. The strategy advocates for the vehicles produced by the Toyota Company to always appeal to a broad section of the market at a lower cost. For instance, the Corona was lowly priced to suit the needs of the market and cover a range of customers ( Hoch, 1998) In an attempt to implement this strategy successfully, the company used exceptional efforts to reduce costs without an exclusion of features considered essential by buyers. This was by an establishment of Greenfield operations in the new countries. However, a critical cost advantage method was designed to ensure that the vehicles were so hard a task for the competitor to copy and match what Toyota Company produced. This strategy has a number of benchmarks : the marketplace is always dominated by forms of price competition and very high sensitive buyers, there are many buyers and the bargaining power is in their reach, there is a low switching cost for customers, there are few ways to achieve product differentiation that has more value to consumers and the product in the industry is the same by all sellers. (Pearlson & Saunde

Common law and Civil law Essay Example | Topics and Well Written Essays - 750 words

Common law and Civil law - Essay Example The merging of these courts with the common law courts is thus what laid a framework for the present-day judicial system in America. The common laws subject all citizens to similar laws, regardless of their official ranks, or lack of. At the same time, the extent to which the government exercises its powers is dependent on the limitations of the common laws. Thus, the common law can be viewed at as a legal system development of the Anglo-Saxon people (Laeuchli, 2007). On the other hand, the civil system of law is dominant in the European countries that were former French or Spanish colonies. One of the contrasting differences between the common law and the civil law is that the former has a historical basis; they are a development of the custom. As such, they were in use even before they were put in writing, and people continued using them even after they became written laws (Dainow, 1967). In line with this, civil laws attempts to interpret doctrinal writings, as opposed to the application of facts, while dealing with legal fictions. At the same time, civil laws are based on detailed legal principles. Ideally, the methods

Comments(another one) Essay Example | Topics and Well Written Essays - 250 words

Comments(another one) - Essay Example Downsizing is in the true meaning the unemployment of people but the unemployed individual may believe that the company from which they were fired did not have a choice and this was a step which had to be taken. Other examples of newspeak are also seen in today’s world. For example, the spying technology which intrudes the privacy of others is justified by the government by explaining that this is an important step for the security of the people but in reality this is an encroachment into the personal space of others. Doublethink has also been correctly explained with the concept of cognitive dissonance put forward by Leon Festinger and it has further been strengthened in the paper with the example of persecution in the United States. Other examples of doublethink include immigration where on one side a person thinks that immigrants reduce the opportunities for the citizens of the country they migrate to. On the other hand, there is another perspective on this issue where a person is forced to think that these immigrants leave their homeland owing to serious problems and they migrate to a new place only with the hope of a better future. Therefore, immigration is a stand on which a person tends to have contradicting thoughts. Thus, it is a well-balanced paper which correctly defines the purpose of the concepts of newspeak and doublethink in the novel followed by examples which can be seen in today’s world for the two

Business Financing and the Capital Structure Research Paper

Business Financing and the Capital Structure - Research Paper Example Concept of working capital management Working capital management is fundamentally described as a managerial technique to preserve the financial health of a company in repaying its short-term debts and simultaneously, sufficing the need for short-term operating expenses. Advantages of working capital management can be viewed in terms of increased earnings of a company. Contradictorily, the conceptual framework is often criticised to offer only short-term financial planning assistances to the users. Notably, working-capital ratio and inventory-turnover ratio can be regarded as the two vital instruments to assess the viability of working capital management strategies applied by a company (Rehn, 2012). Financial instruments that are used as marketable securities to park excess cash Marketable securities are mostly favored by investors owing to their high liquidity benefits. In this regard, Treasury bills, commercial papers, bankers’ acceptances and other forms of government bonds as well as common stocks can be noted as the financial instruments used as marketable securities by investors to park excess cash (Chudson, 1945). Question 2 Selection of equities and debts to raise business capital depend on diverse factors, which mainly include the micro-economic performance of the economy and the liquidity position along with the risk taking ability of the company. Equities raise the liability of the company to repay investors, but only if the total liabilities of the company are accounted to be inferior to the assets held, i.e. when profit is obtained. Another advantage of using equities is that the interests paid by the company to its equity shareholders are accounted as an organizational expense, which further allows a certain percentage of tax leverage to the company. However, concerning the shareholders’ interests to invest in equities, various factors can be identified as disruptive (Komaromi, 2006). For instance, the purchase decision of equities of ten depends on the probability of business earning profits, and hence, investors tend to purchase equities when businesses are at their growth stage. Again, current fluctuations may also be identified to impose significant effects on the investors’ behavior towards purchasing equities. Concerning the current market scenario in the US, fluctuations can be apparently observed in the equities market, owing to its macro-economic volatility (Reuters, 2013). Therefore, a company must ensure its growth phase as well as preserve good liquidity position to market its equities and obtain adequate capital. On the other hand, debts do not involve uncertainty on the basis of investors’ decisions and behaviors. Therefore, businesses may not be required to ensure a growth phase while obtaining debts through short-term or long-term modes. It is worth mentioning in this context that although a business need not face the risk of uncertainty in capital allocation, it might require ensuri ng healthy liquidity ratio (Komaromi, 2006). Additionally, interest rate fluctuations observed in the current performance of the US may also have a negative implication for a company to opt for fund raising through debts. To be precise, the interest rates in the US are observed currently as rising and are further expected to rise in the near future, which might increase liabilities of the company deciding upon raising funds through debts (Conerly, 2013). Apparently, both the fund raising options have certain

Philosphy of education Term Paper Example | Topics and Well Written Essays - 500 words

Philosphy of education - Term Paper Example It helps in developing a world where justice, equality and standards of life are core principles to aid and guide humanity. The acquisition of education, however, requires a great deal of struggles form the individual. An educated person is the one who is civilized, morally enlightened and understands human dignity as a core principle which should not be compromised in any field. An educated society hence, creates certain implied duties on the individuals to work for mutual benefits leading to technological advancements, help each other to maintain peace in the society and maintain relationships to keep the learning track going. Plato’s theory of education explained learning as an ongoing process where learning develops with the growth of a person. He proposes that an individual’s learning continues from 6 to above 50 years of age. Learning, according to Plato, is a must to thrive in the society. In the same way I consider learning as an important and integral part of a person’s life which cannot be separated but rather a person should stay open to accept and follow new ideas, thoughts and issues.

No Research Paper Example | Topics and Well Written Essays - 1500 words

No - Research Paper Example These dogmatic traditional roles place women at a lower pedestal than the elevated platforms that their male counterparts proclaim so proudly. Despite all this discrimination, women have risen to overcome this uphill task through their in born strengths and power. I believe that women are strong, powerful, competitive and equal to men in all avenues of life and if provided with equal opportunities, they are bound to excel even where men have failed. The traditional traits that women are given include sensitivity, apprehension and warmth while in contrasting fashion, the men pose as emotionally stable, dominating, vigilant. These stereotyped traits are in essence transferred to their roles as women end up being viewed as having passive, caring and nurturing and subordination tendencies unlike men. Men on the other hand enjoy a stronger role that proclaims that they are strong, aggressive and dominating over women. However, these stereotyped views are not always reliable as it has been found that either gender has the ability to exhibit roles previously not associated with. As history has shown us, men can also be caring and sensitive while women have shown courage and dominance as is seen in leadership-oriented careers. However, the sexism differs in severity from one society to another as each society has its own values, systems and assigned gender roles. Since time immemorial, art has been used to represent and paint the society as it is. As forms of art, films have been used to advocate for, against or even to represent various aspects in society. Films have been used to depict the rot and evil in society, celebrate the good and righteous and also to issue warning against trends that might affect society in the future. The same principle applies to the acclimated trio of timeless classics: Metropolis, Alien and 2001: A Space Odyssey that in their own unique ways

Air Quality Essay Example for Free

Air Quality Essay 1. Identify and describe the nature of this issue, the spatial and ecological dimension? Air quality is a measure of the amount of pollutants emitted into the atmosphere and the dispersion potential of an area to dilute those pollutants. It is a massive problem of urban living and remains one of the largest environmental concerns. Spatial dimension relates to how air quality differs between places at different times and under different weather patterns. Increasing population and demand for more goods puts greater pressure on air quality. The human population’s interaction with the environment relates to the ecological dimension. In terms of air quality this relates to the impacts of increased gases and particles associated with transportation, industrial activities, smoking, dust storms from over grazing on marginal land, bush fires and the burning fossil fuels. Many of these activities cause increases in carbon monoxide, ozone, sulphur dioxide, nitrogen dioxide, lead and particles in the atmosphere. People get health problems due to these increases. For example, excessive carbon monoxide levels in the blood stream reduce its ability to transport oxygen. This in turn causes headaches and tiredness. 2. Explain the geographic processes causing the issue Humans are exposed to a number of pollutants , air toxics and particulate matter in the air we breathe and live in. A number of organisations have worked on standards that identify those levels that are safe and those that are not and how these impact on a human’s well being. Pollutants are substances which at high enough levels can cause harm to people and the environment (including plants and animals). Things like sulphur dioxide is from coal, oil burning power stations, mineral ore processing and chemical manufacture. With Sulfur dioxide health issues like the throat and lungs are attacked. People with breathing problems can suffer severe illness . Nitrogen dioxide Is caused from fuel combustion. The throat and lungs are affected with increased levels in the atmosphere. The burning of fossil fuels and motor vehicle emissions increase carbon monoxide levels. Excessive carbon monoxide levels in the blood stream reduce its ability to transport oxygen. This in turn causes headaches and tiredness. Volatile organic compounds are caused by combustion of fuel, motor vehicles and solvent use. With increased levels of VOCs skin irritation, eye irritation and nausea may be caused. It can also be a cancer causing issue. Ozone is formed from nitrogen oxides and hydrocarbons in sunny conditions. It is also released by motor vehicles and industry. The tissues of the throat, lungs and eyes may be irritated. Increased lead levels are as a result of exhaust gases from motor vehicles that use leaded petrol, as well as emissions from smelters. In lead it can get into your lungs and go into your blood stream. It can affect you by shutting down your nervous system and the body will stop producing blood and you will die. Motor vehicles, burning of plant materials and bush fires increase levels of particles in the atmosphere. Breathing difficulties and respiratory diseases may worsen. Some particles may contain cancer causing agents. Air toxics are pollutants that are also hazardous to humans. Air toxics are hydrocarbons and heavy metals. They are of high concern when emitted close to the source. Examples include at industrial sites and heavily used roads. There is a connection with high levels of air toxics to cancer, birth defects, genetic damage and respiratory and nervous system disorders. Particles are liquids or solids found in the air. They can be natural substances all those from fuel burning processes. The most damaging particle is known as PM10. This is due to the fact it can stay in the atmosphere for long periods and also be carried large distances is has been known to increase death rates in areas of high concentrations. 3.Outline some contrasting views of different groups involved in the issue? A major issue associated with air quality is related to traffic congestion. Traffic congestion in Sydney has forced roads to go underground in tunnels. Exhaust fumes are then sent above ground via ‘stacks.’ These stacks are of major concern in the areas where they are located, in particular for the health of humans and animals, as well as the environment. The M5 East tunnel, in particular, has had strong feelings from a number of groups. Originally 3 stacks were to be built on high ground to rid the tunnel of fumes. There were many people against this, so only one 35 metre stack was built without a pollution filter. Some contrasting views are summarised below, from a number of groups: Residents against pollution stacks: (RAPS): Protest, court cases, inquiries, petitions and letters have been written to voice concern about pollution, but little has been done. This group believes they are unhealthy, expensive to run and that the government is not caring about the publics health and safety. Minister for roads (state parliament 2006): The Minster believes that the public’s health is not at risk, because of fresh air is put into the tunnels and air quality levels are always met. He believes standards are constantly monitored and that it is well used by motorists. DR Raymond Kearney- associate professor in dept. of Infectious diseases/Immunology: Acess to clean sir is a human need and right. Your lungs me a barrier between the outside world and your body, the tosic substances from the air that is leaving the tunnel and the air that is in side the tunnels reaches your body via the lungs. The burning of petrol, diesel is one of the most toxic sources.

Ryanair Business Strategy: Internal and External Analysis

Ryanair Business Strategy: Internal and External Analysis Ryanair:  Case Analysis Report Introduction Ryanair, established in 1985, is considered the main instigators of the â€Å"low cost â€Å" airline carriers, creating a new niche in a market previously dominated by former national airlines such as BA. The company has grown to a position where in 2005 it has 15 bases and 150 aircraft operating throughout Europe, carrying thirty million passengers (see figure 1), with a five year target to increase this to seventy million (Ryanair 2007). This position has been achieved by creating a â€Å"no-frills† approach on price (Pettigrew et al 2002), which gave it a competitive advantage over the established airlines (Porter 2004, p.207 and Kotler et al 2004, p.407), although attempts to extend this to include charging for ice used in in-flight drinks (Creaton 2004, p.169) was rescinded after customer complaints. The objective of the business is to become Europe’s leading â€Å"low-cost† airline and first for customer service, the latter position which was first reached in 2002 according to independent sources (see appendix A, figure 3). Similarly, the company also seeks to maintain value growth for shareholders. External Analysis Liberalisation of the airline industry in the 1970’s opened up the industry to new entrants and a new business model. Being one of the â€Å"first movers† in this new sector (Faulkner and Campbell 2006) Ryanair has taken advantage of the growth opportunities offered by creating a â€Å"low Cost† model based on the successful Southwest Airline (2007) strategy. This move has been partially responsible for increase in passenger numbers using UK airports in the last three decades (see table 1), with expectations of a threefold increase by 2030. Table 1 Airline passengers Year Passengers (m) 1980 50 1990 90 2000 180 With former eastern bloc countries converting from communistic to democratic political structures this growth is set to continue, providing the business with further opportunities (see appendix A, figure 4). Many of these former Baltic States have now joined the EU, which also provides Ryanair with the opportunity of expanding its destination network. However, the industry growth has also seen new competitors enter this niche market, including EasyJet, BMI, Virgin express and Aer Lingus. To maintain its competitive advantage the two major players have sought to consolidate their position by strategic acquisitions. In this area Ryanair, with its successful acquisition and integration of the â€Å"Buzz† lo-cost carrier, has been more successful that EasyJet’s experience when acquiring â€Å"Go.† Although the major airlines such as BA have responded to threats from Ryanair, to date these have not proved successful. The creation of this niche industry sector has also led to significant changes in the consumer’s perception (OConnell, J., and G. Williams 2005). Demands for cheaper fares has increased as prices have fallen, and the consumer perception and lifestyle has changed with regard to types of holidays has expanded rapidly, with weekend breaks and formerly unknown destinations increasing in popularity. Ryanair has also made full use of the advances in technology and digital processes within its â€Å"low-cost† business model. It was one of the first â€Å"low-cost† airlines to recognise the changes in the consumer buying habits resulting from these technological advances, using this diffusion to improve its services, encourage further consumer change and continue cost reduction advantages (Johnson et al 2007, p.481). Evidence of this can be found in the business move to paperless tickets, with more bookings being made through the Internet and, more recently, a move towards automated booking–in procedures at the airport, reducing the need for expansion of human resources to meet demand increase. At the same time, this technology use also helps Ryanair to maintain one of its key corporate objectives, which is to return success and value to the shareholders. There are two other external factors that impact upon the business and affect the determination of strategy. The first is environmental issues., which includes the concerns expressed by consumers and governments relating to the impact that air travel growth has upon the local communities and infrastructure and the second is the natural environment, where businesses are now required to consider the impact that their operations have upon issues such as climate change. The second issue is in the increase of legislation, particularly from the EU. In this respect Ryanair operations have to comply with regulations in terms of fair competition, which affects mergers and acquisitions and unfair practices, and targets set by the EU in relation to emission reductions required to address climate change.[PL1] Internal Analysis As Lynch (2006) and Faulkner and Campbell (2005) stated within their respective researches, for organisation’s such as Ryanair, who have targeted their strategy at a â€Å"low-price† product, it is imperative that, to maintain competitive advantage, who submitted that to achieve and maintain low price in the market place, the business itself had to be structured in a way that provided a limited cost base throughout all aspects of the business, in order to retain a profitable result. Porter (2004) suggests that this cost reduction process has to be communicated throughout the value chain (see appendix B, figure 6). Michael O’Leary, and the Ryanair management team have strived to achieve this position through a number of measures. Use of resources Ryanair makes good use of its resources. For example, all of the aircraft are of one design, the Boeing 737-800 series. This has several positives. Firstly, the company receives a discount from Boeing. Secondly, It reduces costs in terms of maintenance and training. In the latter case, unlike EasyJet, which has to train pilot and cabin crew to operate on a number of different aircraft designs, Ryanair’s staff only have to familiarise themselves with the one. Similarly, the turnaround of aircraft at destinations is quick and efficient, thus reducing unit cost. Human resources Despite the number of routes operated and the logistical problems of running a business of the magnitude of Ryanair, the company operates with a minimalist attitude towards head office, admin, aircraft and maintenance crews and administration staff. At the end of the 2005 financial year the business employed around 2,800 personnel, a figure which has changed very little over a five-year period. All of the Ryanair employees are expected to multitask. For example, cabin crew are required to clean cabins and remove rubbish between flights. Technology As mentioned earlier, Ryanair computerises as many services as possible. With Internet booking, paperless tickets, automated booking-in processes and many other parts of the operations being streamlined in this manner, this ensures that production and other costs remain low. Destinations Another imp0ortant aspect of the Ryanair cost reduction strategy is the concentration of its destinations into secondary rather than primary airports. Landing fees and other charges at these airports is substantially lower than the main airports and, even with the â€Å"sweetners† paid by Ryanair, the unit costs per passenger of flight into these destinations remains cheaper. Travel format Finally, the product itself has been simplified. There is only one class on a Ryanair flight and no pre-booking of seats. Furthermore, virtually everything but the seat costs. This includes drinks, meals and the other retail products available on board, with even free levels of baggage is limited. The success of this strategy can be evidenced when comparing the met profit margin of Ryanair with other carriers. The following data, taken from the various organisation’s websites and financial statements show the differnce (see table 2 below): Table 2 Net profit percentages Company Percentage Ryanair 17.81% EasyJet 7.98% British Airways 7.28% Diagnosis of current challenges However, like all businesses, Ryanair is not immune from challenges as it moves into the future. From the analysis of the business operations it is apparent that these challenges and threats will come from five main areas (appendix A, figure 4). Competition As mentioned earlier, with the emerging democracies within Europe, together with the regional and global harmonisation of competition rules, Ryanair is likely to find increased competition developing from these areas within the next few years to a decade. With the increased market place and, as can be seen from the share of the market that low cost airlines have (see figure 2), there is ample scope for new competition. The discussions about the â€Å"open skies† agreement between the EU and US (Milmo and Gow 2007), if these come to fruition, will also pose a threat as it creates a potential for US airlines to enter the industry sector. These actions could adversely affect the business continued financial success. Consolidation and growth There has already been some consolidation within the sector. It is likely that this will continue for the foreseeable future, and this could pose a threat to Ryanair’s dominant position. Furthermore, the corporations own growth pattern could impact negatively upon profitability. Despite growth attracting economies of scale, it can involve additional costs that threaten efficiency (Creaton 2004, p.250). Political intervention There are three main aspects of political intervention that are like to affect Ryanair in respect of its future development within Europe. The first of these relates to the EU’s competition laws, which is an area where Ryanair has come into conflict with the commissioners in terms of payments being made to secondary airports and other similar issues (BBC News 2004). The second is the threat by the EU to reduce or eliminate the subsidies given to the sector, worth an estimated  £6 billion annually (Bized 2004). This includes report, this VAT, Landing and Fuel tax benefits. The removal of these benefits will have a significant impact upon profitability. The third issue is the EU intention to force budget airlines to pay compensation for cancellations, which is not done at present. Environmental issues One of the major issues is the environment. Following the EU adoption of the IPCC[1] report recommendations, focus has been concentrated upon setting emissions targets for airline industry player, with stringent targets being set (see table 3). Future strategic options All researches promote the need for corporations to ensure corporate strategy addresses future challenges (Lynch (2006) and Faulkner and Campbell (2006)). In Ryanair’s case, it is suggested there are three strategic options that could be adopted (see appendix C, figure 7). Low price – low added value The aim of this strategy is to achieve the lowest price by a process of continually reducing the additional elements that attach to the service. For example, in terms of the budget airlines, from the consumers’ viewpoint this has meant reducing the facilities offered in-flight, such as changes to the quality of seating, increasing the seating capacity on the aircraft and reducing choice of services that involve human resources, such as hot meals, snacks and drinks. For the business is requires a continual drive to continue cost reduction throughout the value chain. Low price The intention of the low price strategy per se it to achieve reduction in the cost of fares, whilst retaining the consumers’ perception of the value of the product. To implement this strategy means that the business will need to seek cost reductions in areas other than those that directly impact upon the quality of the in-=flight service provided. This could be achieved by the further use of technology to automate in additional areas of the operational processes. Focused differentiation A strategy if focused differentiation is intended to set the business product apart from that of its competitors. Price can be used in the differentiation process, but in this case it needs to be inclusive with other elements that make the product unique. Evaluation of strategic options Following an evaluation of these strategic options, using the criteria recommended by Rumselt (see appendix D, figure 8), the following is an outline of the results that this produced. Option 1 – Low price – love value added This strategic option is consistence with the policy that Ryanair has followed in the past and is in accord with the previous intentions of the business strategy, which has been to reduce price at the cost of services, in other words achieving a â€Å"no frills† situation. However, it would seem that Ryanair would find it difficult to further reduce the level of service provided to its customers and it is unlikely that this approach would secure its market position. Option 2 – Low price Low price, as with option one, is in line with the business existing strategy. However, from the analysis of the internal situation at Ryanair, it would seem that there are limited options in terms of reducing existing resources, particularly if the business wishes to maintained a sustained growth programme and market share. Furthermore, it is not in accord with external trends, which indicates that consumers are becoming more discerning and the political arena more concerned with the consumers’ rights and environmental costs. Option 3 – Focused differentiation Focused differential, which could still include low price, would also be consistent with the Ryanair strategy. The differential of â€Å"low price, no frills† has been the core differential upon which the business has promoted itself previously. However, with other competitors entering the market place, that differential needs to be extended to other areas. In summary therefore, it is felt that the focused differentiation option would be most appropriate for the business future and will assist it to retain and improve its competitive advantage. Overview of selected strategy The core elements of the proposed â€Å"focused differentiation† strategy being proposed will be threefold. Free flights An aggressive strategy aimed at achieving free flights to be pursued. This can be achieved by seeking third party turnover to replace the ticket cost. For example, the business could introduce sponsoring, where travel and venue destinations, such as holiday locations, theme parks and local tourist boards pay for flights. Similarly, in-flight facilities could be introduced, such as Internet shopping, gambling and pay to view telephone. Furthermore, other services such as car rental and insurances could be used to cover the lost ticket revenue. Consolidation The business should be looking to make acquisitions, particularly with organisations within the Eastern European countries that have recently joined the EU. This enables the business to achieve market growth and maintain its dominant position. It also reduces the future competition. Aircraft fleet Fleet replacement is an area that Ryanair has concentrated upon in the past. In the future, in addition to discounts, this should be linked to conditions that ensure the fleet includes the latest environmentally friendly specifications, with aircraft being regularly upgraded as part of the purchase options. Implementation plan To enable the selected strategy to be implemented, several courses of action need to be undertaken. Short term Moves towards a â€Å"free-flight† position can be commenced within the immediate future, with the management and marketing departments of Ryanair discussing this concept with potential sponsor from the commercial leisure world, as well as tourism boards within the region and in specific destinations. Medium Term In the medium term two actions required for the strategy can be undertaken. The first of these is the gradual refits that will be required to aircraft to include the various new technological facilities that have been recommended. The second action would be to assess the potential market players to ascertain which, if any, would provide the business with a strategic fit for expansion of its market reach within the region. Long term Contracts with Boeing need to be re-negotiated to ensure that environment related conditions are included as an inherent part of the purchase process for replacement aircraft. Conclusion There is no doubt that Ryanair faces a number of key challenges in the future. To ensure that the business can successfully deal with the changes these challenges present, it is important that the future strategy is sufficiently robust to be able ensure that the business retains its competitive advantage and profitability levels. The aggressive strategies recommended within this analysis study are designed to achieve this objective. The â€Å"Free-flight† with added services, albeit being paid for, will maintain the unique and differentiated service that the Ryanair brand has become known for. Bibliography BBC News (2004). Ryanair faces new payment probe. Retrieved 17 May 2007 from http://news.bbc.co.uk/1/hi/business/3458423.stm Bized (2004). Low Flying Fares: An End to Cheap, No Frills? Retrieved 27 July 2007 from http://www.bized.co.uk/current/leisure/2003_4/010304.htm Brassington Frances and Pettitt, Stephen (2006). Principles of Marketing, 4th edition, Pearson Education Ltd. London, UK Channel 4 News (2007). If you care about the environment, you should fly Easyjet. Really? Retrieved 16 May 2007 from http://www.channel4.com/news/articles/society/environment/factcheck+how+green+is+easyjet/509642 Creaton, Siobhan (2004). Ryanair: How a Small Irish Airline Conquered Europe. Aurum Press Ltd. London, UK. De Groote, P.D (2005). The Success Story of European Low-Cost Carriers in a Changing Airworld. GaWC Research Bulletin 174. Retrieved 27 July 2007 from http://www.lboro.ac.uk/gawc/rb/rb174.html Doganis, Rigas (2000). The Airline Business in the 21st Century. Routledge. London, UK. Faulkner, David and Campbell, Andrew (2006). The Oxford Book of Strategy: A Strategy Overview and Competitive Strategy. New ed. Oxford University Press. Oxford, UK. Haslam, Chris and Ungoed-Thomas, Jon (2007). Ryanair denies baggage ‘scam’. The Times. London, UK. Johnson, Gerry., Scholes, Kevan and Whittington, Richard (2007). Exploring Corporate Strategy. FT Prentice Hall, Harlow, UK. Kotler, Philip. Wong, Veronica., Saunders John A and Armstrong, Gary (2004). Principles of Marketing, 4th European edition, Pearson Education Ltd. London, UK. OConnell, J., and G. Williams (2005). Passengers Perceptions of Low Cost Airlines and Full Service Carriers. Journal of Air Transport Management, 11: 259-272. Porter, Michael E (2004). Competitive Strategy: Techniques for Analysing Industries and Competitors. The Free Press. New ed. The Free Press. New York, US. Press association (2007). Budget airline offers low cost New York flights. Retrieved 17 May 2007 from http://www.which.co.uk/reports_and_campaigns/travel_and_leisure/reports/holiday_advice/Flights/zoom_flights_news_article_557_112479.jsp Report (2007). The Environmental Effects of Civil Aircraft in Flight. Royal Commission of Environmental Pollution. 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Retrieved 17 May 2007 from http://ec.europa.eu/comm/competition/speeches/text/sp1999678_en.html Appendix A – external environment Figure 4 Pestel analysis Political Airline liberalisation Extension of democracy in EU Open skies policy Economic Internal financial performance Disposable income Abolishing of international tariffs Competition Acquisition Social Consumer attitudes Brand image Lifestyle and travel changes Technological Automatic booking in systems Online activity Change in consumer buying habits Environment Investor added value EU and international environment concerns Legal issues European legislation Environment regulations Competition rules Figure 5 Opportunities and Threats Opportunities Threats Growth of network Increased competition Growth of passenger numbers Industry consolidation Maintenance of cost reductions Political intervention Continuing price reductions (free?) Environmental issues Expand cooperation between â€Å"Low cost† carriers Further acquisitions Appendix B – Internal environment Figure 6 Value Chain Source: Porter (2004) Appendix C – strategic options Figure 7 The strategy clock Source: www.marketing teacher.com Appendix D – evaluation criteria Figure 8 Rumelts evaluation criteria Consistency Are the external strategies consistent with (supported by) the various internal aspects of the organization? You must examine all the various functional and internal management strategies employed by the organization and compare them with the external business strategy. Consonance Are the strategies in agreement with the various external trends (and sets of trends) in the environment? To answer this questions, you need to look at all the major trends that impact the selected strategy both positively and negatively. Feasibility Is the strategy reasonable in terms of the organizations resources? Money and capital Management, professional, and technical resources Time span Advantage Does the strategy create and/or maintain a competitive advantage? Resources Skills Position Source: Johnson et al (2007, p.593) 1 Footnotes [1] Intergovernmental Panel on Climate Change [PL1]1