Pestel Analysis Economic Factors That Affect To Beer Industry Business Essay - Free Essay Example

Sample details Pages: 11 Words: 3423 Downloads: 4 Date added: 2017/06/26 Category Marketing Essay Type Analytical essay Did you like this example? According to Canadeans latest Global Beer Trends report, global beer consumption will increase 2 billion hectolitres by 2013.  However Canadean predicting an average growth rate of 2.8% between 2009 and 2015. According to Huanshu W., (12-02- 2009), the global high-end beer market will reach 65.5 million kiloliters by 2013, an increase of 74.7 percent over 2006. In Asia-Pacific, beer production will reach 13.5 kiloliters, an increase of 125 percent. Furthermore Huanshu W., (12-02- 2009), notes that the China will be one of the main market for beer industry. Global Beer Consumption Forecast Growth rate by Region Don’t waste time! Our writers will create an original "Pestel Analysis Economic Factors That Affect To Beer Industry Business Essay" essay for you Create order Source: Canadean Beer Service, https://www.canadean.com/News/Beverage_Industry_News.aspx Heineken Geographic distribution of consolidated beer volume, 2009 2008 Region In thousands of hectolitres Source: Heineken International (2011), Annual Report (2009), [Online] According to Heineken International (2011), Annual Report (2009), Heineken has market leadership position in Western Europe. Heineken imported various group brands into several Western Europe markets, affects to increase of the consolidated beer volume in Western Europe. Also Heineken is the largest brewing group in Central and Eastern Europe. Acquisition of Amstel helps to expand brand name of Heineken to success in Central and Eastern Europe. Although Heineken expand distribution in Africa and Middle East by brewing varieties of local brands and export the Heineken and Amstel premier brands across the region. According to Heineken International (2011), Annual Report (2009), Heineken has also built a strong market position in Americas by acquisition of FEMSA in year 2010.This made Heineken the national importer, marketer and seller of FEMSAs brands and expand distribution of Heineken brands in Americas. Also Heineken expand distribution in Asia pacific by made joint venture with Fra ser Neave, Asia pacific Breweries. Heineken is brewed at several of Asia pacific breweries throughout the region. Also Heineken beer has a dominant market position, especially in Thailand, Vietnam, Australia, New Zealand, Singapore and Taiwan Heineken International (2011), Annual Report (2009). Number of rivals in beer industry and their world market share Based on 2007/2008 Beer volumes estimates Source: Beer Institute (2011), Research, 2008 Annual Industry Update According to Beer Institute (2011), Research, 2008 Annual Industry Update, The top 3 brewers are Anheuser-Busch InBevs (ABI), Miller and Heineken.These brewers now produce over 50% of worlds beer consumption. Although 70% 80% average beer market share hold in other developed countries. Beer Industry Growth in China According to Heineken International (2011), Currently China is the largest beer market with a sales volume of 291 million hectolitres of beer in 2004 and an annual growth rate of about 15% with a population of 85 million people. China beer market competition is growing at outstanding rate because all the major beer companies try to increase their share of the market. According to AP-Foodtechnology.com, (06-Aug-2004), In China since 1997 total consumption of beer grew by 16.79 % up to 2003 and reach 24.87 billion litres, also total expenses on beer has risen by 85.99 % in current value since 1996. China government economic reform policies affect to growth of China beer market. Heineken Asia Pacific Breweries combine operations in China According to Heineken International (2011), Heineken and Asia Pacific Breweries (APB) was combining in year 2004.This combine leads Heineken to do production and marketing of beer and other strategic activities such as investments for plants, mergers and acquisition in China. Heineken beer will be locally produced to better fulfil the growing demand for Heineken beer in China. Heineken acquired Guangdong Brewery in China Heineken International (2011) noted that the total acquisition of Guangdong Brewery by Heineken is valued at EUR 57 million. Furthermore Mr Thony Ruys, Chairman of Heineken NV said, The Guangdong province is one of the most important beer markets in China. The strong position of Guangdong Breweries in this region offers an excellent platform for further growth of the Heineken brand in china. Guangdong is the largest and prosperous provincial beer markets in China with an estimated volume of 18 million hectolitres per year. Also the partnership with Guangdong Brewery will strengthen the position of Heineken and Asia Pacific Breweries APB considerably in china. Social Issues According to Nugent A.,(25-02-2005), in USA most of beer lovers change their choice to strong beers to light beers (low-alcohol) because they believe that is healthier than regular beers. Light beers calorie percentage is lower than regular beers. However some people argue that light beers are nothing but marketing strategy. Heineken was Introduce to the market in 2005 Heineken Premium Light Larger to compete with other light beer rivals in the market, allbusiness.com (01-10-2006).Furthermore Consumers have reduced their beer consumption because diet and health issues. These consumers think beer effect to body fat because of the percentage of calorie, therefore consumers switch to wine, malt-flavoured alcoholic drinks, BBC News (08-03-2005). Political The beer industry mainly suffers from increase of excise tax by governments and regulations at both federal and state level. Federal and state level regulations affect to beer industry when production, distribution, advertising and labelling. Also percentage of alcohol include in beer, Brewers Association.org. Heineken is a worldwide brewing company therefore governments regulations where it operates heavily affect for Heineken product sales and profit. One example is that government excise tax affect to Heineken sales in Russia. According to Andrew Cleary (21-04-2010), in 2010 first quarter Heineken sales decreased in Russia because excise tax increase by Russian government. Technological Technology helps to brewing industry companies to develop more efficient distribution channels and upgrade facilities with technology that increase the brewing process and improve the quality of the cultivate ingredients and harvesting process. This helps to increase consistency and reduce costs. Heineken is very rich in using information Technology for their production process because its worldwide operations are highly dependent on the availability of information systems, Heineken International (2011). Legal Legal issues affect for beer industry when packaging, advertising and labeling. When advertising beer products target consumer age must be over 21 years. Also some of the countries such as Middle East and other Islamic countries advertising for beer products are banned. Therefore Heineken has to obey rules and regulations according to countries where it operates. Heineken Enjoying Heineken Responsibly is the new marketing strategy that follows obeying the rules, EnjoyHeinekenResponsibly.com. Environmental Factors that affect to beer industry Recycling Waste According to Beer Serves America (2009), Beer industry brewers and brewer suppliers improvement of the beer packaging lead to increase of the recycle rate of waste plastic, paper, glass, aluminium and cardboard that are used to package manufactured Beer bottles, beer cans and packs. Recycled glass accounts for more than 30% of the materials used to produce new bottles. Overcome from this problem every major brewer companies are successfully recycling waste packages on their own recycle production units. In addition to their own corporate recycling programs, brewers and brewer suppliers encourage the communities they serve to recycle as well. Heineken International (2011), points out that glass is use 76% as a packaging material for beer in Heineken and they distributed beers usually in returnable packaging for reduce waste material environment pollution. Water Conservation and Treatment According to Beer Serves America (2009), Water is the primary ingredient for brewing process. Regular maintenance of faucets and piping allows brewers to quickly identify and repair water leaks; also water meters helps to monitor overall water usage. Some of the brewers in the industry have built on-site water treatment plants for reprocess and purify water for the brewing process. Some brewing industries use Bio-Energy Recovery Systems (BERS) to treat wastewater, reducing its strength and volume while creating a renewable biogas that helps fuel their breweries, Beer Serves America (2009). Heineken International (2011), points out that Specific water consumption at Heineken breweries in 2003 were 5.4 hectolitres per hectolitre of beer and it decrease of 3% compared to 2002. This improvement is because of investment in new water treatment systems. Wastewater from 68% of Heineken production units is treated in on-site plants or in urban plants. Other remaining waste water in production units is discharge after the treatment of on-site wastewater treatment plants. Energy Management Most of brewing industries use alternative sources of energy, such as wind, sunlight and Biogas to power their operations. Furthermore through constant monitoring and maintenance of facilities and adopting technology innovations and techniques use by brewers helps to produce beer with energy efficiency, Beer Serves America (2009). According to Heineken International (2011), Heineken use Renewable energy sources to generate some of the heat required in brewing process. These biogases take from the anaerobic treatment of wastewater. Heineken has 19 anaerobic treatment plants and its the 7th largest user, that use biogas as an energy source. The causes that are affected to change competitive structure and business environment in Brewing industry Acquisition in Beer Industry According to Brown A.,(10-06-2002),Acquisitions accelerate global expansion giving beer companies competent market share in target markets, as well as produce and distribute their own brands through the acquired facilities. Adolph Coors acquisition of the Carling in year 2002 basically gives it position for leading UK lager brand and also offers it platform to extend its own Coors brand throughout the UK. Brown A., (10-06-2002) points out some of the major acquisitions are in beer industry, in 1999 Antarctica and Brahma merged to form AmBev in 2000, Scottish Newcastle Plc Acquired Kronenbourg in 2001, Carlsberg A/S and Orlka ASA completed merger of brewing operations to form Carlsberg Breweries A/S in 2002. Heineken Acquisitions and partnerships According to Heineken International (2011), Annual Report (2009), Heineken has wide international presence through a global network of distributors and breweries. Heineken owns and manages one of the worlds leading portfolios of beer brands and is one of the worlds leading brewers in terms of sales volume and profitability. These following Tables Exhibits some of the major acquisition and partnerships with other brewery companies made by Heineken past years (2004 2010) around the world. These acquisitions are key economic factors that help to drive Heineken to build the long-term future of Heineken brands and business. Also acquisition of other breweries and made partnerships with other brewery companies ensure to improve financial performance and distribution strategies that create values for the company. Heineken acquisitions and partnerships (2004 2010) Global economy crisis Beer industry research: Beer sales depression in recession According to Canadeans news (17/11/10), economic downturn has resulted in reduced sales of beer in Europe and North America. Furthermore Canadeans news (17/11/10), noted that worlds top 4 brewers sale rate is less than in 2008. However, expansions into emerging economies have ensured profitable for large brewers such as AB InBev prominent producer South America and SABMiller prominent producer in Africa. Asia overtakes Europe as worlds biggest beer producer McCurry J. (12 August 2010), noted that economic crisis affected beer sales in Europe, but 5.5% rise in Asias beer production followed .Furthermore he noted according to a study research by the Japanese brewing giant Kirin Holdings, Asia has overtaken Europe as the worlds biggest beer producer for the first time in 35 years. British economic crisis, the lowest level of beer consumption in the UK since 1948 -Star City News According to StarCityNews (03-09- 2010), noted that consumption level of alcoholic beverages in UK has been decrease. Furthermore StarCityNews (03-09- 2010), points out using APBI report, that beer drinkers consume only 13% lower than the year 2004. This percentage is below the average number of beer drinkers in Europe Union countries. Also StarCityNews (03-09- 2010), noted using APBI report data that decrease of the alcoholic beverage consumption affect due to the economic recession in UK and success of the message responsible drinkers which campaigned for the British society for reduce British people drinking habits.Furthermore StarCityNews (03-09- 2010), points out that according to Alcoholic Beverage Industry (APBI) report the tax on beer in the UK also affected to reduce the consumption of beer in UK. UK beer sales fall According to Canadean(27/10/08),news, noted that using British Beer and Pub Association (BBPA) report results that overall sales of the beverage in UK decreased by over seven per cent between July and September in 2008, which is thought to be equal to a 1.8 million pint fall. Innovations to Beer Industry (Heineken Draughtkeg) According to TalkingRetail.com (04-05-2007), Innovation of the Heineken unique stand alone Draughtkeg beer system revolutionized the beer industry. Furthermore invention of the DraughtKeg system helps to increment the growth value of the beer category. Competitive Position of the Heineken by reviewing five competitive forces Threat of Substitute products (high) Heineken threat of substitute products is high because customers have many other substitute beverages, such as Liquor, wine, cider, flavoured alcoholic drinks, and non alcoholic beers. The mostly competition come to the industry from the Wine, Liquor and other malt flavoured alcoholic drinks, because they also target the same demographic group. Present market popular substitute product against beer is Smirnoff Ice which is an alternative beer that brewed using a malt base, www.smirnoff.com. Threat of new Entrants (low) Heineken is a large beer company therefore new entrants is low. Also there are many microbreweries throughout Heineken brand distribution countries. But it is difficult to microbreweries to compete with larger companies such as Heineken because advantage of economies of scale, Advertising expenditures and start up capital in beer industry is high. This makes the industry is not attractive for new entrants. Bargaining power of suppliers (low) Bargaining power of suppliers is low. Heineken operates some of own local sourcing projects and Agriculture projects to get raw materials such as Sierra Leone Sorghum Project which is local sourcing project in Sierra Leone is part of the companys Africa-wide strategy to procure at least 60% of its raw materials locally, Heineken International (2011). Due to the size of Heineken, suppliers would not want to lose business with Heineken. In addition Heineken manage supply chain code, both in terms of ethics and the environment therefore Heineken has control possibilities over many of its product inputs, Heineken International (2011). Bargaining power of customers (medium) The bargaining power of customers is a medium threat for the beer industry. Such as taste of the beer, calories, price, and alcohol percentage are concerned by customers when they are going to buy beer product. There is also price comparison and sensitivity in the beer market. According to (comparesupermarketprices.co.uk), Major companies are price their products to the market demand price because among competitors there is huge competitive for price, package and discounts that are given to customers. If one company give a discount other competitors also do. Therefore Customers also have low switching cost because of competitive price. Jockeying for position with rivals (high) Competive forces within beer industry are high. Heineken main competitors are Anheuser-Busch, SABMiller and Carlsberg. Anheuser-Busch has 26% global market share and SABMiller has 17% global market share, Beer Institute (2011), Research, 2008 Annual Industry Update. There is low variation in products and advertising within the beer industry, if one firm launches a new advertising campaign, others will follow. Similarly if one firm launches a new beverage, others will try to copy that beverage. One of the example is Light Beers, according to Miller Brewing Company they produce first Light beer to the USA market in 1977 after that Anheuser-Busch introduce their light beer Bud Light in 1982 and heavily advertised their brand to become first in the market. Furthermore in the beer industry there is competition from both local products and other major brands import products, therefore Heineken has to compete with many type of competitors. Also other threats that affected for competitive po sition are mergers and acquisitions in the beer industry. But Heineken is a large company and recent acquisition of Scottish and Newcastle in 2008 and FMSA in 2010 increased the Heineken global market share, Beer Institute (2011), Research, 2008 Annual Industry Update. Competitor Analysis Heineken Major Competitors are Anheuser-Busch InBev, SABMiller and Carlsberg. Within these 3 competitors Anheuser-Busch InBev, SABMiller are the main competitors to Heineken because of their global market share strength, beer brand and portfolio strength, company revenue and sale of beer volume. Anheuser-Busch InBev According to AB-InBev.com annual report (2009) Anheuser-Busch is the worlds largest beer company and it is the dominant market leader in USA. Furthermore it is the largest global brewer with 25% global market share and one of the worlds top 5 consumer products companies, based in Leuven, Belgium. Anheuser-Busch InBev generated revenues of US$36,758million for 2009 and it portfolio contains more than 200 brands. Anheuser-Busch InBev target consumers are from the lower class of society to the upper class. They have a wide range of precious beer brands and beverages to offer each social class.Anheuser-Busch InBev holds the 1st or 2nd position in 19 key markets. The company employment strength is approximately 116,000 people based in operations in 23 countries around the world, and manages a portfolio of over 200 beer brands including globally recognised brand Budweiser. (www.ab-inbev.com). Furthermore Anheuser-Busch InBev operates in six operational zones, Latin Am erica, North America, Western Europe, Asia Pacific and Central and Eastern Europe. The company strives to be the Best Beer Company in a Better world. SABMiller SABMiller is the worlds second -largest brewing and bottling company measured by revenue and it is only second to Anheuser-Busch. SABMiller based in South Africa, operates in 75 countries across Africa, Australia, Europe, North America, China and India and sells nearly 213 million hectolitres per year and account for 13% global market share. According to SABMiller.com, its owned more than 200 brands and 139 brewers with total number of 69,116 employees. SABMiller revenue for 2009 was US$18,703million SABMiller.com, Annual Report (2009), [Online]. The SABMiller premium beer brand is Pilsner Urquell and also SABMiller is the worlds largest bottlers of Coca-cola products, SABMiller.com. According to SABMiller.com, their mission is to own and nurture local and international brands that are the choice of the consumer. Their strategic priorities are Develop strong relevant brand portfolios that win in the local market, Create balanced and attractive global spread of business, an d increase the profitability of local business, leverage skills and global scale, SABMiller.com. SABMillers significant presence in Africa is the major threat that Heineken to success in Africa. Moreover SABMillers strengthened than Heineken by revenue for year, market share, brewers owned worldwide where it operates. Carlsberg According to Carlsberg.com, Carlsberg is the worlds 4th largest brewery group based in Denmark and employing around 45000 people and account for 7% global market share. The Carlsberg portfolio includes more than 500 brands and well known international premium brand is Carlsberg. In 2009 Carlsberg Group sold more than 135 million hectolitres of beer and sold more than 150 countries, revenue for 2009 was DKK 59,382 million, carlsberggroup.com. Under Export and Licensing agreements Carlsberg sells its products to countries where it has no breweries. Furthermore Carlsbergs products vary particularly in volume, price, target consumers and geographic locations. Carlsberg.com notes that The Carlsbergs ambition is to be thefastest growing global beer company. Carlsberg does not have large footprint according to Heineken, Anheuser-Busch InBev and SABMiller. But its premium brand name Carlsberg has a significant position in Asia. Competitors Global Products Price and Market Share Comparison (Based on 2009 data) Company Name and Global Rank Global Market Share (2009) Revenue (2009) Globally available Brand Name Description about product Price in UK (02-03-2011) 01.Anheuser-Busch InBevs 25% global market share US $36, 758 million Stella Artois Number one Belgian beer in the world and is distributed in over 80 countries. 1.50 (660ml) Becks The Beck brand is the number one export brand in Germany, and present in more than 100 countries worldwide. 1.50 (660ml) Budweiser The leading brand of Anheuser-Busch InBev brewed to be universally popular brand and first national beer brand in USA introduce in 1876. Its called the Great American Larger. 1.94 (660ml) 02.SABMiller 13% global market share US$18,703 million Grolsch Available in over 60 countries worldwide and origin in Netherland. Unique Package style makes it stand out from others. 1.87 (450ml) Miller Genuine Draft Origin in United States, Available in over 68 countries. 1.16 (330ml) Peroni Nastro Azzurro Origin in Italy, Also Available in austrailia, Africancountries,France,india, peru,Poland,Romania, Russia,Japan,UK and USA. 2.13 (660ml) 03.Heineken 9% global market share ÃÆ' ¢Ãƒ ¢Ã¢â€š ¬Ã… ¡Ãƒâ€šÃ‚ ¬16.13 million Heineken The Heineken the world drinks today is still brewed using the original, unrivalled recipe invented three generations ago by the Heineken family. Available in more than 170 countries. 1.99 (650ml) Amstel Amstel is the market leader or one of the top-ranked brands in Greece ,Netherlands, France,Hungary,Spain,Italy,USA and South Africa. Available in more than 120 countries. 1.46 (330ml) 04.Carlsberg 7% global market share DKK 59,382 million Carlsberg Carlsberg pilsner was launced in 1904, and its the flagship brand in the Carlsberg family. Available in where Carlsberg operate countries. 0.85 (440ml) Turborg Turborg origin was Denmark but now available in more than 70 different countries. Turbog is the youth brand in the Carlsberg international portfolio. 0.89 (275ml) Source: Above table Price Comparison according to https://www.comparesupermarketprices.co.uk,

Appreciating other Religions Essay - 684 Words

Appreciating other Religions Religion is a set of practices and beliefs that allow human beings to search for the meaning of life and the purpose of their existence. These common practices set the foundation for such beliefs to have validity. Every individual must wonder why he/she exists on earth. Questioning about the purpose in one’s life and whether or not there is meaning allows an individual to seek a supernatural, Supreme Being or some form of deity. Technically, religion is essentially the passing of stories, embedded with morals and values as well as being a way of life. During this course, I learned that religion is mainly needed for guidance, physically and psychologically. Since people are so easily vulnerable to be†¦show more content†¦For Muslims, the reward for following the 5 Pillars of Islam is pleasant dwellings in Gardens of Eternity. These are the sole reasons for having the religions in the first place. 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Ryanair Case Study Free Essays

Nova School of Business and Economics 2012/2013 DOGFIGHT OVER EUROPE: RYANAIR Case Study This set of questions refers to Version (A): 1. Which kind of customers was Ryanair trying to attract when, in 1999, Michael O’Leary took charge of the firm? Those with a low price elasticity of demand or those with a high price elasticity of demand? Explain. Considering that we are talking about the same product, in an industry with many firms, where producers and consumers know all quoted prices and where the consumers can identify the product as homogeneous, it is fair to say that we are talking about a scenario close to perfect competition, thus demand for the product is very elastic. We will write a custom essay sample on Ryanair Case Study or any similar topic only for you Order Now So, Ryanair is trying to attract high price elasticity customers. Accordingly to the article: Ryanair marketed itself as â€Å"the low fares airline†; before open new routes, the company cared about low landing fees, low turnaround costs in order to be able to charge low fares to customers; it made agreements with secondary airports, where they did not pays fees (in fact those airports paid to Ryanair to use their locales); it tried that 70% of the available seats in the two lowest fare categories; it made fewer restrictions on its tickets (important for who had extra bags, or who wants to change the flights in order to pay less); it observe competitors, so it would be able to apply a lower fare; its customers were a mix of leisure travelers (70-75%) and business travelers, mostly from small and mid-sized businesses (25-30%). ifferences in airfares could persuade some leisure travelers to visit one destination rather than another; it has chosen the cost leadership so it seeks to be the lowest cost producer in Europe by selling standardized, mass products and Ryanair’s profit maximization was through lower fares in order to attract more customers contrarily to competitors where they maximize their profits through find opportunities to increase fares without losing customers. So accordingly to the customers with a high PED (price elasticity demand) following the formula (Q/P) x (P/Q): a little negative variation in prices (decrease in fares), will originate a big positive variation in the amount sold. 2. Why was cost cutting so essential for the strategy chosen? First of all it is important to refer that in 1991, Ryanair was facing a bankruptcy. In response, ‘the company removed all frills from its service, cut its costs to the bone, and dropped its fares to levels unheard of in Europe’. It became priority, to connect all the efforts to preserve and generate cash. Company’s main concern was charge lower fares in order to attract high elasticity price demand customers, with this new strategy, the company became low-cost or low-fare airlines and to maintain it within these measures the firm needed to adapt its strategy to new restrictions, which means, cost cutting. The flag airline faced a really competitive market (in 1999), and to keep competitive the firm had to keep its strategy, and for that was necessary cost cutting. Cost cutting, if it is efficiently done, brings more profits. Besides, using the model used in classes, â€Å"Bertrand – Asymmetric Model† where it says that if certain firm charges ‘P1’ for its product, and other firm charges ‘P1-e’ (because it is able to reduce its marginal cost), so the second firm will get all the demand. Well, Ryanair did not get all the demand, but is observable in ‘Exhibit 4’ that the company carried approximately 60% (353/575) and 56% (180/321) of the passengers on the route ‘Dublin-Manchester’ and the route ‘Dublin-Glasgow’ respectively. 3. Ryanair uses a performance-based pay scheme to compensate its flight attendants. Why? A performance-based payment scheme combines the interests of both flight attendants and the company. This happens because obviously, the flag airline will gain more if the attendants are working efficiently (making an effort to sell the snacks, drinks, or whatever they have on board; being nice with the passengers, and h elp them as much they can), then if they are lazy during work. If a salesperson receives a fixed wage, no matter how much it sells, then he or she will not have any incentive to sell more than the expected. But, of course, if they receive an extra commission for each sale, then the salesperson will do the effort that it maximizes its utility. By having a higher effort, the workers have a higher payoff which maximizes its utility. A sector payment or an in-flight sales commission allowed flight attendants to earn 10% more than those from competitors and allowed the firm to fly to 50% more sectors than its rivals. Consequently, a higher number of flights increase the profits of Ryanair. The company’s rapid growth permitted job mobility, for instance, a flight attendant could take a job at the yield operations management on the headquarters; job mobility was a solution for the company to avoid coordination problems. 4. Why wasn’t this performance scheme also offered to maintenance personnel? The majority of European airlines pay their employees based on the length of their tenure with the company. However, Ryanair only applied this to their maintenance and engineering personnel. As a company obsessed with cash, the most important part of the business was the operational part, the one which actually gave money to the company: flights and duty-free revenues. So, this was the only personnel where it was justifiable to apply a performance-based pay scheme. Engineering and maintenance were paid based on their formal qualifications: more qualified personnel would do the job more accurately. Maintenance personnel only represented 9,34% of the total employees as of March 31, 1999. Besides the company concerns about security: let’s say that if they receive a fee for each plane that is ‘fixed’, they will want to fix the maximum planes, as fast as possible, and that may not be the best for the passenger’s security. It’s more important to seek personal with higher qualification, and pay them a reasonable (but fixed) salary, because this is kind of business where mistakes cannot happen, and so, the personnel has to be focus in its work, and not in the ‘extra money’. 5. Can you suggest means of rewarding maintenance personnel that would induce high productivity without hindering Ryanair’s strategy? Ryanair’s strategy is keep low fares so it will be able to keep â€Å"fiercely competitive† and â€Å"ferociously cost conscious†, which implies, minimize costs (everywhere where it is possible), so increase their salaries would hurt the company’s strategy. Given this, it would be a good idea to search for some ‘non-monetary’ alternatives. First of all give them some lectures about how important is to do a good maintenance of the aircraft, aware them that a single mistake can be fatal for hundreds of people (unless they are murderers or mentally sick people they will get alert! ). They can make promises to them in the long-run like if there are no mistakes, Ryanair’s credibility increases, and that will attract more passengers, which means more revenues, which means they can increase wages (and keep the same profit). Monitoring them is a good way of keep the high productivity, this measure leads to an increase in veracity of the employee’s reports, in other words, if an employee knows that he or she is being watched, then it will for sure do a better job. The creation of bureaucracy that implies the creation of rules in order to limit the employee’s actions, these rules can be benefit for the maintenance workers, for example, the creation of a rule that says it is mandatory to do a 15 minutes break, every two hours. 6. What are the likely consequences for Ryanair of a steep decrease in the price of jet fuel brought about by a significant decline in the price of oil? Consider both the direct and the strategic effect. All the airline companies are strategic complements, which mean that if one firm takes one action, the others will respond with aggressively actions (upward sloping). And they exhibit tough commitment, in other words, is a commitment that is going to have an adverse effect on the competitors. In Bertrand (this case), the company makes a tough commitment, no matter how much its rival changes the price, the firm’s price will be lower than it would have been if there were no commitment. The companies make tough commitment to avoid that new entrants increase the price competition. Given this, we built the following graph: The red line stands for direct effect and the blue line stands for substitution effect. The direct effect is the commitment’s impact on the present value of the firm’s profits, assuming that the competitors’ behavior does not change. Applying to the case is basically the profits that all the others airline companies would earn if Ryanair would not decrease its prices as well (point 1 to point 2). The substitution effect takes into account the competitive side effects of the commitment, this means, how much does the tactical decisions of the rivals change, under the commitment conditions. Basically is the adjustment made by Ryanair after the competitors decrease their prices (point 2 to point 3). Decline in the price of oil, brings a decrease in the price of jet fuel. With this shock, all the airline companies will decrease their prices, P1*’. As it was said before, Ryanair always observes its competitors, and then make its move, so they will decrease their tickets’ prices even more, P2*’(one of the principals of tough commitment). As it says in exhibit 2, ‘fuel ; oil’ constitutes approximately 16% of its costs (6. 0/37. ), so despite it is not visible on the graph (due to lack of data related to prices), the prices of the flight’s tickets will decrease considerable, because (repeat) this is a really competitive market, and the airline companies find themselves in a tough commitment, that it will originate a decline even bigger that the one it would happen without though commitment. It is important to refer that the company’s product has a low-level of horizontal differentiation because the difference between the products of each one of the companies is based on the quality in the in-flight zone. And there are tons of people who simply do not care about that. For those ones, their only concern is to get to their destination. 7. What are the most serious threats that Ryanair faces? Explain your perspective. Europe Union’s measure â€Å"Under the package, carriers were given full freedom to set fares. Any company was allowed to start an airline provided that it had majority European ownership, adequate financial backing, and the ability to meet safety requirements. The package permitted any European airline to fly any route between two EU countries and, starting in 1997, any intra-country route between two European cities. † This measure means no patents’ system, which means that as long as there is positive profit, other companies will enter in the market. Without proper cautions this may lead to perfect competition, where the companies will lower their prices until it equals the marginal cost, which implies that the profit will be zero. Even worse than that is if Ryanair adheres to a new technology (in order to decrease its marginal cost), and if we are in a situation where the other companies can copy and use the technology discovered by Ryanair, the company will have negative profits. Contrarily if the competitors are able to decrease its marginal cost, and the antitrust agencies that may lead to monopoly (if there is a patented system that says that is illegal to copy and use technology of others firms). Possible merges by competitors, which would increase their market share. For example, in 2002, easyJet purchased Go for ? 374m. Ryanair may face laws taken by the antitrust agencies that may limit its actions, for example the use of ‘dumping’ strategy (‘monopolistic strategy’ where the firm sells its products below their production cost in order to eliminate competition, and when it occurs, the firm increase its prices again). Ryanair has faced aggressive marketing campaigns and charity efforts by Virgin Express, subcontracts and reliability on third parties (lower costs), total direct selling and a very informal environment by easyJet, predatory pricing by British Airways’ Go and in-flight entertainment and comfort by Debonair. The last one went bankrupt but all the others provide serious competition to Ryanair despite not achieving the profitable results desired. How to cite Ryanair Case Study, Free Case study samples

Jane Fonda Essay Example For Students

Jane Fonda Essay Who is Jane Fonda? This is a question often asked by many people with no one right answer. She is an actress, a fitness guru, a former communist sympathizer, and most importantly, an antiwar activist during the Vietnam War. Although Jane Fonda was honored as one of the ?100 Women of the Century?, her infamous name is one Vietnam veterans will never forget. As American soldiers were losing their lives, she traveled into enemy-territory, defaming American POWs, many of whom were tortured to death. Jane Fonda, a revolutionary woman whose efforts not only demoralized American servicemen but also created a personal war that would last a lifetime, mixed politics with film to make her an infamous legend. Born into a family of wealth, Jane Fonda evolved from a distinguished actress to one of the most controversial figures in Hollywood. Descending from prominent figures in history, including Samuel Adams and Jane Seymour, Fonda grew up with very little parental love and attention. Her father, actor Henry Fonda, rarely saw his daughter except for the occasional publicity photo-shoot. Her brother, Peter Fonda, and Jane spent most of their childhood at numerous boarding schools. ?The beginnings of Fondas passion for communism can be ascribed to her early boarding school in Paris, where she befriended French communists and Vietcong representatives assigned in Paris? (Mraffin 1). Back in the United States, Jane made numerous theatrical appearances with her father. Developing her own fame, Jane began to take on numerous risque films, her most famous being Barbarella. Tired of her sex kitten roles and appearance, Jane took on a more serious role, titled They Shoot Horses Dont They? and also d eveloped an interest in politics. Jane watched ?women leading marches, women getting beaten up, women walking up to bayonets, and they were not afraid. That experience completely changed her, and it began her searching for what was behind it all? (Andersen 171). March 8,1970, marked Janes first entry into the world of militant protest. Jane, a strong advocate of ?Coffee houses?, or hangouts where servicemen could get a taste of antiwar propaganda and some coffee, was also drawn to the Black Panthers, the feminist movement, the plight of the American Indian, welfare mothers, and the farm movement. Jane decided that ?because of the success of my films, I have more power-and I intend to use it? (Andersen 169) and the best way to tackle all these issues was by way of a cross country tour. Using her acting fame, Jane obtained appearances on TV talk shows, and became a feature speaker at numerous college campuses, leading countless anti-war demonstrations. Her speeches could be summarized by her statement on November 22, 1970: ?I would think if you understood what communism was, you would pray on your knees that you would someday become Communists? (Mraffin 1). While traveling across country, Jane dropped in on Indian reservations, army bases, and G.I. coffeehouses, hoping to convert nonbelievers. Whenever Jane spoke at a Coffeehouse, she was speaking to the converted?mostly disillusioned draftees, rearing no more then a few thousand spread across the country, a small fraction of the nations fighting force (Andersen). Within time though, Janes interest in everything but the Vietnam war diminished. No longer content with spreading her radicalism within the home ranks, Fonda decided to trade her glamorous attire in for a pair of Ho Chi Minh sandals, and Vietcong pajamas. She left for her two week stay in North Vietnam on July 8, 1972. Jane, with several cameras slung around her neck, was led on a tour of bombed-out hospitals, schools, factories, villages, and dikes. T he devastation left Jane shaken, but not enough to stop her from doing some morale boosting for the enemy. It was then that Jane climbed aboard a North Vietnamese anti-aircraft gun, used to shoot American men, and peered through the gun sight looking for one of those blue eyed murderers (Sampley 1). Still, if She had stopped then, and returned home, her trip may have soon been forgotten. Instead, Fonda volunteered to make a series of ten propaganda broadcasts over Radio Hanoi, designed to demoralize American servicemen while encouraging the North Vietnamese to fight harder and kill more Americans. The broadcasts, along with torture and starvation were used in attempt to brainwash American POWs. Colonel George Day, a ranking officer at the Hanoi Hilton, when referring to the broadcasts, once stated Its difficult to put into words how terrible it is to hear that siren song that is so absolutely rotten and wrongIt was worse then being manipulated and usedShe wanted the North Vietnamese to win. She caused the deaths of unknown numbers of Americans by buoying up the enemys spirit and keeping them in the fight (Andersen 255). In addition to the broadcasts, North Vietnamese rounded up POWs to meet with Jane Fonda. Those who refused to meet with Fonda were tortured. Civilian Michael Benge, an official of the agency for International development, was captured in Cambodia, and when refused to meet with Jane Fonda, was forced to kneel on the cold cement floor of his cell holding a steel rod in front of him for two days. Every time the rod dipped to the floor, he was brutally beaten. When he finally returned home with the other POWs years later, he was missing part of his right foot (Andersen 256). Back in America, Jane informed the public that the American soldiers were being well treated and not tortured. Her outrageous claims were later exposed when American POWs returned home and told of years of agonizing torture and inhumane treatment. Fonda responded not with an ap ology but with an accusation calling the POWs liars and hypocrites (Sampley 1). Disillusioned, Jane took time to assess the damage she was doing to her career. .ue1f21f5e8a4b4ef28b80d8967d59ba50 , .ue1f21f5e8a4b4ef28b80d8967d59ba50 .postImageUrl , .ue1f21f5e8a4b4ef28b80d8967d59ba50 .centered-text-area { min-height: 80px; position: relative; } .ue1f21f5e8a4b4ef28b80d8967d59ba50 , .ue1f21f5e8a4b4ef28b80d8967d59ba50:hover , .ue1f21f5e8a4b4ef28b80d8967d59ba50:visited , .ue1f21f5e8a4b4ef28b80d8967d59ba50:active { border:0!important; } .ue1f21f5e8a4b4ef28b80d8967d59ba50 .clearfix:after { content: ""; display: table; clear: both; } .ue1f21f5e8a4b4ef28b80d8967d59ba50 { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .ue1f21f5e8a4b4ef28b80d8967d59ba50:active , .ue1f21f5e8a4b4ef28b80d8967d59ba50:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .ue1f21f5e8a4b4ef28b80d8967d59ba50 .centered-text-area { width: 100%; position: relative ; } .ue1f21f5e8a4b4ef28b80d8967d59ba50 .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .ue1f21f5e8a4b4ef28b80d8967d59ba50 .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .ue1f21f5e8a4b4ef28b80d8967d59ba50 .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .ue1f21f5e8a4b4ef28b80d8967d59ba50:hover .ctaButton { background-color: #34495E!important; } .ue1f21f5e8a4b4ef28b80d8967d59ba50 .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .ue1f21f5e8a4b4ef28b80d8967d59ba50 .ue1f21f5e8a4b4ef28b80d8967d59ba50-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .ue1f21f5e8a4b4ef28b80d8967d59ba50:after { content: ""; display: block; clear: both; } READ: Police brutality EssayThere was no official blacklist like the one that ended so many brilliant careers during the McCarthey era of the 1950s, but fewer and fewer scripts were heading Janes way. Jane was in the new age of being ?graylisted.? Robert Losey, a director who fled the country during the McCarthey era, understood Janes predicament. He invited her to play the lead in a film titled Dolls House, but Losey could not find a distributor willing to gamble with a film starring ?Hanoi Jane?. Convinced that she had alienated too many powerful producers, Jane formed her own production company called the IPC. Jane decided that the IPC would make socially relevant films whose profits would go to political causes. Most of the IPCs earlier films were failures until the year 1978 when Jane decided to do a Vietnam film. The movie titled Coming Home was about the consequences of war as seen through the eyes of a military wife (Andersen 283). Although the film was a major gamble for Jane, it proved to be a success. After Coming Home, films began rolling in for Jane. Her comeback in Tinseltown had been nothing less then phenomenal, but she had not and probably will never regain respect from Vietnam veterans. Even to her last years in acting, she had been forced from shooting locations.