Hotel Profile and Marketing Plan

Hotel Profile and Marketing Plan Executive summary In this essay we concentrate on Starwood hotels, this is a world famous chain of hotels. We talk about the marketing strategies, hotel staff training of Starwood. The hospitality, leisure, travel and tourism sector continues to play an important role in the UK economy. A report published by People 1st in association with British Hospitality Industry in 2009 states that the hotel industry has enjoyed a sustained period of growth over the last 30 years and now accounts for nearly five percent of the UKs total economic output. They suggest that along with the rest of the economy, trading will be tough in the short term due to credit crunch but in the long term the sector is still predicted to grow and remain an important contributor to the UK economy. The sector employs in the region of two million people accounting for 1 in 14 UK jobs. The recession is forcing more employers to think about cutting costs. It is therefore more important than ever that employers have credible retention strategies to retain skilled staff and reduce unnecessary recruitment costs. The report explains how Starwood which is global hotels and resorts group, with a highly distinct brand, functions in the United States and Canada, in Europe, in Asia Pacific and in Africa by managing and franchising more than 395 hotels with a focus on nowadays demanding business explorer. This report briefly discusses the how marketing is done in Starwood hotel and the marketing strategies which they are using. It is entrusted to modify and innovation in all main areas together with its growth strategy, operations, franchising, sales and marketing, and technology, to function with utmost effectiveness in a extremely competitive industry Chapter 1 Introduction 1.1 Business Profile of Starwood Hotel Starwood Hotels Resorts is a worldwide chain of 400 hotels, with a total of 102,000 guest rooms, in many countries. Starwood Hotels Resorts, one of the worlds leading, full-service hotel brands, offers vibrant, modern and attractive hospitality service that is defined by its characteristic . The first Starwood Hotel was built in Minneapolis, Minnesota in 1909, and was named after the 17th century French explorer Pierre-Esprit Starwood. The hotel was purchased by Curt Carlson (1914-1999) in 1962, and is still owned by his Carlson Companies. Starwood competes with Hilton, Doubletree, and Marriott. The majority of Starwood Branded Hotels are located in the United States. The companys headquarters are located in Minneapolis, Minnesota, where the first Starwood Hotel was built. This building is also headquarters to the parent company, Carlson Companies. There are 200 Starwood Hotels in the United States. Starwood Blu, formerly Starwood SAS, is the brand name for hotels outside the United States, including those in Europe, Africa, and Asia. They are operated by Belgian hotel firm Rezidor Hotel Group under a master franchise contract with Carlson. Carlson and Scandinavian Airlines System (SAS), the Scandinavian Airline, were equity holders of the Rezidor Hotel Group, giving the company its name. Since SAS withdrawal from the collaboration, the name Starwood SAS remained until February 5, 2009, when it was replaced by Starwood Blu, which will be introduced gradually. Starwood Blu operates 158 hotels with 42 projects in development. Definition of Marketing The Chartered Institute of Marketing (1986) defines marketing as The management process responsible for identifying, anticipating and satisfying customer requirements profitably.American Marketing Association(1980) as the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. [1] The term developed from the original meaning which referred literally to going to market, as in shopping, or going to a market to buy or sell goods or services. According to Gronroos (1989) says long term customer relationships are considered as the cornerstone of marketing. 1.2 Starwood Marketing Orientation Marketing is an integrated communications-based process through which individuals and communities discover that existing and newly-identified needs and wants may be satisfied by the products and services of others. (Kotler and Armstrong, 2005) The Chartered Institute of Marketing define marketing as The management process responsible for identifying , anticipating and satisfying customer requirements profitably A business that has a marketing orientation sees the needs of customers and consumers as vital. As it develops and markets products to meet those demands, certain structural characteristics become apparent in the business. Business Function Activities Identifying customer/consumer needs and wants Marketing research Developing products to meet customer/consumer needs and wants Research and development Production Deciding on the value of the product to customers Pricing (sales and marketing department) Making the product available to customers at the right time and place Distribution Informing customers/consumers of the existence of the product and persuading them to buy it Promotion We should expect to see all the above activities well-established in a business that is marketing-orientated. Starwood first finds out what customers wants are by conducting a market research and by providing what the customers really need and satisfying them makes them customer oriented. Starwood always focuses on their service level to be 100% and they have developed a YES WE CAN program among their employees. This would directly attract customers and also make Starwood create a competitive advantage over its competitors. Moreover, the greater Starwood is customer orientated, the more it will be able to develop a competitive advantage based on innovation and market differentiation. Market orientation focuses on a business culture and activities that enhance business performance, producing superior value to customers, outstanding performance for the firm and aggregately for the economy (Oudan., 2007). Market Orientation Market Testing Market Research Market Intelligence 1.3 Marketing Intelligence Market intelligence, according to Cornish (1997), the process of acquiring and analyzing information in order to understand the market (both existing and potential customers); to determine the current and future needs and preferences, attitudes and behaviour of the market; and to assess changes in the business environment that may affect the size and nature of the market in the future. Starwood business always updates themselves on the economy, labour market conditions, legislative and regulatory development, social changes and technological advancement by doing an environmental scanning. They consider all these external environmental factors when it comes to taking decisions about packages, prices, and other management and marketing issues Starwood also searches for information from readily available public sources and customers while sometimes through the perfectly legal observation of competitors activities. 1.4 Market Testing A test market, in the field of business and marketing, is a geographic region or demographic group used to gauge the viability of a product or service in the mass market prior to a wide scale roll-out. Market testing is done to test multiple marketing scenarios and select the most promising for expansion. When Introducing a new product or service without first testing the market is risky. After the market research the new products /services must be tested before entering the market. Starwood one of the most recent market testing was Express yourself service which allows Guests to check-in online. Many new ideas and products are successful in Starwood because their creators recognized an unmet need in the market and confirmed the capability of that concept. When launching a new product or service, the company should first conduct a small scale launch or other customer research in a test market Chapter 2 Segmentation, Targeting Positioning The strategic marketing planning process flows from a mission and vision statement to the selection of target markets, and the formulation of specific marketing mix and positioning objective for each product or service the organization will offer. In its first phase, choosing the value, the strategist proceeds to segment the market, select the appropriate market target, and develop the offers value positioning. The formula segmentation, targeting, positioning (STP) is the essence of strategic marketing. (Kotler, 1997) (Figure3) 2.1 Market Segmentation Segmentation is essentially about identifying groups of buyers within a market who have needs which are distinctive in the way that they deviate from the average consumer. Some consumer may treat satisfaction of one particular need as a high priority, whereas to others this need may be regarded as being quite trivial. Consider the case of the new hotel market. Buyers no longer select a hotel solely on the basis of hotels market. Market Segmentation is the subdividing of a market into distinct and increasingly homogeneous subgroups of customers, where any subgroup can conceivably be selected as a target market to be met with a distinct marketing mix (Kotler 1994). It should precisely segment its markets on various factors and provide the customers what they want. Starwood had segmented its market by corporate (business travellers) and leisure seekers. In the near future by 2010 Starwood had announced to open a hotel in the city of Makkah. In an interview with Jean-Marc Busato, Area Vi ce President said This is an important milestone for us to be present in what is considered the holiest city in Islam. This is our sixth Kingdom project which we consider one of our major growth markets. He also added We have acquired a good understanding of the Saudi Arabian market and besides developing our first class Starwood brand, we also see a demand for efficient, value for money accommodation for the frequent traveller in the mid market segment, 2.2 Targeting Targeting is a process of prioritizing target segments based on the firms core competencies or capabilities, and other researched factors including segmented market size, growth potential of the segmented market, competitive dynamics, etc. This method is used to Find out the target customers in focus marketing and set up target products and services for them,. In this aspect Starwood should completely symbolize the features and specialties in the hotel. In Starwood they have targeted the customers in. Starwood provides food item s and more facilities to their respectable rooms and they give special discounts for regular customers. In addition to that all the customers can enjoy almost every other facility which is in five star standards. 2.3 Positioning Positioning means arranging a product to occupy clear, distinctive and desirable place relative to competing products in the minds of target consumers. Through using positioning successfully, brands will be able to position their product in the consumers mind. Four key elements for a successful positioning are Clarity, Consistency, Credibility and Competitiveness. In marketing, positioning has come to mean the process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization. It is the relative competitive comparison their product occupies in a given market as perceived by the target market. Chart 4: STP strategy, Hard capital (2003) 2.4 Satisfying customer needs and wants Customers are everything to a Hotel or any business for that matter. It can be out as a companys bread and butter. In the past, all was not well for Starwood hotels. As other businesses they also faced declining revenues and reputation. So to come out of this matter they implemented a market research to find out what they are doing wrong in the field. The research showed that customer wants and needs have changed over time but Starwood has stayed in the same place. A focus on franchisees and franchisee growth vs. customers and the hotel guest experience resulted in an undifferentiated, lacklustre brand and inconsistent service. Meeting the objective needs and wants of customers to drive sales is at the heart of most businesses. It is how they build business relationships, remain profitable, and how they expand into new territories. To improve customer experience and freedom of choice they implemented such schemes as Express Yourself, Gold Points Plussm and Sleep Number Bed program. The Express yourself program is the hotel industrys first pre-arrival, online check-in system. Guests book their reservation and can check-in online. Radisson Hotels Resorts is part of the gold points plus program from Carlson Hotels Worldwide that offers guests the freedom and flexibility to earn rewards more quickly than any other hotel program. Chapter 3 3.1 Marketing Mix The concept of the marketing mix was first given prominence by Borden in 1965. He described the marketing manager as a mixer of ingredients, one who is constantly engaged in fashioning creatively a mix of marketing procedures and policies in his efforts to produce a profitable enterprise Marketing mix is a Planned mix of the controllable elements of a products marketing plan commonly termed as 4Ps: product, price, place, and promotion. These elements are adjusted until a right combination is found that serves the needs of the products customers while generating optimum income. (Jain,S.C,1990). Traditionally the marketing mix consisted of just 4 Ps, but now it has been extended and is called extended marketing mix and consists of 7Ps. The new marketing mix is more customers oriented and enables the organization to meet its marketing objectives and to satisfy the requirements of customers. (Figure 4) Extended marketing mix, Array marketing development 3.1.1 Product Starwood is a world renowned chain of hotels providing excellent product under the image of hotel services. Starwood has an exceptional recognition in providing high quality service they constantly look at new ways of improving the service they provide. To improve the standards of service they provide, Starwood has introduced several new programs as mentioned in the start of the essay, such as Yes I Can! Training program and Express Yourself which allows guests to check-in online .By introducing these new strategies Starwood has already achieved favourable results. 3.1.2 Price In any organization the price must be high enough to cover costs and make a profit but low enough to attract customers .Since most of the Starwood hotels are five star rated hotels the price factor plays a major role. Due to the price customers can change their mind to go to another hotel. In this issue what Starwood has done is they have kept their prices at a normal rate which is comparatively high, at the same time Starwood came up with their new marketing strategy. Starwood promoted new holiday packages such as Friday is free day and family bed breakfast package with attractive prices. When annualizing Starwoods figures it is clear that this strategy has been successful. 3.1.3 Place Starwoods hotels always do research before picking a place for their new hotel; because of this they have become very successful. When we take Starwood as a whole it seems like they have selected the most ideal locations for their hotels. This is thanks to the research they do and it has paid off. 3.2 Extended marketing mix Traditionally the marketing mix consisted of just 4 Ps, with the extended marketing mix it enables the organization to meet its marketing objectives and to satisfy the requirements of customers. In addition to the traditional four Ps it is now customary to add some more Ps to the mix to give us Seven Ps. The additional Ps have been added because today marketing is far more customer oriented than ever before, and because the service sector of the economy has come to dominate economic activity in this country. These 3 extra Ps are particularly relevant to this new extended service mix. 3.2.1People People mean the staff working for Starwood. Employees of Starwood are like a backbone of the company, they have been highly trained and Starwood offers one the industrys best program phrased as YES I CAN 3.2.2 Process This Refers to the systems used to assist the organization in delivering the service. When the service becomes faster automatically the efficiency of the organization gets better. Starwood is world renowned for its excellent and fast process of service. Associated with customer service are a number of processes involved in making marketing effective in an organisation Process is the way how customers are handled from first to last point of contact. So this involves Starwood policies, program, payments, bookings, quality processes for handling customer complaints, processes for identifying customer needs and requirements, processes for handling order etc. Chapter 4 4.1 Marketing Environment Marketing as we know it today began in the 1970s with the birth of the marketing orientation. During the first stage of capitalism business had a production orientation Business was concerned with production, manufacturing, and efficiency issues. By the mid 1950s a second stage emerged, the sales orientation stage. A companys marketing environment consists of factors and forces outside marketing that affect marketing managements ability to develop and maintain successful relationships with its target customers (Kotler., 2005). The marketing environment surrounds and impacts upon the organization. There are three key perspectives on the marketing environment, namely the macro-environment, the micro-environment and the internal environment. Elements of Macro-environment, Organizational environment (1995) 4.2 Micro environment This environment influences the organization directly. It includes suppliers that deal directly or indirectly, consumers and customers, and other local stakeholders. Micro tends to suggest small, but this can be misleading. In this context, micro describes the relationship between firms and the driving forces that control this relationship. It is a more local relationship, and the firm may exercise a degree of influence. This environment influences the organization directly. As in the (figure1) It includes suppliers that deal directly or indirectly, consumers and customers, and other local stakeholders. Micro tends to suggest small, but this can be misleading. 4.3 Macro environment This includes all factors that can influence and organization, but that are out of their direct control. A company does not generally influence any laws. It is continuously changing, and the company needs to be flexible to adapt. There may be aggressive competition and rivalry in a market. Globalization means that there is always the threat of substitute products and new entrants. The wider environment is also ever changing, and the marketer needs to pay off for changes in culture, politics, economics and technology. 4.4 Internal environment An organizationsÂÂ  internal environment is composed of the elements within the organization, including current employees, management, and especially corporate culture, which defines employee behaviour. Although some elements affect the organization as a whole, others affect only the manager. A managers philosophical or leadership style directly impacts employees. Traditional managers give explicit instructions to employees, whileÂÂ  progressiveÂÂ  managers empower employees to make many of their own decisions. Changes in philosophy and/or leadership style are under the control of the manager. Conclusion As seen in the above report it is clearly shown how marketing is done in Starwood chain of hotels. As mentioned above in the report Starwood is a worldwide hotels network, in this report the author briefly discusses about the factors which affects the marketing process directly and indirectly. Then we talk about how marketing has changed over the years and the new marketing strategies in place in the new world. And we also talk about the segmentation process, marketing environment and its elements. Marketing is an important element which contributes very much for the growth of Starwood. Marketing creates a benchmark to Starwood among the other hotels in the industry. The hotel industry has fierce competition at present therefore continuous developments of good packages, attractive advertisements, good and efficient customer service will help Starwood to be ahead of others. In the meantime, continuous research and development should help Starwood to satisfy its customers and retain lo yalty as well.

The EasyJet Business Model and its Market Survival

The EasyJet Business Model and its Market Survival 1.0 – Title 2.0 – Introduction 3.0 – Research 3.1 – Aims 3.2 – Objectives 4.0 – Literature review 4.1 Airline Industry 4.1.1 Deregulation of the Airline Industry in the US and in Europe: 4.1.2 Persian Gulf War and Recession 4.1.3 World Trade Centre Disaster 4.2 – Budget Airline Industry 4.3 – History of Easy Jet 4.4 – Globalization and Technology 4.5 – Marketing – Alliance 4.6 – No Frills 4.6.1 – Inputs 4.6.2 – Product Design 4.6.3 – Process Design 4.7 – Competition 4.8 – Business Model 4.8.1 – Internet 4.8.2 – Customer Purchase Experience 4.8.3 – World Wide Web (WWW) Strategy 4.8.4 The Philosophy 4.9 – Future 4.9.1 – Low passenger comfort 4.9.2 – Questionable security standards 4.9.3 – Uncertain tragedy, consequences and expansion in the future 5.0 – Methodology 5.1 – Secondary data 5.2 – Choice of research method 5.3 – Methodology 6.0 – Conclusions 7.0 – Bibliography Easy Jet and the Airline Industry The subsequent part of the paper is organised as follows. Section 3 discusses the aims, objectives and selection process of the research. Section 4 discuses the relevant literature that has been reviewed in the preparation of this paper. It will describe the airline industry and EasyJet’s strategy and business model. Section 5 outlines the methods adopted and the spirit of the methodology underlying the analysis of the findings. Section 6 constitutes the conclusion that is drawn from the research of this paper. Section 7 is the bibliography and references used in the writing of this paper. This paper makes a case for establishing a large – scale business organisation to exploit a promising business opportunity in terms of providing education/career counselling for Indian students seeking professional advancement through overseas undergraduate/post graduate education. The choice of the above thesis has been determined primarily out of my own experiences as an undergraduate student in the United States and later as a post – graduate in the United Kingdom. The principal motivation for the paper however transcends personal considerations and owes much to the emergence of social forces released by globalisation in developing countries such as India. 1.1 Globalization and Overseas Education The Indian economy has been, for most of the period, following the attainment of Independence in the late forties, structured on a Mixed Economy model[1] that accorded economic primacy to the state. The spirit of central planning dictated the allocation of resources in what was essentially a closed and autarkic economy that considered international trade to be of little relevance. All this changed in the early nineties on account of the realisation that the centrist model of development was becoming increasingly irrelevant and incapable of providing the economic growth necessary to sustain a standard of living that matched those of other countries in the world. The collapse of the Soviet Union[2] had much to do with this new awareness since central planning in India had been particularly influenced by the Soviet model. In particular the Second Five Year Plan (1956 – 1961)[3] which placed heavy emphasis on state owned heavy industries and which played such a large part in shaping the Indian economy for nearly forty years was structured by the economist P.C. Mahalonobis who believed that the Soviet model contained the most promise to help India secure rapid economic growth. However, even after four decades of development based on central planning, India had not made much progress, except for achieving what came to be called the â€Å"Hindu rate of gro 3.1 – Aims The aims of the research are to identify the airline industry and the EasyJet Business model and how does it survive in the market. 3.2 – Objectives The objectives of the research is to analyze the case study and answer the proposed research question by analyzing the airline market, EasyJet’s business model, the future of the low cost carriers and the changing trends in the airline industry that could affect the business of these no frill airlines. 4.1 Airline Industry The beginning of the aviation industry was by Wright brothers who launched their first successful flight in Kitty Hawk, North Carolina. Airline was not used as an option in early years because of fear of travel but today it is used as a fastest mode of transportation. Since the 1980 RKP (Revenue Passenger Kilometers) was the way the growth of the airline industry is measured. This RKP is larger than the real world growth GDP. As we refer to the case in Exhibit 1 we can see the growth of the airline industry has faced many ups and downs since the 1980’s. This changing trend in the airline industry has been because of a variety of reasons such as uncontrollable environmental factors, terrorism, globalization, technology, etc. The airline companies in the earlier years worked on a very huge profit or loss margin. If the number of passengers increases it brings in enormous profit to the airline and in the opposite case can bring huge losses. The airline industry also works on an extremely high fixed cost and therefore as the demand in the airline decreases the company faces huge losses. Also it should be taken into consideration that it takes 1 – 2 years to build a plane and therefore increasing capacity immediately because of higher dem and can be taxing for the company. The airline industry came into much use only during the 90’s because the cost of production went down and therefore was more affordable by customers although yet expensive. Then there was no looking back for the airline industry as it was a multi billion market and therefore competition increased drastically. Because of globalisation and other factors the demand for business and tourist travel increased at a more than double rate. The increase standard of living and changing trend of visiting places around the world also increased this need. Increase in the travel was also caused because of competition of other private airlines besides the government airlines forcing competition and there after reducing prices even further. The uncontrollable factors effect the airline industry directly or in directly. Some of the factors because of which the airline industry suffered are: 4.1.1 Deregulation of the Airline Industry in the US and in Europe: In many countries in the earlier years the government would control certain strategic sectors and airline industry was one of them. The airline industry was deregulated in the 1978 in the USA and about 15 years later in Europe. This deregulation bought privatization and therefore there was tremendous increase in competition. In no time it changed from an oligopolistic industry to a perfect competition. Europe was earlier run by the government whereby they controlled the entire system like where the airlines would fly, changes in price and the time they would fly. But after the European economy deregulated the airline industry competition increased even in Europe. The deregulation of the EU in 1992 and very minimal trade barriers as per the WTO has increased travel worldwide. This has also given the different airlines an opportunity to expand their network and apply better marketing to survive in this perfect competition. One of the things that have changed the way airline industry is operating in 2000 is the introduction of the â€Å"no frills low cost† carriers. After deregulation as competition increased more than 75% of the companies left the market as they could not cope up with the high market share. When the deregulation took place in the USA a new airline called SouthWest airline was introduced that cut its prices by 70% therefore being ahead of the competition and capturing more and more market share. In Europe following the SouthWest model Ryanair and EasyJet came into existence. Even besides deregulation the government yet controlled the time slots, landing rights and other privileges awarded by them. Government was also responsible in supporting the airline industry by building new infrastructure. Therefore even though deregulation took place there was a big political and governmental influence on the industry. 4.1.2 Persian Gulf War and Recession The airline industry even though deregulated had suffered losses until it recovered in the 1988, but it was followed by recession in 1989 and the gulf war in 1990 / 1991. The gulf war and the recession which was elongated for four long years hit the industry with a loss of US $22 million. Besides the industry being affected badly there was also decrease in the amount of customers flying as they were scared. Also the high oil prices during the Gulf War increased the fixed cost of the airline which in turn increased prices drastically. Airlines became profitable only after 1995 as many cost reductions had taken place to satisfy customer needs. 4.1.3 World Trade Centre Disaster As we can see in Exhibit II of the case study we can see that the airline industry was profitable from 1995 up till 2000 and then faced a deep dip in profits when the September 11th disaster took place. After effects of the September 11th made a few airline companies file bankruptcy as they suffered huge looses because of the high cost of production. The September 11th disaster increased security as they hired more personnel and security applications, increase in the waiting time for passengers and also made air transport very less attractive. Therefore airlines had to develop a cycle of trust for their customers as they were adopting alternative methods of conducting business like video conferencing and shared corporate jet. The substitution of flying increased business in video conferencing by 30% and also it lost 10% of its business and first class customers. SARS and Iraq war decreased earnings even further. All these above external factors directly or in directly affected the ai rline industry that changed the way business was operated in the 21st century. The introduction of the budget airline industry is explained below: 4.2 – Budget Airline Industry A Budget Airline is a low cost airline which does not issue tickets, no connections, quick checking, only one class of tickets and sell directly to the customer. Budget airline industry was introduced in 1971 by Rollin King and Herb Kelleher named SouthWest airline which followed the ticket less and no frill strategy. Many years later another airline was introduced following the SouthWest model called RyanAir. It also focused on no frill model and focused on functionality. Just a little later Easy Jet was introduced which was a no frill, and web based booking airline reducing cost drastically. Airlines like British Airways, Air France, Delta etc., earlier would charge a full price if a customer booked ticket in advance and then sold it for a cheaper price as the date comes closer. But airlines like Easy Jet applied a completely different pricing model that is cheaper tickets sold in advance and price increases as the date gets closer. Therefore this pricing model was later applied by many carriers for better profits. 4.3 – History of Easy Jet The easy jet was introduced by the son of the Greek shipping magnate, Stelios Haji-Ioannou who based it on the SouthWest Model that was introduced in the USA in 1995. The easy jet concept is based their pricing model that reduces the air fare for passengers in short haul flights so that they can fly frequently. The traditional model was that the airlines were sceptical with lowering prices as it would affect the revenue but easy jet has completely proven them wrong as it is increasing its market share at a fast pace since its existence. Easy jet today has more than 75 routes in 36 European airports. The seats are sole by telephone reservation or online eliminating the middle men that are the travel agents. After one year of its launch it designed a website that became a very important part of the business. Easy jet is a member of the UK airline group that consist of seven other companies and easy jet is responsible to run the traffic control. Easy jet has invested millions of dollars to develop safe and reliable air traffic to increase and maintain capacity on air and ground for long term future growth. In 2001 easy jet did a fantastic job by selling 75% of its seats online and therefore has been regarded as Europe’s second largest airline in UK. This arose the need for expansion and therefore it acquired British Airway’s subsidy Go. This acquisition made it the biggest low cost travel company in the world even ahead of its rival Ryan air. The airline also signed a deal in 2002 to purchase 120 Airbus to achieve its goal for growth. EasyJet also followed the model of single fleet aircraft which makes it easier for maintenance, operating cost and training. But after its acquisition with Go the company faced a lot of additional administrative cost making it difficult for them to lower the prices. 4.4 – Globalization and Technology According to Cogburn (www.unesco.org) â€Å"globalization is about the monumental structural changes occurring in the process of production and distribution in the global economy†. According to him â€Å"global companies can break apart business functions and spread them across the globe†. As a result of these processes â€Å"developing countries are facing tidal wave of changes, opportunity and challenges†. Globalization has made the world a smaller place to live. It has also increased competition worldwide and therefore customers want the best quality at a cheaper rate. Because of globalization and customer demand the airline industry has also changed the way it operates with â€Å"no frills† strategy. â€Å"The internet will change how people live, play and learn. The industrial revolution brought together people with machines in factories, and the internet revolution will bring together people with knowledge and information in virtual companiesit will promote globalisation at an incredible pace. But instead of happening over 100 years like the industrial revolution, it will happen over seven years†. [Micklethwait John and Wooldridge Adrian (2000), p 36] Companies also adopt to different global strategies like mergers and acquisitions instead of forming a completely new company. This helps the company to increase its customer base but it is also very important for the two companies to integrate themselves so that the core business and strategy is not destroyed. As in the case of EasyJet, it only operated one kind of aircraft for lower overhead and maintenance cost. But when it acquired GO it had different kinds of aircrafts that therefore it was very difficult to keep the price lower. Therefore it is important to follow different global strategies but extensive research needs to be done by forecasting the after affects. 4.5 – Marketing – Alliance The airline industry has developed from its nascent days when the Wright brothers invented the first airplane. Today it is a large and complex industry spanning the entire globe. Major considerations in the industry today are the global capacity surplus and yield management to boost profits and achieve break even points. The paper suggests that European airline industry follows four major business models, rather the business is divided into four categories of players – 1) National Flag Carriers, 2) No Frills Airlines, 3) Regional / Niche players and 4) Charter airlines The National Flag Carriers are the major world airlines that cover a wide range of destinations and distances from long haul intercontinental flights to short distances. Distinct features of the major carriers are high service standards, common quality, frequent flyer programs and code-sharing. During the 80’s the major airlines of the world followed a â€Å"hub and spoke† formula to expand services – whereby they would operate from a single airport as its hub and fly to multiple destinations. British Airways was the 1st to develop the London Heathrow airport as its hub. The benefits of the hub and spoke model can be seen from the significant tie-ups and partnerships major airlines have formed. This has given the flyers a large selection of flights and connections to virtually every corner of the world. It has also resulted in better yield managements so that airlines can operate higher load factors. The paper states that airlines currently need 70% load factor for their Jumbo aircraft flying long distances and new aircraft to be launched will reduce that to 58% making airlines more profitable. A study done on the revenue generated by the major world airlines indicate a large portion coming from business travellers. After the global economic downturn in 2001, the airlines have seen double digit drop in business travel which has resulted in significant loss of revenue and profitability. The shift has been primarily due to the availability of cheaper alternatives and cost cuts in industries across the globe. As a result the market capitalization of the national carriers has fallen between 36% and 56% over a span of 2 years from 2001 to 2003. 4.6 – No Frills The No frills model is different from the traditional method of operation. The no frill airlines work on a minimum standard of service, low prices and short flights. The key to their core business is the low cost pricing strategy. Pricing is mainly controlled in the three areas that is: 4.6.1 – Inputs Low cost in inputs is achieved by low cost of labour, similar airplanes for lower maintenance and operation, reduction in airport fees as it would not fly at the big airports, lower wages and better utilization of staff for example two shifts instead for three, and usually take older flights that have a lower investment. 4.6.2 – Product Design The product design is point to point arrangement with use of secondary airports. This saves cost and helps improve on time performance as the secondary airports are cheaper and less crowded as compared to the busy ones. Point to point arrangements also reduces connection passengers. All seats in a no frill airline are coach and has lesser space. They also do not have any lounges, catering and no bag transfers between flights. This helps them to save cost and improve their performance. 4.6.3 – Process Design The process design offers simplified boarding, disembarking and aircraft service. This helps the airline to save turn around time and therefore can make multiple trips. There are no agents and booking is usually done over the internet which reduces the sales cost and therefore can provide the customer with additional discounts. Therefore as we can see that the inputs, product design and process design reduces the cost by 59% as show in exhibit VI. The table divided the three by reasons of cost reduction by different percentage and it can be seen that each contribute to lower cost for the company drastically. 4.7 – Competition As we know that the no frills strategy has changed the way business is operating in the airline industry. Therefore many major players are fighting to be profitable. Every player is changing its strategy and experimenting in the new market. Lufthansa has reduced capacity and increased its pricing by 4.5%. This is a new strategy adopted by them as they are reducing the amount of aircraft that is operating. They are also cutting wages for workers as well as the remuneration. However other airlines like BA and KLM started new subsidy to compete with the no frill carriers like EasyJet and Ryanair. Both BA and KLM required high investment when their core business was suffering and both of them sold of their operations finally to concentrate on their core business and strategies. Lufthansa who were reluctant to start their own low cost carrier finally invested into Eurowings. They also started a number of flights to Germany called the Germanwings. It was noticed that these major players were investing in many low cost routes by increasing their capacity to capture more market share. They also wanted to keep prices lower to take away the market share from other modes of transportation. British Airways and Lufthansa worked on a strategy that provided lower cost than any of its other competitors and these tickets purchased did not need to be booked in advance and was not a restricted ticket. They followed this strategy as it would have been very useful to the customer and in turn would be profitable to them. 4.8 – Business Model Easy Jet’s business model is related to its pricing. It has a built in advantage as it reduces the overhead and administrative cost as it uses an eccentric approach. Easy jet makes every effort to lower all unnecessary costs as they do not deal with travel agents. Customer have to order their ticket either online or over the telephone where additional discounts are given to satisfy customers. The easy jet success is linked to the internet model used by the company to sell tickets. This is a very cost effective and reliable model as globalization and technology comes into existence. 4.8.1 – Internet Easy jet’s ticket sales are mainly through the internet. Almost 75% of its sales is through the online website. Earlier customers were a little sceptical to use credit cards and make payment online but in today’s high tech world it has boosted the sales of the company drastically. The customer places the order over the internet which gives them a wide variety of choices and dates and fares available on each flight. The fares offered by Easy jet are lower than the competition and therefore preferred by the customer. Usually majority of the airlines work on a return trip basis, but Easy jet follows a one way strategy giving customers the choice of flying one way, round trip or multi leg trip giving them the best and cheapest options available as per date and time that is preferred by the customer. Flights that are booked through the web are priced much lower than the telephone giving the customer as advantage by the airline reducing its over head cost. 4.8.2 – Customer Purchase Experience The website of the company is designed as a process that allows the passenger to exit at any time if he changes his mind. The website does not need the passenger to insert details every time he or she needs to view the time and date for a particular flight. The website also has a login system whereby it stores the name, address and all other related personal details so that the customer does not have to take the trouble to re-enter information every time he or she wants to purchase a ticket. Therefore it registers user names and password so that the entire process if fast and not time consuming. As we know a lot of airline companies as you to fill personal details before they give you the price, date, and time of a particular flight. This can get the customer really frustrated as sometimes they only want to check the price to compare it to what the other airlines offer. This ease of use facilities of the website offered to the customer and the low prices available as compared to any other competitor makes it a memorable experience for the customer who wants to return back to easy jet at any other time he or she wants to make a purchase. This website and pricing model has developed a positive brand image for the company by which it retains customer loyalty and increases its customer base. 4.8.3 – World Wide Web (WWW) Strategy The web strategy applied by easy jet has been so successful that more than 75% of their sales are through the internet. Therefore the company is trying to phase out of the telephone reservation to reduce cost even further and will be one of the only airline that would sell airline tickets only through the internet. Their marketing strategy to phase out of this telephone reservations has started by not listing its telephone number on any marketing and advertising material but just noting its website for further business. Their main reason to phase out of this is because this web approach has been very successful so far and therefore they are confident that it will do well in the future as technology advances and the use of computer is increased and known to all. 4.8.4 The Philosophy Easy jet has been constantly doing new things to develop and increase business. it follows the differentiation and first in the market strategy to build its customer base. It has completely changed the operation of the airline industry as many people are aware and buy from easy jet because of the low price of the ticket as well as easy availability for one way, multi leg and round trip tickets. Besides cost cutting and efficiency provided they believe in satisfying their customers a 100% as the word of mouth strategy has been proved successful in any business. Therefore these low cost methods of advertising and marketing have made it possible for them to sell tickets at a lower cost compared to all other airlines available in the market. The business model used by easy jet has allowed it to achieve growth in the mature airline industry by applying differentiation strategy in this highly competitive world. It has put a positive perception in the mind of the customer and operating very efficiently and economically as it depends more on the functionality of the airline rather than the frills offered to the customers. The strategy used by easy jet is bold and modern and can be risky for them as they decided to make sales only through the internet. The company applies sound principles while exploring the market by doing extensive research and therefore is ready to take a few risks as it believes that changes in the company is required for future profits and growth. 4.9 – Future The future of the no frills low cost carrier’s looks bright as more and more customers are wanting to spend less on travel as they have many options available. As we know that no business model today is perfect so therefore there are a few flaws to this model also as the low comfort of passengers to travel in an aircraft with food and enough leg space, security provided by these aircrafts is questionable and also the uncertainties and external factors of the future can effect the airline industry as it has done over the past. 4.9.1 – Low passenger comfort The model applied by low cost carriers is very simple as it follows a no frill strategy. But it is questionable that this model may be too simple for travellers who want to keep their status and also business people whose travelling expense is paid by the company expense. Therefore they would not mind paying a premium price for their comfort and status. Also majority of these low cost carriers may cancel or reschedule a flight without prior notice and a business traveller going for some important work would not be able to afford missing and important meeting or order. Also it has to be taken into consideration that low cost carriers like EasyJet fly to secondary airports as they cannot afford the busy airports. Therefore this may not be acceptable to everyone as the secondary airport may be a little far away from the city and therefore other modes of transportation will need to be taken for them to reach their destination. Low cost carriers also work on the policy of no cancellation or advanced booking cheaper price but this may not be useful in times of emergency when the customer would end up paying the same price for a normal fare ticket by a major airline and a low cost airline. Therefore the future will determine the changing trend in the airline industr

Blessing and Vultures Essay -- English Literature

Blessing and Vultures In the poems ‘Blessing’ and ‘Vultures’, the poets both use vivid descriptive language to create pictures and moods. In ‘Blessing’, the poet begins the second stanza with the word ‘imagine’. This word involves the reader and tells them to create a mental picture of the scene. He uses lots of onomatopoeia in this stanza. Words like ‘drip’ and ‘splash’ create an image of a small amount of water falling into a tin mug. This also creates a mood of thirst and drought. The stanza is finished with the line â€Å"the voice of a kindly god.† This personifies the water and makes it seem heavenly. The third stanza creates a sense of rushing, in the same way that water would rush out of the burst pipe. This mood is created by using fast sounding words, such as ‘rush’, ‘bursts’ and ‘crashes’. These words are also onomatopoeic because they sound like the pipe bursting, the water rushing and crashing to the ground. It uses the word ‘silver’ metaphorically to describe the look of the water and also how precious it is. Another metaphor is â€Å"a roar of tongues†. Th...

Performance Management Essay -- Business and Management Studies

Performance Management The performance management process provides an opportunity for the employees and managers to discuss goals and develop plans for achieving those goals. Therefore, communication involve between managers and employees that they have to identify job roles and functions related to the company objectives. They get together to devise some performance appraisals to enhance the company overall performance. The performance manager responsible for supervising workforce and the group educates and develops employees’ potential in order to improve workforce performance. Moreover, rewards is directly Employees performance. Essential Managing Performance to the Group 1 Explain how managing performance is a critical element in the success of a business. Employees need to understand their roles clearly An effective Performance Management system is based on these concepts: * Employees need to understand their roles clearly * Performance may be managed * There is a direct relationship between performance and rewards * Employee involvement is critical to performance development * Performance expectations must be set in advance and there must be agreement * Performance management requires on-going coaching, feedback and planning * Performance management can be a positive experience * Facilitate a process to establish clear role definitions and accountabilities. * Create a custom Performance Management program or improve your existing program. * Establish the objectives of your Performance Appraisal and Performance Management program. * Determine your performance criteria and integrate these criteria with your compensation systems. * Create your evaluation format. * Develop policies and procedures. * Conduct training sessions for your managers and supervisors. * Assist with the roll-out and communication of the program to your total employee group. How managing performance for a success of a business To begin the process, you and the employee will collaborate on the development of performance standards. You will develop a performance plan that directs the employee's efforts toward achieving specific results, to support organizational growth as well as the employee's professional growth. Discuss goals and objectives throughout the year, providing a framewo... ...n you and the employee * Help the employee attain performance objectives * Increase employee motivation and commitment * Maintain and increase the employee's self-esteem * Provide support Link of appraisal and review Performance Appraisal The campus carries out its mission through the individual and collective contributions of its employees. To do their best, staff members need to know that those contributions will be recognized and acknowledged. Overseeing performance and providing feedback is not an isolated event, but rather an ongoing process that takes place throughout the year. The performance appraisal is part of that process, and provides an excellent opportunity for you to communicate with the employee about past performance, evaluate the employee's job satisfaction, and make plans for the employee's future performance. Remember that the performance appraisal summarizes the employee's contributions over the entire appraisal period (usually one year). It is not a step in the disciplinary process. It may occur as often as you believe is necessary to acknowledge the employee for accomplishments and to plan together for improved performance.

How I (Almost) Saved the Earth Essay

There are a lot of factors when considering building a â€Å"green† home. In Adams’ article â€Å"How I Almost Saved the Earth,† he states that the greenest house any one could ever build is a house that is never built. This is true, but to most people this will not be a reasonable way to spend their lives. Therefore, if one wanted to build a house with the least environmental impact to the planet, plenty of planning and research will have to take place in order to achieve this type of house. Aspects Adams’ mentions that should be focused on is what type of climate the house is being built in, finding knowledgeable architects and contractors of green building solutions and local building codes, researching green products, and how much extra money can be put into these green solutions. These main aspects in planning a green home will have the best outcome. Determining what climate that the house is being built in is most important, and mainly effect how any house will built. Northern climate houses focus on maintaining heat whereas southern climate houses focus on keeping the heat out. With this in mind an eco-friendly furnace would not be necessary in southern climates. Another aspect determined by climate is the windows. As Adams put it, â€Å"windows bleed heat,† the less windows the better for maintaining temperature. As for southern climates, having many or big windows on the east and/or west side of the house is not a cost effective way of planning a build. Attic fans can also be determined depending on climate. Attic fans draw in outside air to cool the attic in southern climates, whereas as in northern climates drawing in air is not a feasible way of maintaining heat. Another way of regulating temperature is the material used for the walls inside of the house. Stonework is most efficient, along with a solid foundation.  Roofs are a main aspect that needs to be considered with the climate. The most efficient means of a roof in the souther n climate would be a white roof because white is the color that produces the most heat reflection from the sun. Adams mentions a garden roof, which can be a great way to regulate temperature inside the house, but considering the maintenance and the actual cost of this feature is absurd. The way to put all these aspects together is finding knowledgeable help from contractors and architects. It could take some time to find the right people, but will help greatly with experienced knowledge. They will know the current local building codes, knowing which materials that can be used and how they should be used. They will also know whether or not if code requires a radiant barrier. Either way, it should be at the top of the list to be installed. One option Adams mentions for the home is a photovoltaic system. It can be a great way of diminishing the electric bill, in theory, but times have not yet caught up with the technology. Plus, solar panels can be very expensive. Once electric companies can install homes with appropriate meters and the price of home solar photovoltaic systems drop, this option w ill be a great addition to every home. All of these aspects will be factored into my plans for a house of my own, mainly due to the reason I’d like to keep my home at a constant cool temperature. Considering my house would be in a southern climate, most aspects I mentioned would be placed in my plans. My house would be compiled mostly of stone for the walls with a think foundation. In my opinion, I like the way stone houses look. I would keep the number of windows to a minimum. Let’s say if I’d like to sleep during the day, it’ll at least be dark and cool. As for the roof, I think ill skip on the white roof and go with a natural green colored aluminum, or copper roof. These metals do not retain a lot heat and will typically last longer than shingled roof. The attic fan and radiant barrier will definitely be installed to help with keep the attic cool. For the rest of the property, landscaping with be structured with materials and plants that require the least maintenance and watering. Sorry, no white-pebbled lawn for me, I’ll stick to my blue grass. Another feature Adams placed in his house was a system that flows warm water through the entire floor. I can’t see this as being much of a green option. It takes energy to constantly warm the water. I think this as more of a comfort feature. If your floor is cold put some socks on, or  buy a rug. I can’t say my house would be entirely green, but I’ll do my best with what I’m able work with. Most of these aspects are, more or less, common-sense but should not be ignored in the planning process. Taking everything into account, it all comes down to how much of the budget can be dedicated to green solutions. Adams states it perfectly, â€Å"Realistically, you’ll need to find a middle ground between green design and aesthetics.† If money is no limit and curd appeal is not a factor then someone could have the greenest possibly house, but most people have financial limits and standards on how their house will look. Every part of the property can b e taken into account to how green it can be; the lawn, walls, windows, roof, and foundation can be considered for green efficiency.

Descriptive Example Essay

While working in a fine dining restaurant, I got to sample some of the best foods I’ve ever tasted in my life. Working in a restaurant of any kind is hard work from start to finish. I used to say, â€Å"If I’ve walked one step today, I’ve walked a thousand.† My feet would feel like they were going fall off. Heavy plates, customer satisfaction and perfection of plate presentation were all stresses that a server would have to deal with in a night, just to name a few. I have to say though that one of the things that made it all worthwhile was a meal made especially for you by the Chef. It didn’t matter how tired he was after his night, our Chef showed his appreciation to us by feeding us something off menu, something creative. He would come out of that kitchen just as proud as a child at what he created, no matter what it was. He never made anything less than perfect. I will never forget the kitchen with something that was so heavenly, so decadent that the memory of it is engraved in my memory forever. The aroma hit us before we ever saw it, intoxicating. I assumed that it smelled so beautiful because I was famished. Then we saw it, simultaneous gasps came from all of the servers. He called it Boursin Stuffed Filet, short name that was not short on character. This was not just any filet mignon, this was art. A 12 ounce grilled filet perfectly juicy, stuffed with Boursin Cheese, wrapped in applewood smoked bacon. Resting atop creamed potatoes and topped with a demi glace and grilled asparagus. Sounds simple? Looks can be deceiving. The moment I cut into mine it was like an out of body experience. The filet was 12 ounces of the finest cut of beef tenderloin available anywhere. It is the opinion of any great Chef that a filet be prepared rare, as was this one; perfectly blue-red in the core and brazed at its perimeter. When you cut into it the Boursin, a soft cheese similar to cream cheese with a light hint of garlic, oozed out to mingle with the creamed potatoes. With every bite you had the smokiness of the applewood smoked bacon with a hint of creamy garlic. The demi glace and asparagus rounded everything out with an elegant richness which cannot be described but only experienced. I took my time with every decadent bite, knowing that our Chef truly did love food.  How else could someone create magic with simple ingredients found in every grocery in the city. That experience still haunts me to this day. I don’t believe anything can live up to it. That Boursin Stuffed Filet will always be an apparition o f what food can be.

Accounting Career

Accounting Career Essay Kawanza Carey Everest Online University Strategies for Success 221 Accounting Career Essay Most people think accounting is just crunching numbers all day; everyone uses some form of accounting. There is much more to accounting than just crunching numbers. There are many types of accountants, covering a wide range of the business world, becoming an accountant opens a wide range of career opportunities. I want to become an accountant because it’s something that I’m familiar with since I prepare tax returns. Math has always been my favorite subject I enjoy working with numbers. Accountants help to ensure that firms run efficiently, taxes are paid properly and on time and public records are kept accurately. They analyze financial information for all different types of companies, individual clients, and Federal, State, and local governments. Beyond doing the basic tasks; providing information to clients by preparing , analyzing, and verifying financial documents; some accountants offer budget analysis, financial and investment planning, information technology consulting, and limited legal services. There are four major fields of accounting and auditing: public accounting, management accounting, government accounting, and internal auditing. Public accountants perform a broad range of accounting, auditing, tax, and consulting activities for their clients. Some public accountants decide to prepare tax returns while others offer advice in areas such as compensation. Public accountants; many who are Certified Public Accountants (CPAs), generally have their own businesses or work for public accounting firms. Management accountants are responsible for budgeting, performance evaluation, cost management, and asset management. They analyze and interpret the financial information that corporate executives need to make sound decisions. Government accountants and auditors work in the public sector, maintaining and examining the records of the government agencies and auditing private businesses and individuals whose activities are subject to government regulations or taxation. Those employed y the Federal Government may work as Internal Revenue Service agents or in financial management, financial institution examination, or budget analysis and administration. Internal auditors verify the effectiveness of their organization’s internal controls and check for mismanagement, waste, or fraud. They examine and evaluate their firms’ financial and information systems, management procedures, and internal controls to ensure that records are accurate and controls are adequate. Most accountants work in an office setting while other may be able to do part of their work at home. They work a 40-hour week job, but some may work longer hours if self-employed and have quite a few clients. During the tax season tax specialist often work longer hours. Accounting, bookkeeping, and auditing clerk are required to have a high school degree at minimum. Having an associate degree in business or accounting is required for some positions. Accountants and auditors need at least a bachelor’s degree in accounting or a related field. Some employers prefer applicants with a master’s degree in accounting or business administration. An accounting clerk should be very comfortable with working with numbers, enjoy routine because you’re going to be doing the same thing daily. Other personality characteristics to be a successful accounting clerk are computer literate, great communication skills, and ethical. You have to be professional at all time because there may be a lot of irate clients upset about getting audited. If math is your favorite subject and you get along with everybody then being an accountant is a great career for you. Each year, numerous jobs will become available, as clerks transfer to other occupations or leave the labor force. There would be many opportunities for temporary and part-time work. Clerks who can carry out a wider range of accounting activities will be in greater demand than specialized clerks. An example is the demand for full-charge bookkeeper is expected to increase, because they can perform a wider variety of financial transactions. Certified Bookkeepers (CBs) and those with several years of accounting or bookkeeping experience who have demonstrates that they can handle a range of tasks will have the best job prospects. Accountants will always be in demand so I hope to be successful when I complete my degree. (n. d. ) References General Accountant Certified General Accountant Board †¦ (n. d. ). Retrieved from http://certifiedgeneralaccountant. org/ Accountants and Auditors. (n. d. ). Retrieved from http://www. bls. gov/oco/ocos001. htm Bookkeeping, Accounting, and Auditing Clerks. (n. d. ). Retrieved from http://www. bls. gov/oco/ocos144. htm