Macro Environment Influences Of The Airline Industry Tourism Essay

Macro Environment Influences Of The Airline Industry Tourism Essay In terms of the case, it suggests that the environment of airline companies is not very stable, especially the increasing price of fuel which is the key driver of change. From Ryanair profit statement (Exhibit 1a) it shows the fuel and oil cost has increased by â‚ ¬200 million from 2005 to 2006. The increase in fuel costs is 74 percent. The impact to the airlines companies is obvious and the budget airlines may face the trouble more so than normal airlines. Moreover, airline companies also have to concentrate on some other issues. For example, according to the case, they are facing the risks from terrorist attacks which are difficult to predict. It is not difficult to find the changeability, however it is complex to the airline environment. Some factors, such as legal action and customer demand, also have influence on them. Some of these such as the price of fuel and oil can be predicted, while some of them cannot. Stage 2 Audit environmental influences The Pestel Analysis is employed to identify macro-environment influences of the airline industry. Political: Government wants to strengthen the economy and, consequently, will support local airlines by setting rules, such as preferential rights. Every government however, will probably do so. Therefore theres no obvious advantage between competitions. The political issues have a wide range of effect, so they are not the key points that budget airlines are facing. Economic: This is identified as the most crucial factor to airline companies, especially to budget airlines. The influences refer to the macro-economic factors such as the national growth rates and the exchange rates. As budget airlines, they will pay more attention to the operation costs such as fuel cost. It became a big issue for budget airlines because of the increasing cost of fuel. That may reduce the advantages and the companies will be less competitive than before. On the other hand, the recession will lead more people to choose budget airlines. Social: With the development of Asian countries in particular China, there are more and more people deciding to study or travel in Europe. In recent years, the lifestyle of local people has also changed. They tend to travel abroad to enjoy their lives. Most of these people are not wealthy such as student. The budget airlines therefore, will be their best choice to reduce the travel costs. Technological: The innovation of technology helps the airline companies reduce costs and carry out tasks more effectively. The new type of aircraft can help to reduce the burning of fuel; and new technology can also make the security check more efficient and accurate. Environmental: European countries pay more attention on environmental issues, especially greenhouse gases from carbon emissions. Moreover in terms of the case, airline companies have to pay the environmental taxes for the contributions they make to global warming. In particular, it is bad news for budget airlines. Costs will increase and the companies want to maintain good brand image in the consumers perception. Furthermore, noise pollution and energy consumption cannot be ignored under such conditions. Legal: Some legal actions such as preferential airport rights are directed against the specific airlines. As budget airlines, which have higher competitive power, they should pay more attention to the legal forces to prevent loss. On the contrary, they can also take the initiative over illegal aid to rivals. Stage 3 Determine industry specific factors (this stage will be analysed in Question 2) Stage 4 Identify competitive position (this stage will be analysed in Question 3) Stage 5 Identify key opportunities and threats There are many potential opportunities for the airline companies. For instance, the recession may lead to more people choosing the budget airline rather than the expensive ones; new technology which helps to reduce the usage of fuel; government set the tax at a lower percentage. On the other hand, the increasing cost of fuel may be the most significant issue most budget airlines face. Whats more, the compensation to passengers, terrorism and security, and customers satisfactions will all have potential negative impacts on the airline. In order to achieve lower costs, budget airlines will have to reduce costs from many departments and operations. Thats why lots of customers are not satisfied with the budget airlines except for the price. Question 2 Prepare a Porter Five Forces analysis of the budget airline industry. Express Ryanairs perspective of these forces. The threat of entry There are high barriers to enter the budget airline industry. i) High investment requirements. Economies of scale are important in the airline industry. It is difficult for new entrants to match others existing competitors. In addition to this, the operational experiences cannot be acquired in such short space of time. ii) Expected retaliation. Retaliation will take place when new entrants appear for budget airlines, it will probably be in the form of a price war due to costs of entry being very high for them. iii) Legislation or Government action. Government wont let new entrants enter the market if the industry is saturated. With regards to Ryanair in the budget airline industry, there will not be large impacts to existing budget airlines if new entrants appeared. Budget airlines always focus on the costs and price, so does Ryanair. According to the case, Ryanair was the first budget airline in Europe and now its ticket prices are much lower than the other rivals. Therefore it will be impossible for new entrants to set a low price to win the market. The threat of substitutes Before discussing the threats, some comparative data is showed below. Round Trip by Ryanair Flight: London Stansted Milan Going Out Regular Fare Adult 8.99 GBP Tue, 2 Dec 08 Flight FR 4184 8:15 Depart 11:15 Arrive Coming Back Regular Fare Adult 12.99 GBP Sun, 8 Dec 08 Flight FR 4185 6:45 Depart 7:50 Arrive (Source: Ryanair.com) One way by Rail Europe: London (ST Pancras) Milan Standard Class Adult 227 GBP Tue, 2 Dec 08 8:40 Depart 21:20 Arrive (Source: Raileurope.co.uk) Most of the travellers will prefer the short journey, in addition to the cheaper way to travel. From the tables it is obvious that taking a plane from Ryanair is much cheaper than taking the train in a similar situation. Although some airlines may be expensive, budget airlines such as Ryanair will usually be the best choice. The impact of substitutes, therefore, has less impact on the budget airlines. The power of buyers Buyers of airlines tickets can sometimes be the travel agency.  In other cases, Ryanair caters to ultimate consumers. Majority of the buyers are not concentrated buyers and they come from all over the countries. Individuals can select the budget airlines according to their preference, because the switching costs are low and the differentiation of such service is weak. It is extremely expensive for people to own an aircraft. When there is a choice of budget airlines to use, with low prices. So there is a low buyer competition threat. Like Ryanair, with less concentrated buyers and buyers competition threat, the power of buyers is low. The power of suppliers The high power of suppliers may be one of the most significant threats among the budget airline industry. The increasing price of fuel, which leads to a high cost for airlines, is a basic issue they are facing. As we know, fuel industry is now concentrated in the hands of few producers. Therefore, in this situation it is difficult to cut the price for this essential material. In addition to this, it is useless to change fuel suppliers when the global price is growing. Moreover there are no practical substitutes. Ryanair is facing this problem with other budget airlines. Furthermore Ryanair sells all the ticket directly through the website. Thus there is no intermediary. Competitive rivalry Rivalry is influenced by these four competitive forces and each of them may have different levels of impact on the competitive rivalry. In this market, every airline provides the same services which are poorly differentiated. Low differentiation and switching costs in this industry, therefore, cause the price competition. Ryanair, which has the first mover advantages, still holds the dominant position. Although many of the competitors were losing money or even have been taken over, Ryanair remains steady in incremental growth. For industry growth rate, this industry is in the maturity situation of life cycle, which means the growth is low. Price war is therefore playing a crucial role throughout the competition. Question 3 Evaluate Ryanairs particular strengths and weaknesses and explain, with reasons, what Ryanair must do to retain a sustainable competitive advantage. As the first-mover of budget airline industry, Ryanair still holds the dominant lowest-cost position. This is also the one of the strengths it has. Whats more, Ryanair was announced being the most profitable airline in the world according to the case. The revenue is still increasing, despite the price of fuel did not stop growing in recent years. The brand image of Ryanair is also one of its strengths. Customers are attracted by the lower price. Its traffic is the highest among the competitors (see Exhibit 2) and it is still increasing due to the enlargement of the company. On the other hand, there are still some weaknesses of this budget airline leader. In terms of the case, Ryanair win the market mostly depends on the costs. However, the costs of its major raw materials are increasing rapidly these years. This will be a serious issue. Further, minimize costs largely will cause the lack of service and training quality and so on. The Skytrax star rating (See Exhibit 2) indicates Ryanair is below the average level. Besides, competitors contribute big influence to Ryanair. For example, Easyjet which is a young upstart of the European budget airline industry grows quickly with a large number of market shares. It is obvious Ryanair makes success base on its price advantage, and how to sustain this advantage become very crucial issue in recent situation. Keep first mover advantages. Long history with experiences, well-known brand image and economy of scale, these are the unique resources of first mover advantages. It is difficult for competitors to get these resources at a similar level. Therefore, in order to prevent the competitors from copying the same strategy as cost reduction, Ryanair must make good use of these unique resources and try to dominate the market. Technology. Purchase and introduce the latest technological support. Although the fixed costs will be high, they can help the airline carry out tasks more efficiently and effectively such a new security check machine. Moreover it can also help to reduce the variable costs. For example, according to the case, new type aircraft produced 50 percent less emissions, 45 percent less fuel burn and 45 percent lower noise emissions per seat. They help Ryanair reduce the fuel cost with a lower pollution to environment. Unique cost structure. A cost structure which aims to minimize the costs must be set up. In particular to fuel cost, the fluctuations are subject to unpredictable and volatile world events according to the case. It is important for Ryanair hedge the risks before the price goes up suddenly. On the other hand, choosing the secondary and regional airport destinations is a good way of the structure. Moreover, the internet is used to reduce distribution costs. Service quality / Customers satisfaction. Customers will normally associate low price with low service benefits. Ryanair was voted the worlds least favourite airline due to its bad service such as unfriendly staff and poor legroom. However it still won a great number of customer base on the price. Thus if some competitors cut down the ticket price to a low level, Ryanair will get into a big trouble due to the similar prices but lower service quality. Therefore it must not only focus on the price but also the service. In order to gain competitive power, for example, brand loyalty can be one of the aspects. Government / legal actions. Ryanair should take care of the government and legal actions and moreover, can take the initiative over illegal aid to rivals. These may prevent the unnecessary loss. In summary, Ryanair, as the cost leader in budget airline industry should not only focus on the costs but also lots of other issues. Although it is developing rapidly and successfully, the future is unknown. The uncertain environment is changing all the time, thus Ryanair should always follow it and make the long-term plans in order to retain a sustainable competitive advantage. Grasp the opportunities, and it will has a bright future. Word:2123

Indian Removal Act

Indian Removal Analytical Essay In America: A Narrative History, Tindall and Shi spend little time talking about Jackson’s Indian policy and The Trail of Tears. Jackson’s Indian Policy paints Jackson as a man who hates the Indians and briefly talks about the Black Hawk War and a couple minor battles between the whites and Indians. It bluntly states that Indian Removal was simply â€Å"†¦moving all of [the Indians] into the plains west of the Mississippi River, to the Great American Desert†¦Ã¢â‚¬  (Tindall and Shi 304). In the section dedicated to The Trail of Tears, Tindall and Shi discuss the policy in Georgia towards the Indians, bringing up a few court cases such as Worcester v. Georgia and Cherokee Nation v. Georgia, neither of which did anything to help the Indians. After explaining the court cases, Tindall and Shi spend a segment talking about how the Indians gave up their lands east of the Mississippi in exchange for land west of the Mississippi, $5 million, and money for transportation. They do lightly address the â€Å"†¦grueling journey that killed many of the exiles† known as The Trail of Tears. Like most books though, America: A Narrative History uses a biased point of view and short segments about the subject to get its point across. Works Cited: Heidler, David, and Jeanne Heidler. Indian Removal. Ed. Lory Frenkel. New York: W. W. Norton & Company, 2007. Print. Tindall, George, and David Shi. America: A Narrative History. Ed. Jon Durbin. 8th ed. New York City: W. W. Norton & Company, 2010. Print. Indian Removal Act Indian Removal Analytical Essay In America: A Narrative History, Tindall and Shi spend little time talking about Jackson’s Indian policy and The Trail of Tears. Jackson’s Indian Policy paints Jackson as a man who hates the Indians and briefly talks about the Black Hawk War and a couple minor battles between the whites and Indians. It bluntly states that Indian Removal was simply â€Å"†¦moving all of [the Indians] into the plains west of the Mississippi River, to the Great American Desert†¦Ã¢â‚¬  (Tindall and Shi 304). In the section dedicated to The Trail of Tears, Tindall and Shi discuss the policy in Georgia towards the Indians, bringing up a few court cases such as Worcester v. Georgia and Cherokee Nation v. Georgia, neither of which did anything to help the Indians. After explaining the court cases, Tindall and Shi spend a segment talking about how the Indians gave up their lands east of the Mississippi in exchange for land west of the Mississippi, $5 million, and money for transportation. They do lightly address the â€Å"†¦grueling journey that killed many of the exiles† known as The Trail of Tears. Like most books though, America: A Narrative History uses a biased point of view and short segments about the subject to get its point across. Works Cited: Heidler, David, and Jeanne Heidler. Indian Removal. Ed. Lory Frenkel. New York: W. W. Norton & Company, 2007. Print. Tindall, George, and David Shi. America: A Narrative History. Ed. Jon Durbin. 8th ed. New York City: W. W. Norton & Company, 2010. Print. Indian Removal Act Indian Removal Analytical Essay In America: A Narrative History, Tindall and Shi spend little time talking about Jackson’s Indian policy and The Trail of Tears. Jackson’s Indian Policy paints Jackson as a man who hates the Indians and briefly talks about the Black Hawk War and a couple minor battles between the whites and Indians. It bluntly states that Indian Removal was simply â€Å"†¦moving all of [the Indians] into the plains west of the Mississippi River, to the Great American Desert†¦Ã¢â‚¬  (Tindall and Shi 304). In the section dedicated to The Trail of Tears, Tindall and Shi discuss the policy in Georgia towards the Indians, bringing up a few court cases such as Worcester v. Georgia and Cherokee Nation v. Georgia, neither of which did anything to help the Indians. After explaining the court cases, Tindall and Shi spend a segment talking about how the Indians gave up their lands east of the Mississippi in exchange for land west of the Mississippi, $5 million, and money for transportation. They do lightly address the â€Å"†¦grueling journey that killed many of the exiles† known as The Trail of Tears. Like most books though, America: A Narrative History uses a biased point of view and short segments about the subject to get its point across. Works Cited: Heidler, David, and Jeanne Heidler. Indian Removal. Ed. Lory Frenkel. New York: W. W. Norton & Company, 2007. Print. Tindall, George, and David Shi. America: A Narrative History. Ed. Jon Durbin. 8th ed. New York City: W. W. Norton & Company, 2010. Print. Indian Removal Act The Indian Removal Act The U. S got the Louisiana Territory in 1803. Then during his presidency, Andrew Jackson got Congress to pass the Indian Removal Act. This act stated that all Indians that wished to follow their own tradition must move to the Indian Territory where they would have more than 70,000 square miles of free land. When this act was passed, all Indians but the Cherokee signed the Treaty of Echota agreeing to move. Jackson thought it was necessary to take action against them to enforce the law.But the question is was the U. S justified in passing the Indian Removal Act forcing all Indians to move. I say no, the U. S was not justified in passing the act. The Indians have had a right to this land way before we did. Even though we are settled here, all this land originally the Indians’ and with this act, we are kicking them off their own land. John Marshall stated, â€Å"The Choctaw and Creek were treated horrendously when they moved to the Indian Territory.Their h orses were stolen and hundreds died for malnutrition. † (Document 2). The Choctaw and the Creek were treated really badly. They suffered a lot and some of them even died. Honestly, the Cherokee are being smart in not moving to the Indian Territory because they know that they will be treated the same way. The very little trust that the Cherokees had in us is now lost. Mr. Marshall also states, â€Å"In the case of Worchester vs. Georgia (1832), the U.S Supreme court ruled that the state of Georgia could not force the Cherokee off their land. † (Document 2). President Jackson is going against the law by supporting the Indian Removal Act. This does not show good presidency. He’s taking hasty decisions because of his bad past with the Indians. The Cherokees are not at fault. If they want to follow their traditions and still live in Georgia, fine. I don’t see why any American has an objection with the Indians staying there not bothering us and we not bothering them.They have a right to this land. Let them have the freedom. The Cherokee should be allowed to stay in Georgia. It’s their land and they had a right to it even before we did. But think about it. How would you feel if you were told that you had only two choices: one, if you wanted to stay in your current location, you have to give up all your traditions and two, you have to move somewhere else if you wanted to follow your traditions? Put yourself in the shoes of the Cherokee. What would you do?

The Negative Effect Of Pre Cogs And Pre Crime - 957 Words

With the movie, The Minority Report, Mill would be for the use of Pre-cogs and Pre-crime on the basis that the consequences of these outcomes have a positive effect for more people than a negative effect. Thereby, supporting his claim of the standards of utility. This is evident in how many lives were saved through the process of Pre-crime and the use of Pre-cogs. However, Kant would be against the use of Pre-cogs and Pre-crime and say it is immoral because it limits the role of individual moral agents and goes against the categorical imperative. Firstly, Mill would argue that Pre-crime and the use of Pre-cogs would be morally correct if the standards of the utility were used, because the outcomes of these practices have a more positive effect than a negative effect, such as saving many human lives. This is evident, when in the movie there is an advertisement that states that there hasn’t been a murder in Washington D.C in six years. Even though a small percentage of those potential murders might not have gone through with it, according to Mill, the lives of many far outweighs this. Not only that, but we would have to put into account the positive effects based upon the Hedonic Calculus. Based on Hedonic Calculus, we would have to wonder how many people would be affected by the use of Pre-cogs and Pre-crime, the intensity of those affected, how long the affect would last, and so on. If we use this method, we would have to account for the number of lives saved, added to theShow MoreRelated Forensic Psychology Essay3428 Words   |  14 Pageshis every need; the angry, threatening, autocratic boss or teacher who enjoys seeing the worker or student break into a cold sweat. Boredom is another source of hostility, according to Fromm. When life loses its meaning because we are only a cog in a wheel, our reaction to the senselessness and helplessness is anger. 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Gay Marriage Should Be Legal - 1159 Words

Americans want freedom and equality, that is the main desire of just about every citizen. Most of society will say they support equal rights for all citizens. But as soon as the topic of equal rights for homosexuals, people become uncomfortable and uneasy, not knowing which opinion is right and wrong and right. Surprisingly the majority of Americans voted for the Constitutional Amendment, which puts a ban on gay marriage. This amendment entitles to equal rights to the gay community, ending toleration of discrimination in jobs, rights protecting gays from hate crimes,rights allowing advancement in government. However, the concept of gay marriage is still not considered a right the American people should extend to homosexuals. II. The vast majority of opponents believe marriage should be between one woman and one man, meaning marriage should be between members of the opposite sex. Otherwise, the marriage would be called â€Å"untraditional†. I often think how silly this may seem to a homosexual, what if they wonder where this general unknown rule came from. Who defines marriage? Recently, many court systems say there are no evidence towards why homosexuals should not be allowed to marry. Assuming these courts realize the American principle of human rights stated before. One such case, Lawrence vs. Texas, determined all sodomy laws in the United States are unconstitutional and unenforceable when applied to non- commercial consenting adults in private. In other words, sodomyShow MoreRelatedGay Marriage Should Be Legal1205 Words   |  5 PagesHoward Sociology 1301-93431 Gay Marriage Getting married is something that most people do when they find love, which it is an important event in their life. 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