Bmw Drives Germany Essay Example

Bmw Drives Germany Essay International Business BMW Drives Germany By Peter Gumbel Assignment by Matthew Jackson Table of Contents: Page 1. Assignment Cover Sheet3 2. Question Summary4 3. Question 15 8 4. Question 2 9 10 5. Question 3 3. 111 13 3. 214 16 6. Question 417 19 7. Bibliography20 – 23 8. Appendix A24 9. Appendix B25 Surname:Jackson First Names:Matthew William Student Number:102531 Subject:International Business Assignment Number:One Date Submitted:2008. 06. 12 Submission:Second Postal Address:PO Box 704 Shelly Beach 4265 E-mail:matthew. [emailprotected] co. za Contact Numbers:W039 315 0151 H039 312 0055 Cell0832834460 Course/Intake:MBA Year Two – January 2008 I hereby declare that the assignment submitted is an original piece of work produced by myself. Matthew Jackson 75122350090882008. 06. 12 Question Summary Sheet 1. Evaluate the shift in BMW Germany’s attitude and policies toward FDI. Discuss using relevant theory what you have identified as being the driving force behind this change in attitude and policy. 2. Explain the benefits to the German economy in BMW’s decision to maintain and improve its manufacturing operations in Germany. 3. If BMW wanted to extend its manufacturing operation into a developing Southern African country, explain what your recommendations would be to their CEO with regard to: 3. 1: Factors to consider prior to the formulation of a global strategy? E. g. Culture, Negotiation, etc. 3. 2: The strategy that BMW should utilize. Justify 4. Analyze the Global Competitive environment in which BMW operates and rank their position in the industry. Question 1: Evaluate the shift in BMW Germany’s attitude and policies toward FDI. Discuss using relevant theory what you have identified as being the driving force behind this change in attitude and policy. We will write a custom essay sample on Bmw Drives Germany specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Bmw Drives Germany specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Bmw Drives Germany specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Introduction The Policy towards FDI mentioned at the start of the article by Gumbel (2007) was heavily influenced by the local economic conditions in Germany at the time. Exorbitant labour costs, unbending union rules and Administrative Policies all influenced BMW to investigate solutions for their local economic stagnation from mostly Oligopoly conditions of most companies in the saturated European Market. BMW had to find solutions elsewhere. Theory and analysis Duthmann et al. (2006) reports that Labour costs are traditionally expensive in Germany. This view is supported by data from Appendix A. It was compounded by the re-unification of East Germany and the Government needed to find a solution for Unemployment. BMW used the strategic advantage that these unemployed East German Automotive workers at Leipzig were providing, while helping government lower unemployment through FDI. Lowering that aspect of the inputs to the value chain had injected profit to BMW’s earnings. The Leontief Paradox states that countries that are abundant in capital should be exporters of capital intensive goods, and import labour intensive goods. These imports did not relieve the strain on domestic labour intensive industries. The Leontief Paradox disputes the Heckscher-Olin theory on the point that Factor endowments can be impacted by Government Policy. BMW is a good example proving that this paradox exists. Government intervention into labour rights, the shortened work week and East German re-unification problems caused excessive pressures on high labour costs. This directly caused BMW to shift their focus on investment elsewhere, to achieve cost reduction. The Benefits that Germany enjoyed from allowing BMW to pursue their FDI efforts are related to their resource transfer effect, their employment effect, their balance of payments effect and their effect on competition and economic growth. Specific parts for the leather seats and cockpits of BMW’s are manufactured by Fauracia. The natural resource leather is of better quality. The parts do not have to be trucked in as finished parts, thus incurring transportation costs, customs and import duties, and can be assembled on-site, providing immediate service support if needed. All these resources are transferred from elsewhere and do not need to be consumed and provided by Germany. Allowing FDI from Daimler-Chrysler and Fauracia allows technical resources to lower the intellectual capital drain needed in Germany, and this resource can be better utilized in other sectors. Costs involved in Research and Development of individual parts needed in assembly then stays with the host nation and not Germany, and lowers costs for BMW. FDI effect on competition and economic growth in Germany relates to the Competition created by the rivalry between Daimler-Chrysler and BMW. This especially affects service industries such as Management and these services have to be delivered in Germany where the cars are produced. Radosevic and Rozeik (2005) reports on the Cluster in the Central European Economy, and the clustering of supplier networks. BMW made the same decision regarding the supply of some of their parts to reduce costs. Hill (2007) discusses Porters â€Å"Diamond Model† for the determinants of National Competitive Advantage. He is of the opinion that Governments influence the four determinants. To evaluate whether Germany’s attitudes and policies towards FDI where effective, we need to investigate the effects the FDI decision had on factors of production, such as skilled labour and infrastructure, on demand conditions (sophisticated customers in home market), related and supporting industries, and firm strategy, structure and rivalry (conditions for organization of companies, and the nature of domestic rivalry) Factor conditions were influenced in Germany at that time through their policies towards capital markets. The Business Times(2008) reports that Germany has the most transparent banking System in Europe and is of the opinion that their high personal income tax rate will cause money to ultimately flow to Southeast Asia or Central America if they do not change it soon. Gumbel (2007) also states that the skepticism of Anglo-Saxon capital finance hampers the capital market even though Germany is supposed to draw advantage from the unified European economy. Although hedge funds exist to help subsidize growth within the European Union (EU), Germany wants to curb their power so that individual local economies within the EU may be stimulated. Germany has themselves provided money through the private sector, even though the unification with East Germany took a lot of investment to develop again. This decision can thus be evaluated as a good stimulant for domestic macro-economic growth. Porter (1980) note that local government usually shape local demand conditions in more subtle ways. Local Product Standards have always been high in Germany, and regulations for buyers needs are strictly controlled. The shift towards FDI will fit in with this advantage. Gumbel (2007) alludes to the fact that Germany has always invested heavily in their Automotive Industry through subsidizing related and supporting industries via their traditional engineering prowess. BMW moved Faurecia, the company that builds their seats and cockpits, on site to create a backwards Vertical FDI. This accelerates the shared value chain activities, and co-ordinates supportive industries. The cutting of Transportation costs by moving Faurecia on site allowed the special conditions created by mass customization to be solved even though the cockpits assembled generally have a high value to weight ratio. BMW organized their firm structure as Porter’s Diamond Model suggested they should through using management structures that are technically trained and allows for hierarchical methodical product and process improvements. This can be seen in their Mass Customization program that has bee the life line of their current success. The Domestic Rivalry between BMW and Daimler-Chrysler Mercedes-Benz has also traditionally been responsible for the continual product innovation at BMW. This resulted in the drive to reduce input costs to the Value Chain and improve quality of their product through automation and use of robotics. FDI was one of the sources BMW identified that provides innovation, lower costs and better quality. It is also the collusion with Daimler-Chrysler to develop new hybrid engines that gives them new technology. This can only be beneficial to both companies through the use of FDI. Discussion FDI was a good solution to take advantage of factor conditions such as great technical resources, already existing Research and Development infrastructure, Germany’s good banking system, and strong local capital investment policies, the unified Euro. Demand conditions such as High local quality in product standards, the technically trained management firm structures inherent in most German organizations, and the longstanding domestic rivalry with Daimler-Chrysler Mercedes, have all created and environment where FDI became the logical solution to the challenges they faced. The Macro-economic consequence of the Foreign Direct Investment allowed Germany to lower unemployment without allocating part of the Gross Domestic Product to improve it. FDI created jobs specifically for the unemployed East German automotive industry workers in Leipzig. The Balance of payments effect allowed Germany to have a growth rate of 2. 8% last year. This allowed net exports of $200 Billion, of which BMW showed on their own balance statement healthy revenue of $65 Billion. This was achieved by establishing FDI to be a substitute for imports of goods or services and thus on a continual basis will improve the current account of Germany. Conclusion The close relationship of Porter’s Model of determinants of comparative advantage to the FDI decision was discussed. This showed the accuracy of FDI in providing a head-start in the Market. When the positive effects of BMW’s FDI decision is measured against the macro-economic benefits it provided, it must be evaluated that it was a correct decision. Question 2: Explain the benefits to the German economy in BMW’s decision to maintain and improve its manufacturing operations in Germany. Introduction Amdam, Lunnan and Ramanauskas (2007) has the opinion that strong domestic customer relations demanding change, or strong innovative domestic competitors are more forceful change agents than those that are located in other countries. Maintaining and improving the manufacturing operations in Germany may also have to do with the competitive presence of competitors like Daimler-Chrysler. The benefits to BMW to concentrate manufacturing operations or decentralize will be discussed. Hill (2007) discusses that concentration of production makes sense when trade barriers are low, differences between countries in factor costs, political economy, and culture have a substantial impact on the costs of manufacturing in various countries, externalities arising from the concentration of like enterprises favour certain locations, important exchange rates are expected to stay relatively stable, the production technology has high fixed costs and high minimum efficient scale relative to global demand, or flexible manufacturing technology exists, production value-to-weight ratio is high and the product serves universal needs. Alternatively, decentralization of production takes place when differences between countries in factor costs, political economy, and culture do not have a substantial impact on the costs of manufacturing in various countries, trade barriers are high, location externalities are not important, volatility in importantant exchange rates is expected, the production technology has low fixed costs and low minimum efficient scale, and flexible manufacturing technology is not available, the products value-to-weight ratio is low and the product does not serve universal needs. BMW would concentrate production, since the factor cost of Oil, Electricity and Minerals for automotive production is easily influenced by political decisions. The concentration of automotive manufacturing in Germany, and the high fixed costs, the high value-to-weight ratio and the product serves universal needs. There are certain factors which make the case for decentralization. Trade barriers are generally high with automotive manufacturing, since entry to the market is restricted by technological barriers, high start-up and input costs and the volatility of important exchange rates, specifically the Brent Crude Oil Price is expected. There are therefore more benefits to concentrating, rather than decentralizing. Hill (2007) states that reducing economic exposure requires strategic choices that goes beyond the realm of financial management. The key to reducing economic exposure is to distribute the firm’s productive assets to various locations so the Firms long term financial well-being is not severely affected by changes in exchange rates. This point towards decentralization, but since the Euro is a strong currency, it is hedged against volatility more than the benefit of lowering foreign exchange risk. This may be because most Factors of Production, and the other determinants of Porter’s Diamond Model, already exist in the robust German Domestic Economy. This also explains why there is no drive to move productive assets elsewhere. Dunning’s Eclectic Approach demands that Ownership advantage needs to be backed up by Locational Advantages from factor endowments. BMW may feel that those markets can still be served with exports. This is consistent with the economic theory of positive income elasticity for luxury products. Porter’s Diamond Model also confirms the benefits of local demand conditions, the importance of related and supporting industries, and the domestic rivalry with Daimler-Chrysler. Conclusion It benefits BMW’s research and Development from the stimulation of technological advancement from domestic rivalry. The streamlining of value chain activities through keeping Just-in-time production as fast as possible, it offsets the delays possibly caused by mass customization. Keegan (1999) as quoted in Hill (2007) state that by reinforcing positive determinants of competitive advantage in an industry, government can improve the Competitive position of a nations firms. This does not have a negative effect on the balance of payments for Germany and actually helps the GDP grow by lowering unemployment and increasing exports. If BMW wanted to extend its manufacturing operation into a developing Southern African country, explain what your recommendations would be to their CEO with regard to: Question 3. 1: Factors to consider prior to the ormulation of a global strategy? E. g. Culture, Negotiation, etc. Introduction Ling and Miller (2003) states that when individuals conduct business across national borders, they often bring to the negotiation table diverse cultural predispositions in which they interact with another. For BMW to successfully negotiate extending its manufacturing operations, it needs to understand the South African culture of Ubuntu. Hill (2007 ) suggested that there is a checklist of various cultural dimensions that can provide a cultural review prior to entering into Foreign Direct Investments. These are Nature(control, harmony and subjugation), Time(monochronic or polychronic), time(past, present or future), Action(doing or being), Communication(low or high context), Space(private or Public), Power(equality or Heirarchy), individualism or collectivism, competitiveness or co-operation, structure(high or low) and Formality(formal and informal). We will discuss the application of each of these to South Africa. Discussion The traditional African culture puts high value on Nature, and that we need to care for our environment. Africans believe that we are subjugate to the fate of nature and we are only part of it. BMW instituted stringent emission limitations on their products since the Kyoto protocol, at the World Summit in Johannesburg, South Africa in 2002. They also built the Earth Lounge in Sandton, South Africa to display the contribution they make to sustainable development. Africans believe that activity supercedes time, which is polychromic, propicious, circular and that human beings are more important than time itself. Tradition from the past, is very important to an African, and it is more important than the immediate conditions of the present or the progress of the Future. Being a good person in the community is much more important to African people than doing things. This extends to treat even strangers as extended family, thus one’s child is the community’s child. Africans are direct in their communication, since they live in community they do not place higher value on the individuals words and manner than the collective. The only cultural body language that is significant in this context is the custom for a visitor to sit down before ant communication even takes place. Hurn (2007) advises that the pace of negotiations needs to be slow when done in low context though, and directness is essential, since Ubuntu sees not coming to the point as dishonesty. Public space is allocated before private space, and Ubuntu demands that there is minimal private space, and all resources should be shared. Equality is very important to Ubuntu, since all are equal. The only hierarchy exists amongst those who allocate resources to the collective, like traditional chieftains, or political representitives. Not co-operating with the needs of the whole community, sharing its resources in the Zulu culture traditionally led to death for the individual. Informal relationships and social structures prevail in Ubuntu, since being formal is a sign of rejection of the community and its values. Building social relationships, sharing in the customs of the local tribes or giving of gifts to the community shows this support. Evidence of using this cultural experience can already be seen in the BMW SEED Programme that was initiated in 1996. It is aimed at awakening in our youngsters an interest in the environment by sponsoring planting seeds, and supports outcome based education, augments feeding schemes, develop entrepreneurial skills amongst learners and create environmental awareness through behavioural change. Rodrigues (2001) is of the opinion that decision making in the African Culture is by consensus, and this process is circular providing feedback to ensure better decisions made for all in the future. This view is supported by Tay (2007) who believes that this has been the key factor amongst the Japanese automotive industry’s success Conclusion Pursuing a global strategy for BMW to extend their manufacturing operation to South Africa, must include sensitivity to reaping cost reductions from experience curve effects and location economies. This exploitation can only occur in the Ubuntu context, if the company has done all it could to be seen as part of the community, or providing resources to the community’s needs. Negotiation for BMW would thus need to include a proper needs analysis of the local community, an accurate transaction cost analysis including the non material benefits proposed to be provided, like education, providing housing and food. Question 3. 2: The strategy that BMW should utilize. Justify Introduction Hill (2003) discusses the four basic strategies to enter and compete in the international environment. They are an international Strategy, a multi-domestic strategy, a global strategy and a transnational strategy. The mode of entry into this market must include alleviating pressures for cost reduction, and transferring of Management and Technical know-how. We will discuss how the transnational model and wholly owned subsidiary as entry mode is the best strategy. Discussion BMW cannot pursue a multi-domestic strategy, since it cannot without high costs replicate their entire value chain. Strong local autonomy would make them lose control over the benchmark of quality that has become their brand identity. The weakness from a pure global strategy is that BMW will lose the ability to customize their products. This mass customization as reported by Gumbel (2007) was the very reason for their profits in recent years. Cost reductions from the underlying experience curve also causes economies of scale in the international strategy. Previously the attempt to transfer innovation is a good strategy for any multinational company investing in a developing country. BMW traditionally has followed this strategy, where the Head Office in Munich controls Research and Development, technology, processes and marketing. Marketing Functions and manufacturing plants can under this strategy be set up in major business countries. Gumbel (2007) reports that the shift away from Germany as a head Office towards a true Transnational strategy. Research and Development are now partnered with Daimler-Chrysler and Peugeot in developing new engines outside of Germany. A transnational strategy would allow for the following advantages: It exploits the experience curve effects BMW has built up over years of technological innovation. Location economies now allow BMW to cut high labour costs, and the cost of steel. BMW should use their FDI to utilize the abundance of cheap labour conditions. They could negotiate with the South African Government to help lower unemployment, improve education skills through apprenticeships. Jenkins and Thomas (2002) reports that in manufacturing, rising capital intensity and improved productivity may limit the benefits of FDI in terms of ongoing job creation in South Africa. It is therefore essential that BMW provides ongoing job creation as a guarantee when negotiating with South Africa for FDI. The Budget of 2008 has made several tax concessions around the skills levies imposed on the South African Tax Payer. BMW should take strategic advantage of these conditions. The benefits of FDI for a country like South Africa are seen as flowing mainly from externalities generated by technology transfer They should use the supply side support measures mentioned by Streak and Dinkelman (2000) to lower their supply chain input costs. BMW should invest in local infrastructure fro Manufacturing processes, because it combines both the lower labour costs and lower input resources required. It will also be lucrative for South Africa, since the FDI now allows exports from South Africa, adding to the health of the domestic economies balance of payments. The strategy BMW should follow must include a proper analysis of both their internal strengths and weaknesses. Weirich (1999) proposed the use of the TOWS (Threats, Opportunities, Weaknesses, Strengths) Matrix to analyze the Competitive Advantages and Disadvantages of Germany. The TOWS analysis for BMW allows four strategies to emerge. When we use Weirich’s opinion that The Strengths-Opportunities Strategy would play to the Culture of quality, we can justify why BMW used its skilled intellectual capital, its superior technological innovation, engineering machinery, chemicals and managerial practices. BMW must then analyze whether there exists an Opportunity in South Africa for these strengths. The Strengths -Threats Strategy would assume that they need to consider FDI as a means to capture more of an Emerging Expanding Market share in South Africa. BMW needs to look at the health of the automotive retail sector as well as the industrial manufacturing sectors. The Automotive Sector in South Africa is very healthy, as seen in the Local Manufacturing plants for Volkswagen and Toyota already in South Africa. The Weaknesses-Opportunities Strategy would use cheaper labour costs to overcome rising domestic competition from Labour Unions in mature contracting Economies. Kamoche (2002) reports the success of multinationals in the past to leverage low labour in South Africa. Machaka and Roberts (2003) also confirm that spiralling supply input costs like steel and other natural resources are also cheaper in South Africa. Weakness-Threats Strategy would only apply to countries that are a threat from their strong economic market share. Experiencing difficulties in exporting arising from an expensive product and strong currencies in their home country would scare off BMW. They would look for a stable political environment, a growing economy and a stable currency. Conclusion From this analysis the best fitting strategy that would fit BMW to adopt regarding Developing Economies, is the Weakness-Opportunities. BMW is a large multi-national company looking to find new markets in which to sell not only their product, but sell their expertise. BMW should us the abundance of natural cheap resources like steel, available in South Africa. This view is supported by Matjekana (2002). Matjekana (2002) also suggests that it is unusual that South Africa did not attract more FDI in their labour market. Using this opportunity as a value chain activity will increase profits. Matjekana(2002) is of the opinion though, that the reason for this paradox (that can be seen as a reversed Leontif paradox? is related to the South African Governments inability to get crime under control. BMW should use the Transnational strategy for moving their manufacturing plant to South Africa. BMW can exploit their experience curve effects in South Africa, importing technical resources; they can exploit location cost economies like cheap steel and labour. BMW can customize local product offerings better, since the costs incur red to do this is less in South Africa. In the South African Context it may make more sense to leverage their valuable skills this way as a commodity than pursuing a Global Strategy. A Global strategy has a lack of local responsiveness, and the market for Luxury Vehicles in African economies is small compared to developed nations. This lack of providing product customization is not a huge consideration therefore in South Africa. BMW should use South Africa as a doorway into the Market for both the rest of Africa, and a cost cutting distribution Centre to Australasia. They should use the wholly owned subsidiary model in which they can transfer their transient technology advantage, while it is structured to reduce risk of loss of technology. Question 4: Analyze the Global Competitive environment in which BMW operates and rank their position in the industry. The five competitive forces model was developed in 1980 by Michael E. Porter. The five competitive forces Porter (1980) proposed in his model have an effect on the car manufacturer BMW. Based on this analysis, the force with the most impact on the company will be identified. Based We will examine how BMW uses information systems to offset the most competitive of these forces. Porter (1980) suggests that competition in an industry is rooted in its underlying economic structure. The stage of competition depends upon five basic competitive forces, which determine the degree of competition and the profit potential in an industry. The five forces are (a) intensity of competitors, (b) power of suppliers, (c) power of customers, (d) threat of new entrants and (e) threat of substitute products (Porter, 1980). (a) Intensity of competitors BMW, which stands for Bayerische Motoren Werke, has made a well-known name as a luxury car manufacturer (Bernhardt Kinnear, 1994). The headquarters of the BMW group is in Munich, Germany, but the company has global reach. The company built high brand equity over the years through continuous branding efforts and high quality products. Kiley (2004) states† BMW is arguably the most admired carmaker in the world and BMW products inspire near- fanatical loyalty†. Within the luxury car manufacturing direct industry competition is fierce. U. S. manufacturers produce cars like Cadillac, Lincoln, Buick and Chrysler that look comfortable and visually stylish. European manufacturers like BMW, Mercedes Benz, Audi and Jaguar focus on customers that want the communication with the road via steering nd suspension systems (Bernhardt Kinnear, 1994) by producing functionally superior cars. The luxury car segment of the automobile market is at the maturity stage of the life cycle, locally and globally, due to an increased number of competitors from domestic and foreign markets. The automobile market is characterized by a low potential for market growth, but high sales and profit potential (Murtagh, 2004). T here are traditionally high entry barriers in this market and products are usually differentiated. Competitive forces are high in each segment of the overall market. BMW belong to the strategic group of luxury functional cars. This segment is categorized by low product diversification but a relatively high geographical scope (Murtagh, 2003). It is also a differentiated oligopoly. An oligopoly consists of a few companies with an unspecified number of buyers. The action of each company in this oligopoly affects the other manufacturers in the market and thus invokes reaction of manufacturers to one another. The objective of companies in an oligopoly is to maximize the present value of profit (Bernhardt Kinnear, 1994). BMW differs in the features, styles, quality, innovation, technology, design, appearance and services they aim to provide. BMW can also gain a competitive advantage to its U. S. competitors through exchange rates when the dollar is strong (Bernhardt Kinnear, 1994). (b)Power of Suppliers The roles and responsibilities of suppliers in the automobile industry have changed because the industry structure has merged. High switching costs and dependency give automotive suppliers high amounts of economic monopoly. High quality and high service levels towards BMW customers, from the consistent high quality, co-operating, high competency, just-in-time and reliability of suppliers. (c) Power of customers Customers, who buy, have major influence on the decisions of companies in an oligopolistic market structure. Porter (1980) explains that buyers force down prices, bargaining for higher quality or more services, and playing competitors against each other at the expense of industry to make profit. BMW’s positive brand image distinguished itself through its point-of-difference. The outcome is that BMW customers are loyal towards the brand. As a result, many competitors of BMW have to face falling sales and market share, while demand for BMW products continues to grow (Kiley, 2004). (d) Threat of New Entrants New entrants are essential for an industry to stay competitive (Porter, 1980). Their absence removes the drive to gain market share and profit. The Global Automotive Industry is an Oligopoly, and any new entrants make commanding profit and controlling price more challenging. BMW takes advantage of economies of scale, one of the major aspects of barriers to entry (Porter, 1980) because its unit costs decrease significantly with quantity increases. Capital requirements are probably the most significant barrier to entry because the production of cars requires immense financial resources. Research and Development, further facilities abroad for global operating scale, brand switching costs, Government Regulations in technology and environmental pollution influence entry barriers as well. (e) Threat of Substitutes Low End Cars, Motorcycles, bicycles and usage public transportation are limited, which results in low pressure on manufacturers (Porter, 1980). Substitutes limit the potential returns of an industry by placing a ceiling on the prices firms in the industry can profitably charge. The Power of Customers impacts mostly on BMW, because they increase competitors and product variety. Customers are the most important part for the success of BMW. As Gumbel (2007) reports the mass customization system BMW developed for catering for the specific tastes of individual customers, fills this need. A comprehensive passive safety system information system innovation by BMW called the Intelligent Safety and Information System (ISIS) was developed. BMW also use a dealer communication system that enhances the manufacturer-dealer relationship and effectiveness Conclusion: The BBC from their website and Data in Appendix B we can see that various sources rank BMW in second place in the Luxury Automotive Manufacturing industry, as a company. This is not reflected from the number if units sold, but rather in the Consumer Faults per 100 cars index, as well as the global index for most efficient organizational indexes. Daimler-Chrysler does not allow the empowerment of customers to express their individuality to the extent of making their vehicles more customizable, but they rank as a better managed enterprise. Bibliography: Admam, R. 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(2007) Rethink competition in the world auto market: cultural determinants, strategic implications and game rules. Strategy and Leadership 35(4), pp. 31 – 37. Appendix A: Hourly labour costs in 14 EU Member States, 2004 (in â‚ ¬) The table ranks 14 EU Member States according to hourly labour costs in the manufacturing and services sectors separately and for the combined total, 2004 (in â‚ ¬). Total (â‚ ¬) Manufacturing (â‚ ¬) Services (â‚ ¬) Denmark30. 70Belgium33. 10Denmark31. 30 Sweden30. 40Germany29. 90Luxembourg31. 30 Belgium30. 00Denmark29. 90Sweden30. 90 Luxembourg28. 30Sweden29. 60France30. 90 France28. 20Netherlands28. 90Belgium30. 60 Netherlands22. 40Finland28. 80Finland27. 20 Finland26. 80France27. 60Netherlands26. 50 Germany26. 20Austria26. 60UK24. 50 Austria25. 30Luxembourg25. 80Germany24. 10 UK24. 70UK24. 70Austria23. 80 Italy21. 40Italy20. 60Spain14. 30 Spain14. 80Spain16. 30Greece13. 70 Greece13. 40Greece12. 70Portugal10. 80 Portugal9. 60Portugal8. 30ItalyNo data EU1524. 00EU1525. 00EU1524. 20 Note: Data on Sweden and Greece refer to 2003; no data available for Ireland. Source: IMK Report, 2006 Appendix B

s Devotion

Antigone’s Devotion In the Greek play, Antigone, written by Sophocles a young princess of the same name as the play is faced with the death of her brother and the King’s decree not to bury him. Antigone shows her many traits as a character by going against her King and Uncle Creon and standing up for what she believes to be right. By doing so, Antigone shows her strength’s, her stubbornness, and her devotion to her brother. She holds this attitude until the closing stages of the play in which she reveals her more dejected side after realizing her fate. Antigone exhibits her strong will and bravery through her encounters with Creon and the possibility of death. From the outset of the play, Antigone shows her lack of fear of the King when she tells her sister Ismene that she is â€Å"†¦not afraid of the danger; if it means death, / It will not be the worst deaths-death without honor†(1231; Prologue). This establishes Antigone’s fearless mind-set regarding a meaningful death. Her encounters with Creon also shows the bravery in Antigone. She publicly questions his authority by declaring â€Å"Your edict, King, was strong, / But all your strength is weakness itself against / The immortal unrecorded laws of God.† By doing this Antigone infuriates the King and only makes certain her fate of death. Antigone’s strong will can also be perceived as stubbornness, and this in part leads to her demise. Her total lack of recognition of Creon’s authority and opinion is her major shortcoming as a character. She follows her belief’s ignoring consequences other’s opinions. This is shown in her arguments with Creon and Ismene. Instead of listening to others’ solutions to her issue, Antigone would rather do things her way without taking into account repercussions. Antigone demonstrates her obduracy when Ismene tells her to keep the fact that Antigone buried Polynices a secret and Antigone replies that she doesn’t care if everyone fi... 's Devotion Free Essays on Antigone\'s Devotion Antigone’s Devotion In the Greek play, Antigone, written by Sophocles a young princess of the same name as the play is faced with the death of her brother and the King’s decree not to bury him. Antigone shows her many traits as a character by going against her King and Uncle Creon and standing up for what she believes to be right. By doing so, Antigone shows her strength’s, her stubbornness, and her devotion to her brother. She holds this attitude until the closing stages of the play in which she reveals her more dejected side after realizing her fate. Antigone exhibits her strong will and bravery through her encounters with Creon and the possibility of death. From the outset of the play, Antigone shows her lack of fear of the King when she tells her sister Ismene that she is â€Å"†¦not afraid of the danger; if it means death, / It will not be the worst deaths-death without honor†(1231; Prologue). This establishes Antigone’s fearless mind-set regarding a meaningful death. Her encounters with Creon also shows the bravery in Antigone. She publicly questions his authority by declaring â€Å"Your edict, King, was strong, / But all your strength is weakness itself against / The immortal unrecorded laws of God.† By doing this Antigone infuriates the King and only makes certain her fate of death. Antigone’s strong will can also be perceived as stubbornness, and this in part leads to her demise. Her total lack of recognition of Creon’s authority and opinion is her major shortcoming as a character. She follows her belief’s ignoring consequences other’s opinions. This is shown in her arguments with Creon and Ismene. Instead of listening to others’ solutions to her issue, Antigone would rather do things her way without taking into account repercussions. Antigone demonstrates her obduracy when Ismene tells her to keep the fact that Antigone buried Polynices a secret and Antigone replies that she doesn’t care if everyone fi...

Culture Essay Example | Topics and Well Written Essays - 750 words - 8

Culture - Essay Example ricans maintain extended families that are not just limited to the blood relatives, but also extend beyond them to include distant relatives and friends whether or not they are blood related. â€Å"Family is the most important value that unifies the Latino community† (old.diocesephoenix.org, n.d., p. 6). The Hispanic American families include sponsors and godparents that love the children like their own even when they are actually not. The Hispanic American families believe in male supremacy. Men earn bread for the family while women are expected to stay at home and look after the children and the husband. Women are expected to submit themselves to their men. Men prefer not to let the women work, though the trend is changing and many Hispanic American women have entered the workforce, which has challenged the machismo of men and is the fundamental cause of distress in many families. The Hispanic American families give a lot of importance to the individualistic rights of each family member. Every individual is deemed worthy and important. Elders in the Hispanic American families are respected by the younger ones. The young seek advice from the elders. Every family member is given the right to have individualized close personal relationships. Communication in the Hispanic American families is governed by the concept of respecto. During communication, men and elders are prioritized over women and children. There are well-defined rules for members of both genders which they follow during communication. Hispanic Americans do not accept anger and aggression while communicating with one another. They deem it disrespectful to disagree over matters. It becomes problematic for them to agree over certain issues that they disagree with, but still they do not express negative emotions. Before this assignment, there were certain stereotypes about the Hispanic American culture in my mind that have changed now. For example, I did not know that the Hispanic Americans believe in

Compare the cultural revolution called for in the Futurist Manifesto Essay

Compare the cultural revolution called for in the Futurist Manifesto with the political revolution of the Plan of Potosi - Essay Example The Plan of San Luis Potosi, on the other hand, is a statement made by Francisco Madero, a leader of the political opposition in Mexico when the country was under the grip of a dictator, Porfirio Diaz. In the statement, Madero explicitly expressed the necessity of a revolution that would oust the dictator and establish a truly democratic government. Although both authors apparently wrote their respective pieces to promote revolutions, they do have significant differences in terms social analysis, objectives, methods, and perspectives. The fact that one is essentially cultural, while the other is political, is already a major factor in the difference between the two. Before Marinetti explained the concepts he is promoting in the Manifesto, he made an effort to first express his sentiments regarding the realities in Italian society then. It is apparent that he had nothing but harsh criticisms for the people’s continuing reverence of items of antiquity. He believes that people sh ould no longer adulate anything that is a remnant of a bygone era because this only tends to obstruct the rapid pace of development. He writes: â€Å"what is the use of looking behind at the moment when we must open the mysterious shutters of the impossible?† (Marinetti) However, Marinetti clearly goes to the extreme, when he considers that humane concepts are also outmoded. Clearly, this cultural revolution that he proposes is radical in a sense that it essentially seeks the eradication of what has been considered characteristically human: compassion. In place of love and compassion, which Marinetti believes are traits that can only be attributed to the weaknesses of humans, are hatred and violence. In explaining his agenda, Marinetti points out that all things that symbolize so-called glories of the past, including cemeteries and museums, should be destroyed so that futurism can be advanced. He asserts that â€Å"daily visits to museums, libraries and academies (those ceme teries of wasted effort, calvaries of crucified dreams, registers of false starts) is for artists what prolonged supervision by the parents is for intelligent young men, drunk with their own talent and ambition.† (Marinetti) In order to achieve what he envisions, Marinetti endorses the use of violence or war. For him, total destruction of the old through the use of violent force is the prerequisite to the realization of futurism. Madero, on the other hand, puts forward the idea of launching a political revolution against the Diaz dictatorship in his country, Mexico. Madero expounds the bases of the revolution in the article Plan of San Luis Potosi. The Mexican people have suffered much under the undemocratic rule of the current regime. Their basic civil and political rights have been violated many times, the most glaring example of which is the anomalous election results that led to the failed attempt of Madero to take the presidency. Madero denounces the Diaz promise of achie ving peace without democracy. He writes that it is â€Å"a peace full of shame for the Mexican nation, because its basis is not law, but force; because its object is not the aggrandizement and prosperity of the country, but to enrich a small group who, abusing their influence, have converted the public charges into fountains of exclusively personal benefit, unscrupulously

Mass media criticism - marxist analysis from ad Essay

Mass media criticism - marxist analysis from ad - Essay Example rly about the happiness and joy which surrounds the family and demonstrates the fact that being in McDonalds showers nothing but contentment and jubilation. Also shown in the ad is the fact that there is an interaction between the family and the guy sitting in the other booth. This interaction is rather a friendly one. as depicted by the huge smiles on the black guy and the father with his child. The Marxist theory emphasizes over the importance of social class, keeping in effect the ownership by the media and the response of the audience to the media text that is being brought forward. Talking about how the audience will react to the ad, there are certain point of views that can be emphasized. The major response of the audience will be positive. The ad depicts harmony and peace as well as joy and delight. Also, the audience will give an optimistic response to the ad because the ad emphasizes on a family-oriented nature and how it brings nothing but happiness all around. The audience might also react in different ways to the involvement of African- Americans in the ad and not white people. Some people might act in a negative manner however, others might have a positive response to having African Americans. 1970s was the time during which the African-Americans rose to greater heights than before. More visible than ever, African-Americans became a formidable presence in entertainment, politics, and science. This ad thus depicts the time of joy for the African-Americans. The text written at the bottom shows that McDonalds is a casual and comfortable place and invites the targeted audience by mentioning about the quick service and about the excellent quality food. talking further about the ad, it shows that how Macdonalds packages history and concrete memories to sell products that enlists its audience in the commoditization of memory and celebration of basic ideological values of U.S. society (i.e. patriotism, the continuity of history, family, consumption, etc.). The

Environmental Scan Of The Airline Industry Tourism Essay

Environmental Scan Of The Airline Industry Tourism Essay We have defined our relevant market for Flydubai as a low cost carrier within the product form level. Being positioned as a low cost national airline carrier, its facing a high competition from other national airlines which force the relevant market to be within the product form. (For more information on the relevant market please refer to appendix 2). This paper will focus on presenting an environmental scan of the airline industry within the Middle East region during the time frame of 3 years (2009-2012). In order to do so, we will identify the significant trends and their consequent implications on Flydubai relevant market. This report will include an in depth review of the macro, micro analysis and its implications of Flydubai relevant market in the next three years. Body: In identifying the major key trends in the macro environment of Flydubai, we have addressed several issues that include the political, social and economical trends. Flydubai was established by His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Prime Minister and Vice-President, and Ruler of Dubai orders in march 2008 and started its operation in its first flight to Lebanon on June 1st 2009.Being fully owned by Dubai government and enjoy the full facilities offered in terminal 2 at Dubai International Airport, the company is having a competitive advantage compared to its rivals in the market as it enjoy the full government support and airport services. Furthermore, the current government trend in the labor force is towards emiratization and protecting labors rights. Being a part of the Fly Emirates Group, the organization will face no problem in emiratization as it will follow Fly Emirates emiratization strategy. The major challenge that Flydubai will face is being able to offer high paid jobs and reduce its operational costs as it is considered a low cost airline company. Living in the current financial crises era, Flydubai was established in one of the most difficult time the country economy had faced in the last 25 years. Falling oil prices, cooling real estate and construction markets, together with a slowdown in the tourism sector, especially in Dubai, means the UAE is expected to post low or possibly negative GDP growth in 2009, according to analysts (Arabian Business, 2009). This information may be considered negative to many airline companies but it may be positive to a low cost airline like Flydubai as people are now focusing more in reducing their expenses as the incomes are reduced. This means their tendency of consumers focusing more on prices is increasing. Furthermore, consumer behavior is changing towards low cost airlines especially in the Middle East region as consumers are persuaded by low prices and a better service offered by low cost airlines. According to a study done by Arabian Business website, it was found that 83 percent of the respondents would switch their preferred airline carrier, for a cheaper price, while 17.6 percent believed they would consider alternatives and trade off between the discount and lost air miles. It can thus be inferred that pricing plays a significant role in consumer behaviour and the decision making process especially in the current economic downturn era (Glass, 2008). According to Dubai department of Tourism and commerce marketing 3.85 million tourists had visited the emirate in the first half of 2009, a five percent increase on the same period of 2008. This figure strongly shows the current tourism industry market and how attractive it became even though of the current economical downturn. Other figures expect that the number of tourists will fall compared to 2008 figures but most figures have stated that there will be a positive growth in 2010. This figure shows that Flydubai will see a future growth rates in the coming 3 years as terrorism sector restore its high figures after overcoming the current downturn. As observed by Andrew Cowen, CEO of SAMA Airlines, the market is shifting from the traditional major airlines business travel towards low cost carriers for trips within the GCC. Business travelers are changing their perception of low cost carriers, supported by the current economic downturn and the increase number of foreign businesses within GCC countries entering the UAE. This shows a trend of an increasing demand for low cost carriers in the next three years (High time for low cost carriers, 2008). (For in depth information on the analysis of the macro environment of the airline industry please refer to Appendix 3) In identifying the major key trends in the micro environment the following aspects that includes, Customers, Employees, media, shareholders, competitors and suppliers. Customers who are price conscious are concerned with low cost airlines. Flydubai has focused on pricing strategy and flexibility because these two factors play a big role in determining the customers decision process on which airlines they choose to travel with. Moreover, the number of tourist from around the world including the region will grow more than 40% in the next 3 years in Dubai (www.realtyna.com). This shows that there will be increased number of customers who will use Flydubai airlines within the next three years due its successful use of pricing strategy and flexibility. The Employees of Flydubai have good experiences and they were carefully selected from twelve different nationalities. According to Kenneth Gile, chief operating officer of Flydubai said: We are extremely pleased with the talent of the pilots we have on board. On average, they each have more than 4,000 hours serving as captain in similar aircraft and a total experience of more than 8,000 flying hours this is impressive by any standard (Sambidge, 2009). Flydubai is fully owned by the government of Dubai and its considered as a part of its mother company the Emirates Group. The main strategy that Flydubai is willing to use for their marketing strategy is through word of mouth (buzz). This is because Flydubai is a low cost airline; they tend to set low budgets for their advertisements to keep their prices low. The direct competitors of Flydubai are Air Arabia and Al Jazeerah airlines because these two airlines are also low cost airlines in the same country as Flydubai. However, the major competitor of Flydubai is Air Arabia because, first of all, they are the first to claim about low cost airlines in the Middle East region. Moreover, they hold the highest market share in the relevant market as identified before. Our market share comparing to those two carries are low because Flydubai just recently launched to the market. But, within the next three years we expect rapid growth in the market share because Dubai is a destination for tourists. The major indirect competitor is Fly Emirates which stands as the leader in airline industry in the relevant market and it will keep its performance in the next three years. The second indirect competitor is Etihad Airlines which is growing fast because of the unlimited support from Abu Dhabi government. In addition, those airline carriers make low price offers for the same destination that we have flight lines to. The supplier of Flydubai is Boeing. Flydubai announced an order of 50 next generation 737 aircraft from Boeing. Sheikh Ahmed bin Saeed al Maktoum said: The Boeing Next-Generation 737 is ideally suited to our mission to bring some two billion regional inhabitants affordable, efficient and flexible travel options to and from Dubai.(For more information on the micro environment analysis, please refer to Appendix 4). Implications: Primary demand: Low cost airlines are focusing on customers who are price conscious. The number of customers using the LCC airlines is increasing and it will continue growing in the next three years (www.gulf-daily-news.com). This is because, first of all, the percentage of tourists will increase by 40% within the next three years which shows that the market share of LCC will increase as well. Secondly, because of the economic condition, many people tend to save money and spend it on low cost airlines to travel more to the desired destinations. Users of Low cost airlines contain all different ages and nationalities. Moreover, cost is one of the main factors that affect customers ability to buy. The costs of these carriers are low and will continue to remain low in the next three years. This will increase customers ability and willingness to buy. Selective demand We can define the consumer decision making process as an extensive problem solving level, where they are introduced to a complete new brand with low brand knowledge. So, Flydubai should infusive more on their brand identity through the media and other communication types in order to enrich consumers knowledge. Once Flydubai had increased the level of consumer knowledge, we expect huge increase in market share in the next three years because the decision making process is going to shift from extensive problem solving to routine which is low information search about the company. Therefore, we expect major change within the next three year upon the factors we mentioned above. Segmentation: As for segmentation we expect to see a rise in the population of the UAE in the following 3 years. According to the electronic portal of Gulf News the population of UAE is approaching six million as of now and it is expected to escalate even further by the end of this year. An increase in construction in the coming years requires more labor to be imported from foreign countries, thus increasing the number of potential customers (low income and middle-class lifestyles) who might want to use our services. Moreover, economic boom can also be a factor for businessmen to travel to and from Dubai more frequently. In addition, the number of students travelling to the UAE for education is expected to increase in the near future; this implies that they will most probably select Flydubai as their primary mode of transport to travel to and from the UAE, since the economic condition shows very little signs of improvement in the near future. More tourists are expected to arrive in the UAE within the near future out of which a section of them are extremely price sensitive travelers. Another scenario would be that the current economic downturn continues to effect economies world-wide within the coming three years increasing the number of price-sensitive customers in the eight markets we operate in. To keep up with the projected demand, Flydubai is planning to increase its fleet size from 5 (currently) to 54 aircrafts in the coming years. An increase in fleet size would allow Flydubai not only to accommodate a large number of clients but also expand its reach in terms of destinations. Conversely, the announcement of the new GCC rail network which is the new transportation class in our relevant market is expected to have a slight negative effect on Flydubais operations in terms of loosing clients that fall in our target segmentation. The GCC rail network and Flydubai have one common destination which is Qatar. Once the GCC rail network begins its operations there is a high possibility of losing out on our current and potential clients. (For more information on segmentation please refer to appendix 5). Competitor analysis Our major competitive in our relative market is Air Arabia and then Al Jazeera Airlines. Air Arabia is holding major market share because they are the first to claim about launching first low cost airlines in Middle East region. However, Flydubai can compete with those two direct competitors when we focus on our competitive advantage which is price leadership. Also, location is another important factor due the number of travelers that are using Dubai Airport comparing to Sharjah Airport. In addition, being part of the Emirates Group will add more value to Flydubai brand equity which will make it easier to make customers shift toward our company within the next three years. (For more information on competitor analysis, please refer to Appendix 6) Conclusion: In conclusion after analyzing the environmental micro and macro trend for Flydubai, we observed that there are two major changes in our relevant market. First, the increase of the tourism level in Dubai as we expect the current economic downturn era to change its direction towards positive figures in the next three years. Also, the companies holders and businessmen attitude towards low cost airlines is changing by using it as these airlines are providing business men services aboard such a business class and wireless internet connection. The number of competitors within the low cost airline industry is going to increase in the coming years as new airlines such as Bahrain Airlines starts its operation this year. Secondly, full service airlines are expanding their market towards low cost airline by introducing low price tickets that attract price sensitive consumers. We expect that within the next ten years a new class level will enter the market in the GCC region which is trains trans portation. Also, a new form level will emerge in the relevant market which is a combination between full services and low cost carriers. Finally, within the next three years we expect those changes in the relevant market to be reshaped affecting the primary and selective demand. Bibliography (2009, October 18). Flydubai airline. Retrieved from http://www.dubaifaqs.com/Flydubai.php McKechnie, D, Grant, J, Katsioloudes, M. (2008). Positions and positioning: strategy simply stated. Emerald Group Publishing Limited, 9(5), Retrieved from http://www.emeraldinsight.com/Insight/ViewContentServlet?Filename=Published/EmeraldFullTextArticle/Articles/3300090502.html doi: 1751-5637 (2009). Environmental scanning. Wikipedia. Retrieved (2009, October 17) from http://en.wikipedia.org/wiki/Environmental_scanning (2009). Flydubai. Wikipedia. Retrieved (2009, October 17) from http://en.wikipedia.org/wiki/Flydubai (n.d.). flydubai, who we are. Retrieved from http://www.Flydubai.com/whoweare/fleet.aspx (2009, June 8). Two more tough years for the airlines. Retrieved from http://www.eturbonews.com/9675/two-more-tough-years-airlines Nagraj, A. (2009, September 16). Gloomy skies for the airline industry. Retrieved from http://www.kippreport.com/2009/09/gloomy-skies-for-the-airline-industry/ Centre for Asia Pacific Aviation, Initials. (2009, October 15). Middle East LCC wrap: Air Arabia, Jazeera, Flydubai, nasair, sama and Bahrain Air. Retrieved from http://www.centreforaviation.com/news/2009/10/15/middle-east-lcc-wrap-air-arabia-jazeera-Flydubai-nasair-sama-and-bahrain-air/page1 Riaz, D, Kapadia, S. (2007). Air Arabia, Priced so that you can fly [5-14]. (Adobe Digital Edition Version), Retrieved from http://ae.zawya.com/researchreports/efg/20070701_efg_110604.pdf Schewe, , Charles, D, Hiam, A. (n.d.). market segmentation. Retrieved from http://www.quickmba.com/marketing/market-segmentation/ (2009, 10 07). UAE population reaches six million. Retrieved from http://www.google.com/hostednews/afp/article/ALeqM5j24H1v8s1BWuNXEwptqRIiB_-OOA (2009, 10 07). Expat numbers rise rapidly as UAE population touches 6m. Retrieved from http://uaeinteract.com/docs/Expat_numbers_rise_rapidly_as_UAE_population_touches_6m/37883.htm (2009, April 7). FlyDubai opens for business with flights to Beirut and Amman. Retrieved from http://www.ameinfo.com/191649.html (2009, October 8). Number of tourists in Dubai set to grow by 40 per cent . Retrieved from http://74.125.153.132/search?q=cache:EPQhPUeolAEJ:www.realtyna.com/dubai_real_estate/dubai-rss-news/number-of-tourists-in-dubai-set-to-grow-by-40-per-cent.html+http://www.realtyna.com/dubai_real_estate/dubai-rss-news/number-of-tourists-in-dubai-set-to-grow-by-40-per-cent.htmlcd=1hl=arct=clnkgl=ae Sambidge, Initials. (2009, March 18). flydubai appoints pilots, cabin crew. Retrieved from http://www.arabianbusiness.com/549994-Flydubai-appoints-pilots-cabin-crew Sambidge, A. (2009, August 11). Dubai tourists up 5% in H1 official. Retrieved from http://www.arabianbusiness.com/564508-dubai-tourists-up-5-in-h1official (2009, 10 07). UAE population. Retrieved from http://archive.gulfnews.com/articles/09/10/07/10355378.html Redpath, H. (2009, June 16). Dubais First Low Cost Airline Takes Off. Retrieved from http://multivu.prnewswire.com/mnr/Flydubai/38830/ Redpath, H. (2009, June 16). Dubais First Low Cost Airline Takes Off. Retrieved from http://www.zawya.com/story.cfm/sidZAWYA20090616081711 Appendix 1 Back Ground information on Flydubai: Flydubai is the UAE second low cost airline that was established in March ,3rd 2008 on the orders of His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Prime Minister and Vice-President, and Ruler of Dubai. The company first flight was in June 1,2009 to Beirut in Lebanon followed by flights to Amman, Jordan, on June 2, Damascus, Syria, on June 8 and Alexandria, Egypt, on June 9, giving the new airline a total of four destinations in just nine days. (Redpath, 2009). The company had ordered 50 Boeing 737 and is going to receive 10 airplanes each year for the next five years. (Flydubai,2009) Currently the company runs its operations in Dubai International Airport terminal 2 that was redesigned for the new airline. Sheikh Ahmed Bin Saeed Al Maktoum, Chairman of Flydubai said: This region is very dependent on air transport. It is a great credit to the vision and leadership of Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, that this airline has now taken off, thereby ensuring residents and visitors alike will be able to travel to more places more often. (Redpath, 2009). The Flydubai model is simple, with customers only paying for the services they want. The ticket price includes all taxes and one piece of hand baggage, weighing up to 10kg, per passenger. Passengers have the option to purchase checked-in baggage in advance at just 40AED for the first piece and 100AED for the second, weighing up to 32kgs, subject to availability. Checked baggage is strictly subject to availability and passengers are advised to book early to secure the space, as only pre-purchased baggage can be guaranteed. (Redpath, 2009) Flydubai aims to make travel a little less complex, a little less stressful and a little less expensive, explained Flydubai CEO Ghaith Al Ghaith. Our passengers have the option to customize their travel experience depending on what services they want and how much they want to pay. (Redpath, 2009) We plan to stimulate the markets in which we operate and encourage people to travel to more places more often. Flydubai aim is not to drive traffic away from the other carriers but to help grow these markets. When you consider that low cost travel in this region could be as little as 2% of all air travel, as opposed to more than 20% in Europe and America, it is clear that there is a lot of untapped potential in these markets. (Redpath, 2009) In addition, Flydubai will fly to airports that are currently underserved by the traditional carriers. In a region which is so dependent on air transport, we are looking forward to providing the reality of accessible, low cost, uncomplicated travel (Redpath, 2009). Appendix 2: Product Market Structure: The above market structure was used to identify Flydubai relevant market within the airline industry in the Middle East region. We started the structure with the most basic need which is the need to travel in the region. This provided us with three alternatives that include airplanes, buses and cars. The product form is divided between full service carriers and low cost carriers as they differentiate in prices and services being offered to customers. From this structure we can identify Flydubai relevant market within the product form level. This is because the degree of competition and substitutability within the brand suppliers are high, as they all offer low prices with similar routes within the region. This push the relevant market upwards towards the product form level. Furthermore, Flydubai indirect competitors include Fly Emirates, Etihad airlines and Saudi airlines. These full service airlines are competing with Flydubai indirectly by providing low prices with full services. O n the other hand our direct competitors include Air Arabia and Al Jazerra airlines that are both low cost airlines that perform within the region. Further explanation on competition will be provided in the Micro analysis in the competitors section. Appendix 3 Macro Environment: In studying the external environment of Flydubai in the next three years we will focus on the Macro and Micro environment. This study will help us in finding out the effect of these external factors on the company in the next few years. The Macro environment factors will include Political, economical, social and technological aspects under which Flydubai will be affected by. 1) Political Analysis: A) Government Regulations: Flydubai was established with orders of His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Prime Minister and Vice-President, and Ruler of Dubai. Being owned by the Dubai government the company faces no difficulties in laws and regulations as the airline industry in the Emirates is booming through the process of liberalization the airline industry that the United Arab Emirates is adapting. B) Political Analysis: In studying the overall political environment of the United Arab Emirates, we find it one of the most stable countries within the region. Such political approach of peace seeking had made the country a trading hub in the region. This will certainly have its positive effect on flydubai operations as to perform in stable political environment. C) Employment Laws: Protecting labors rights and Emiratization is considered the main aspect that the UAE government is taking into consideration now a days. Companies are now forced to have a certain percentage that of emirates locals that will increase in the following years as there is more emphasis on employing locals in the private sector. Being a part of Emirates Airlines Group, Flydubai will certainly adapt its mother company in hiring and training locals in suitable jobs. The challenge that Flydubai will going to face is to decrease costs in one hand and provide well paid jobs in the same time . 2) Economical Analysis: A) Inflation Rate: The inflation rate in the UAE is predicted to fall from last years 11.1 percent level to seven percent in 2010, according to a new report. (Sambidge, 2009). This is considered a positive aspect for Flydubai as it will have its positive effects in reducing the company costs in oil and ground operations. High inflation rates reaching to 11 percent last year was a threat to low cost airlines such as Air Arabia and Al Jazerra Airlines that faced a problem of high oil prices. This good news will make Flydubai compete even stronger on prices as inflation rates goes down. B) Economical Analysis: Falling oil prices, cooling real estate and construction markets, together with a slowdown in the tourism sector, especially in Dubai, means the UAE is expected to post low or possibly negative GDP growth in 2009, according to analysts. (Sambidge, 2009). Living in the current World Financial Economic Crises the UAE economy in general and Dubai in specific faced a hard time in 2009 but analysts forecast that there will be more positive figures in 2010. This information is considered a negative too many airline companies but may be positive to Flydubai as people are now more focus in reducing their expenses as the incomes are reduced. This means their tendency of consumers focusing more on prices which is a positive thing for a low cost airline. Additionally, analysts forecast that the economy will grow in 2010 again and this will certainly have its effect on the company growth. 3) Social Analysis: A) Demographics: More than 300,000 people will be added to the UAE population this year to record the highest growth of 6.3 per cent in five years and Dubai would likely emerge as the fastest growing emirate, official figures show. The rise rebuffs reports that the global financial turbulence has triggered a mass exodus of expatriates out of the country, mainly Dubai. From 4.75 million in mid 2008, the UAEs population is projected to increase to 5.066 million in mid 2009, showed the figures by the Ministry of Economy. This figure are going to increase in the next few years which will certainly have its positive effects on the airline industry in UAE considering that expatriates make an approximate percentage of 80.1 of the above figure in 2009 according to the ministry of economy. Furthermore, the figures show that the 25-29 year age group was the largest in the UAE in mid 2008, standing at 777,186. It was followed by the 30-34 age groups, which was estimated at 754,289 and 35-39 groups of 588,505. This clearly indicates that most of the population is young and is going to shape the tourism and aviation market in the next couple of years. B) Consumer Behavior: According to a study done by Arabian Business website, it was found that 83 percent of the respondents would switch their preferred airline carrier, for a cheaper price, while 17.6 percent believed they would consider alternatives and trade off between the discount and lost air miles. It can thus be inferred that pricing plays a significant role in consumer behaviour and the decision making process especially in the current economic downturn era. Furthermore, customer loyalty in the low cost carriers is low as its directly related to price. Flydubai should consider this into account and introduce customer loyalty programs in order to maintain a higher level of customer loyalty. (Glass, 2008). C) Leisure Interests: 3.85 million tourists had visited the emirate in the first half of 2009, a five percent increase on the same period of 2008 According to Dubai department of Tourism and commerce marketing . This figure strongly shows the current tourism industry market and how attractive it became even though of the current economical downturn. Other figures expect that the number of tourists will fall compared to 2008 figures but most figures have stated that there will be a positive growth in 2010. D) Career Attitude: Business travelers are changing their perception of low cost carriers. As observed by Andrew Cowen, CEO of Same, the market is shifting from the traditional major airlines business travel towards low cost carriers for trips within the GCC. This changing attitude, supported by the current economic downturn and the increase number of foreign businesses within GCC countries entering the UAE, shows a trend of an increasing demand for low cost carriers in the next three years. (High time for low cost carriers, 2008). E) Technological Development Analysis: Following its mother company Emirates Airlines, we expect that Flydubai become a market leader in providing advanced technological solutions to its passengers by using the large experience that emirates airline have. If such direction was adapted, it will certainly provide the needed strength that Flydubai need in competing with its direct and indirect competitors. Appendix 4 Micro Environment: Stakeholder Analysis: This means to analyze the micro environment which includes the following factors: the customers, employees, shareholders, media, and the competitors. A) Customers: Customers who are price conscious are concerned with low cost airlines. Flydubai has focused on pricing strategy and flexibility because these two factors play a big role in determining the customers decision process on which airlines they choose to travel with. Price strategy and flexibility of Flydubai include low pricing strategy and easy booking with increased choices. As Sheikh Ahmed bin Saeed Al-Maktoum, Chairman of Flydubai said: As a true low cost airline we are geared towards providing our passengers with the best price and increased choice. We will operate efficiently and continually evolve to deliver the best possible product to our customers. (Flydubai opens for, 2009). The cost of Flydubai from Dubai airport to Doha airport would cost 200DHS, whereas other major airlines such as; Emirates or Qatar airlines would cost approximately 1000 or more for a one way ticket (Flydubai home page, 2009). This shows that Flydubai is much cheaper and has managed to keep prices low due to the successful use of their pricing strategy. Moreover, the number of tourist from around the world including the region will grow more than 40% in the next 3 years in Dubai (Number of tourists, 2009) .This shows that there will be increased number of customers who will use Flydubai airlines within the next three years due its successful use of pricing strategy and flexibility. B) Employees: Flydubai airline has received more than 11,500 applications from flight and cabin crew. There are 18 first officers, 61 captains, and almost more than 8000 candidates for pilots were selected from twelve different nationalities (Sambidge, 2009). The staff has good experiences and was carefully selected. According to Kenneth Gile, chief operating officer of Flydubai said: We are extremely pleased with the talent of the pilots we have on board. On average, they each have more than 4,000 hours serving as captain in similar aircraft and a total experience of more than 8,000 flying hours this is impressive by any standard (Sambidge, 2009). Furthermore, employee and staff hospitality is very important. This is because the employees and staff were selected from twelve different nationalities and they need to feel comfortable with the new culture they are facing in order to work efficiently. D) Shareholders: Flydubai is fully owned by the government of Dubai and its considered as a part of its mother company the Emirates Group. The company has no other shareholders currently as there its 250 million dirhams capital is completely raised by the government. E) The media: Obviously, through observations, Flydubai has made many advertisements through publicity such as; Newspapers (e.g. gulf news) and internet websites. However, the main strategy they used or willing to use for their marketing strategy is through word of mouth (buzz). Since Flydubai is a low cost airline, they tend to set low budgets for their advertisements to keep their prices low. So the best way to conduct an advertisement method for low cost carriers is through word of mouth. (This information is based on analysis due to facts and observations). Appendix 5 Primary demand: After making the environment analysis for the next three years and studying the current market conditions, we identified Flydubai relevant market at the product form level. This is because there is a high competition within the brand supply level forcing it towards the product form level as they all offer low prices with similar destinations. After the financial crisis, we noticed a shift toward low cost airlines as incomes had decreased. This had its effects on the following primary demand elements that include: Buyer Identification: The number of customers using the LCC airlines is recently increasing (www.gulf-daily-news.com). Users of LCC

Pros and Cons of Home Schooling Essay -- Education Classroom Teaching

Pros and Cons of Home Schooling Every parent is faced with the decision of whether or not to home school their child. While some families may find home schooling as being very helpful and beneficial to their child’s education, others may find that it is crucial their child be sent to a normal school. Some parents are hesitant to send their children to public school because of crime and lack of discipline and also because they fear that the quality of education is declining. Parents may also feel that sending their child to school will aid in their social development. Home schooling has both advantages and disadvantages which aid parents in this difficult decision. Home schooling has been proven to result in higher test scores for students. This could possibly be a result of a more individualized learning environment where personal attention is always given. According to two Time reporters, â€Å"the average SAT score home schoolers in 2000 was 1100, compared with 1019 for the general population† (Cloud and Morse). The amount of time a child has been home schooled has a direct correlation with their performance on standardized tests. â€Å"Home-schooled pupils who took the Iowa Test of Basic Skills outscored public school students by 37 percentile points.† â€Å"On the Stanford Achievement Test, the advantage was 30 percentile points.† (Viadero) It is clear that home schooling does not hinder a child’s education. While home schooled children may achieve academically ...

Globalisation Is a Euphamism for Neo-Colonialism

Globalisation is a euphemism for neo-colonialism. Discuss. Globalisation is a complex and multifaceted issue (Bayliss 2008:252). However, this essay will on the imbalance between western powers and the developing world and consequential exploitation, which, rather than being condemned as neo-colonialism, is justified as globalisation. The end of colonial rule did not mark the end of the trend of economic control and exploitation of the developing world (Manzo 2009:267).The cultural, political and economic effects of globalisation upon the developing world resemble that of neo-colonial power – an inequality that is defended by the benevolence of neo-liberalism and egalitarianism of the free market. This essay will focus on the cultural and political international dominance of the west and economic partiality of globalised institutions, referring to IR theories of globalisation defending it as beneficial (Bayliss 2008:248, Pasha 2009:330) and condemning it as capitalist imperial ism.Colonialism describes a period of expansion and exploitation by European powers spanning the 15th to 20th Century, the ‘political control, physical occupation, and domination of people†¦ and their land’ (Crawford 2002:131). Between 1946 and 1976 European powers granted independence to all their colonies. However, Horvath writing in 1972 argues that neo-colonialism swiftly followed its predecessor (Horvath 1972:46).Neo-colonialism implies that whilst post-colonial states attained nominal sovereignty within the international system, they remain dependent upon western powers and are subsequently politically controlled, culturally conditioned and economically exploited (Nkrumah 1968:x-xii). States with the ‘†¦outward trappings of international sovereignty’ but in reality have their ‘economic system and thus its political policy†¦ directed from outside. ’ (Nkrumah 1968:xi)Globalization can be defined as the expansion of ‘wor ldwide interconnectedness’; where states integrate and supranational institutions are formed. Whilst stronger states control their involvement, weaker states are forced to integrate, being influenced rather than influencing (Bayliss 2008:255). Neo-liberalism argues integration is beneficial (Bayliss 2008:249, Sorenson 1997:10) globalization will ‘restructure the world economy without the need for interventionist policies’ creating equality within a competitive free market (Hirst 1999:134).World-system theory however, describes monopoly capitalism where rich ‘core’ states exploit ‘peripheral’ poorer states, essentially an international class system (Bayliss 2008:147, Wallerstein: 1989). Realist thought, would argue that powerful states merely use the globalised system for their own benefit (Waltz 1979). Globalization could therefore be seen as an ‘instrument for imperialism’ favoring strong capitalist states (Bayliss 2008:153 ) essentially a euphemism for neo-colonialism. Democracy is promoted through globalization based upon neoliberal ideals of humanities right to ‘libertarian happiness’ (Morgenthau 1960:100).The political weight of Western thought, and the professed moral legitimacy of its international promotion highlights a neo-colonial dominance (Nkrumah 1968:ix), The Western world believes international co-operation can only safely occur between liberal democratic states (Owen 1994:96). ‘Separate peace’ (Doyle 1986:1151), co-operation solely between liberal democracies, can be seen through EU accession criteria (Europa 2010:Copenhagen Criteria) and ENP policy (DeBardeleben 2008:21) and IMF and World Bank loan policy (Cogan 2009:211). Imposing Western political principles using economic incentive.Here, humanitarian aid is a gift of neo-colonialism; foreign capital used for the exploitation rather than the development of the third world (Nkrumah 1968:x) For Western powers f orce is often a necessary option against illiberal states (Hoffman 1995:31) Owen 1994:97). US involvement in Afghanistan and Iraq has been motivated by the desire to spread democracy and ensure security (Owen 1994:125-127). This power politics contradicts equality of neo-liberal co-operation in globalization suggesting political homogeneity imposed by an imperialist force.Realists argue that states espouse humanitarian motives as a pretext to cover the pursuit of national self-interest (Franck and Rodley 1973). Nato selectivity of response in Kosovo (1999) failing to act in Sudan (Bayliss 2008:527) and the illegitimate intervention of France in Rwanda (1994) expose a flawed international justice, where Western powers act without restraint. In 2005 the UN adopted the ‘responsibility to protect’, giving itself legitimate right act upon human rights breaches. This is one of many examples of nternational institutions imposing Western political and moral ethics justified by an international responsibility (Morgan 1972:33-34); a practice widely accepted in Western public opinion (Reisman 1985:279-80). Globalization is essentially creating an international super power that transcends state borders possessing hegemony on moral and political principles with a self-legitimised right to enforce them. Defenders of globalization suggest the international community is one of shared and defended values.However, these values are presented by the West, who misuse this influence to intervene without justification. Globalization has allowed for an increased flow of culture and traditions internationally. However, this flow has not been evenhanded, media dominance of Western powers dwarfing smaller states. The advanced nature of US media and sheer weight of capital has created ‘Media Imperialism’ (Sklair 2002:167) where the developed world is flooded by broadcasting promoting Western products, creating an externally dictated popular culture.The consequen ce is a developed world dominated by Western products e. g. Coco cola; the best selling drink in the world (Coca Cola 2010). Under the theory of neo-colonialism, neo-colonial states are obliged to purchase manufactured products from imperial powers to the deficit of local products (Nkrumah 1968:ix). The culture and products of powerful societies are not imposed upon weak societies by force or occupation (Crawford 2002:131, Sklair 2002:168) but underhandedly via an internationally dominant media ‘limited to Anglo-American interests’ (Lee 1980:82).Whilst globalization arguably encourages multiculturalism (Bayliss 2008:423), a disparate International system has created a dominant culture within the global community (Kymlicka 1991:182) that exploits its status to the demise of the developing world (Golding and Harris 1997). Colonialism saw a moral arrogance with missionaries striving to create ‘a replica of ones own country upon the natives’ (Emerson 1969:13-14 ) a ‘noble purpose of saving the wretched. ‘ (Horvath 1972:46) Colonial powers occupied weaker states, imposing culture, religion and values based upon a superiority of power, policing and governing without legitimacy (Crawford 002:131-133). Similarly neo-colonialism operates in ‘political, religious, ideological and cultural spheres’ where the powerful ‘transform â€Å"the other† into oneself’ (Toje 2008:83) based on moral conceit. Globalisation has revealed conformity to Western democracy and culture, whether it has been received or enforced is the issue of debate. Globalisation as ‘interconnectedness’ (Bayliss 2008:252) economically the ‘integration of national economies into global markets’ (Todaro 2000:713) is driven by economic growth.The creation of the international free market intended to have a beneficial effect on developing countries (Hirst 1999:134) ‘shifting power away from developed countries to the rest of the world’ (Martin 1997:12). However, free market competition creates losers, often the most vulnerable ‘feminized’ states (Peterson 2009:287). Whilst globalisation did not create inequality, the solution for development was flawed, merely worsening the imbalance (Peterson 2009:287) – arguably, colonialism creating inequality, neo-colonialism maintaining it (Horvath 1972:46).Realists believe states only benefit at other states expense (Art, Waltz: 1988:67-68) suggesting neo-liberal ideas of development would harm the developed nations. Whilst international economic institutions such as the WTO, IMF and World Bank are intended to maintain free trade and assist developing countries, they have often been accused actually maintaining inequality (Peterson 2009:291) for the benefit of elites (Gray 1998, Greider 1997). A free market is intended to be free, impartial and competitive (Bayliss 2008:249). However, the rules of world trade are created, and therefore weighted in favor of rich countries.For example, trade-related aspects of international policy rights require international patent protection favour firms based in the Western World who hold 90% of patents forcing expensive products on the developed world who cannot produced their own low cost versions, the worst example being that of patented medicine (Watkins 2002:78). The double standards of the free market are also apparent in trade tariffs (Anderson 2006:147-159). Northern governments promote free trade and use the IMF and World Bank to impose import liberalization on poor states (Romano 2004:1012).Yet they refuse to open their own markets, south-north export trade tariffs cost developing countries $10 billion annually, twice the amount they receive from humanitarian aid (Watkins 2002:79). International economic institutions are essentially governed by Western powers – the World bank presidential post dominated by American citizens since its creation, not based on votes but informal agreements between the US and European stakeholders (Cogan 2009:209) Since the outset the US has shown dominance (Gowa 1983) creating the ‘Bretton Woods system’ in 1944 and causing its breakdown, in 1971 (Bayliss 2008:245).The competition of the free market, handicapped against the third world by dishonest steward of international economic institutions has allowed for economic hegemony – post-colonial states remaining dependant upon their ‘former masters’ (Young 2001:45). Marxist theories fit alarmingly with criticisms of globalization, World System Theory and Dependency Theory showing resources flowing from â€Å"periphery† of poor, underdeveloped states to a â€Å"core† of wealthy states (Bayliss 2008:147). Poor states are ‘impoverished and rich ones enriched’ by the way poor states are forced into the globalised world system (Blomstrom 1984:8-45).Lenin’s work Imperialism, The Highest st age of Capitalism shows a ‘capitalist monopoly’, essentially neo-colonial ‘periphery’ at the bottom of a tiered international system, a system Marxist’s would argue is essentially globalisation (Bayliss 2008:157). However, unlike colonialism globalization has arguably empowered ideas above states, giving the defenders of ‘neo-colonial’ states a louder voice. Social Constructivism argues that globalisation is far deeper than interaction between states (Snyder 2004:60).Whilst colonialism remained acceptable for centuries, the exploitation and imbalance of the current world system does not go unnoticed, numerous NGOs pressuring government institutions and operating independently as aid organizations. Globalisation has created an imbalanced world system retaining North-South divides that emerged during Colonialism (Horvath 1972:46). Whilst neo-liberal free markets aimed to resolve the inequalities, Realism argues flaws and bias within the cu rrent international system were retained and created as to ensure the Western powers remained economically powerful over the developing world (Emerson 1969:15).Emerson claims it would be a ‘turning point in history’ for global systems not to bring forth a ‘new imperialism and new colonialism’ (Emerson 1969:16). The cultural and moral dominance of Western powers and active promotion of values, for the ‘benefit’ of the developing world however, is a far more malevolent sign that globalization is a euphemism for neo-colonialism (Nkrumah 1968:xi). Bibliography Articles J. Cogan (2009) ‘Representation and Power in International Organization: The Operational Constitution and Its Critics’ The American Journal of International Law, Vol. 03, No. 2, pp. 209-263 R. Emerson (1969) ‘Colonialism’, Journal of Contemporary History, Vol. 4, No. 1, pp. 3-16 J. Horvath (1972) ‘A Definition of Colonialism’ Current Anthropolog y, Vol. 13, No. 1, pp. 45-57 J. M. Owen, (1994) ‘How Liberalism Produces Democratic Peace’, International Security, Vol. 19, No. 2 (Autumn, 1994). pp. 87-125. D. Roman, R. Sandbrook (2004) ‘Globalisation, extremism and violence in poor countries’ Third World Quarterly, Vol. 25, No. 6, pp. 1007-1030. K. Watkins (2002) ‘Is the WTO Legit? ’ Foreign Policy, No. 132, pp. 78-79 J.Snyder (2004) ‘One World, Rival Theories’ Foreign Policy, No. 145, pp. 62-62. Books J. Art and K. Waltz (ed. ) (1988) The use of force London: University press of America. N. Crawford (2002) Argument and Change in World Politics, Cambridge: Cambridge University Press J. 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Toje (2008) America, The EU and Strategic Culture London: Routledge R. Young (2001) ‘Post-colonialism: An Historical Introduction' Book Chapters K. Manzo (2009) ‘Do colonialism and slavery belong to the past’ (ed. ) J. Edkins, M. Zehfuss, Global Politics and new introduction, London: Routle dge, pp. 244-271. V. Peterson (2009) ‘How is the world organized economically? ’ (ed. ) J. Edkins, M. Zehfuss, Global Politics and new introduction, London: Routledge, pp. 271-294. M. Pasha (2009) ‘How can we end poverty’ (ed. J. Edkins, M. Zehfuss, Global Politics and new introduction, London: Routledge, pp. 320-344 K. Anderson (2006) ‘Subsidies and Trade Barriers’ (ed. ) Bjorn Lomborg How to Spend $50 to Make the World a Better Place, Cambridge: Cambridge University Press, pp. 147-159. A. Bellamy, N. Wheeler (2008) ‘Humanitarian Intervention in World Politics’ (ed. ) John Baylis, Steve Smith, Patricia Owens The Globalization of world politics New York: Oxford university press. pp. 522-538. S. Hobden, R. Wyn Jones (2008) ‘Marxist theories of International Relations’ (ed. John Baylis, Steve Smith, Patricia Owens The Globalization of world politics New York: Oxford university press. pp. 142-157. N. Woods (2008) ‘I nternational political economy in an age of globalization’ (ed. ) John Baylis, Steve Smith, Patricia Owens The Globalization of world politics New York: Oxford university press. pp. 244-258 Websites Coco-Cola Company, http://www. coca-cola. com/index. jsp Europa, Copenhagen Criteria, http://europa. eu/scadplus/glossary/accession_criteria_copenhague_en. htm Europa, ENP policy, http://ec. europa. eu/world/enp/policy_en. htm