Strategic Analysis and Evaluation of Ryan Air Essay Example

Strategic Analysis and Evaluation of Ryan Air Essay Comprehensive strategic analysis and evaluation of this business enterprise which answers the following questions 1. In-depth environmental analysis of the European Airline industry and discuss the implications for the budget sector and especially for Ryanair. 2. An integrated understanding of the functioning of a company – its human and technical operations, leadership, customer relationships and financial structure. 3. Implications of the internal functioning to create viable strategic positioning and discuss any changes to Ryanair’s approach to ensure an improved sustainability 4. Evaluate the strategic leadership style of Michael O’Leary Chloe Butler BUT02048210 BSc Multimedia Technology Business Development V Assignment 2 John Denholm Table of Contents i. Title Page ii. Table of Contents I. Introduction II. Current strategic position II. 1 II. 2 II. 3 III. Functioning III. 1 III. 2 III. 3 III. 4 III. 5 III. 6 SWOT Analysis Human and Technical Operations Customer Relationships Financial Structure Leadership Implications on strategic positioning Market Segmentation Prescriptive, Emergent or something unique Competitive Advantages IV. Environmental analysis V. Recommendations V. 1 VI. Conclusion VII. References VIII. Bibliography IX. Appendices IX. 1 IX. 2 Appendix A – PEST Analysis, Haberberg and Rieple (2001) Appendix B – Selected responses to survey on no-frills airlines – Changes to ensure sustainability Haberberg and Rieple (2001) IX. 3 Appendix C – Excerpt concerning Ryanair’s dispute with the EU Commission IX. 4 Appendix D – Financial Information I. Introduction Ryanair is an Irish airline competing in the fairly recent development of the European budget airline industry. We will write a custom essay sample on Strategic Analysis and Evaluation of Ryan Air specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Strategic Analysis and Evaluation of Ryan Air specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Strategic Analysis and Evaluation of Ryan Air specifically for you FOR ONLY $16.38 $13.9/page Hire Writer They are one of the key players within the market, and perhaps the most profitable. This report undertakes a detailed study of Ryanair. It looks at Ryanair’s current strategy and the management of that strategy. It identifies how the business’ operations and functions impacts on the carrier’s customer relations and leaderships with regard to their overall strategy. It also gives a brief evaluation of Ryanair’s financial structure as well as an environmental analysis of the European airline industry and how this affects Ryanair. The report is mainly a case study analysis based on Eleanor O’Higgins’ review of Ryanair conducted in 2004. However, other secondary research has been analysed and used to support the arguments put forward in this document. II. Current strategic position To evaluate any organisations strategic position certain factors have to be assessed. These include those below and also the environmental analysis which follows later in the report. II. 1 Market Segmentation Ryanair lay claim to their market segment by stating they were ‘Europe’s first no frills airline’, www. yanair. com. Ryanair have made strategic decisions based on increasing their competitive edge, the main one becoming involved in attracting customers at both ends of their routes. Haberberg and Rieple (2001), support this by showing that Ryanair’s key source of revenue from as far back as a decade ago has been in enticing passengers from France, Italy and Scandinavia. This has had the a dvantage of increasing their market share as well as the added bonus of creating a well recognised brand name across Europe. II. 2 Prescriptive, Emergent or something unique? ‘A prescriptive corporate strategy is one where the objective has been defined in advance and the main elements have been developed before the strategy commences†¦. an emergent corporate strategy is one whose final objective is unclear and whose elements are developed during the course of its life, as the strategy proceeds’. Lynch (2000) As is shown above by Lynch (2000) the two recognised trategy models are extremely different, however these are the two dominant strategy approaches as stated by Dennis Foster in his lecture on Managing Strategic Change (2006). It is safe to recognise straight away that Ryanair does not sit uniformly with either strategy. However certain aspects or functions could certainly adhere to one or the other as these are sections that make up the carrier as a whole and for an organisation of Ryanair’s size different parts would have different aims and objectives underneath a main umbre lla strategy for the organisation. For example any planning undertaken by Ryanair for new routes or planes would follow the prescriptive model as the objective would have been defined beforehand and elements such as finance will have had to have been agreed before any purchasing goes ahead. On the other hand emergent strategies may be in place for things like training and development where elements can be discovered along the way for example if an issue arose where staff needed more health and safety training then the training programme could be redirected. Ryanair, as already stated, follows neither strategic approach religiously and possesses a strategy unique to their organisation, which has identified their needs and objectives. However their approach to strategic management isn’t unique in itself as the majority of organisations will tailor strategies to suit their business’ own individuality. II. 3 Competitive Advantages Their main competitors are carriers including easyJet, BMI baby, FlyBe and ThomsonFly all of who try to attract potential customers by emphasising their low cost tickets. This makes the competition in this market segment fierce as in order to offer the lowest fares, costs must also be kept to a minimum. The well discussed fact that Ryanair possesses a more than favourable relationship with airport operators has benefited the carrier in a time of industry growth and aggressive pricing. The carrier continues to pay little or no costs despite being the focus of the EU Commission in February 2004, ‘which ruled that Ryanair had been receiving illegal state subsidies for its base airport at publicly-owned Charleroi Airport’, O’Higgins (2004), see Appendix C for full details of the controversial dispute. Ryanair and the airport in question defended themselves by declaring they paid a fee for every customer and therefore complied with the EU state aid rules. O’Higgins (2004) claims that Michael O’Leary’s main argument was that the ‘state aid rules allow the Wallonian government to stimulate traffic at an unused airport facility in exactly the same way that every private airport reduces its charges it if wishes to grow its business’. However, although these decisions by the EU Commission went against Ryanair, it also made them even more of a household name across the EU. The free publicity was an added bonus, as well as the position Ryanair took, of being almost a saviour of the lesser known airports, bringing them trade and tourism and then being persecuted for it. III. Functioning A business’ functions and internal resources can be considered extremely important to an organisation. When running smoothly they ensure business operations are kept on an even keel. If any aspect is disrupted or an issue arises then the whole value chain can come apart. This section firstly provides a SWOT analysis of the company, giving a brief overview of the company then looks at some of Ryanair’s most important functions or business areas and how they might influence or affect strategic decisions III. 1 SWOT Analysis Factor Strengths Ways which factor applies to RyanAir Marketing – strong branding and reputation, aggressive price strategy. Low costing due to airport operator deals. Reputation as biggest budget airline. Lots of publicity due to O’Leary and controversial issues. Cash tied up in purchase of new planes. Entire company based on European low cost airline market. Shock profit warnings may have used cash reserves and weakened fiscal structure Refusal to back down over issues such as EU Commission Possible new routes, New planes = larger capacity. Advertising space on website and planes, more revenue Competitors – BMI baby, Easyjet, ThomsonFly. Economic recession would mean less disposable income. EU Commission could put restrictions on company if do not adhere to state aid rules Weaknesses Opportunities Threats III. Human and Technical Operations Human resources can be considered one of the most important functions of a business. The vast majority of organisations all employ staff and Ryanair is no exception especially due to their size. When the carrier was established over twenty years ago they only had fifty one members of staff on their payroll. Their staff total for last year was 2,288, www. ryanair. com. With this amount of staff they have to ensure that, in order to have operations like call centres and cabin crews running smoothly, they keep their staff happy and motivated. They do this by offering incentives and a share option scheme which allows employees to participate in the success of the company overall. Ryanair’s technical operations should mainly revolve around their aircraft as this is the core of their business. In February of last year they announced an order placed with Boeng for 70 firm aircraft as well as 70 options, www. ryanair. com. This means that between now and 2012 Ryanair will have 225 firm aircraft and options for another 220, allowing them to grow to over 70 million passengers per year. Due to this excellent deal negotiated by the carrier their growing amount of aircraft will not add huge amounts to depreciation costs as they will be depreciated over 23 years. Ryanair has always owned instead of leasing its aircraft but they plan to have a third of their fleet leased in the long term. O’Higgins (2004) argues that ‘owning rather than leasing allows maintenance costs to be capitalised on the balance sheet rather than be reflected in the variable costs’. Technical operations have to run smoothly for obvious reasons, if a plane scheduled to make a flight for technical problems, for example, then this will impact n all of Ryanair’s operations and functions and also cause disharmony amongst their passengers, possibly costing them future ticket sales. III. 3 Customer Relationships In 1999 Mintel published a report on passengers’ attitude to no frills airlines. Haberberg and Rieple (2001) have summarised this in the table found in Appendix B. This shows that passengers are willing to dispense with the usual levels of airline service and considering it has been seven years since the mentioned Mintel report, the industry has shown it is viable, has staying power and it can be said, has enjoyed a boom period due to it’s growth. Ryanair constantly offers its passengers the lowest fares in Europe, www. ryanair. com, but has developed its current no frills policy in order to keep costs to a minimum and therefore be in a position to provide cheap seats. However sometimes their no frills policy does backfire. Recently customers have claimed that the destinations offered by Ryanair are misleading as they fly to the regional airports near to the destination city advertised which can sometimes be miles away. O’Higgins (2004) reports that in ‘December 2003, the Advertising Standards Authority rebuked Ryanair and upheld a misleading advertising complaint against Ryanair for attaching ‘Lyon’ to its advertisements for offers on flights to St Etienne’. Ryanair maintains that their advertising is not misleading as Lyon is printed underneath St Etienne, however this still caused one passenger to turn up at Lyon airport only to find that her Ryanair flight left from St Etienne some 75 kilometres away. Ryanair choose to fly to the regional airports rather than the larger national airports due to the favourable cost terms they receive although they argue it is this fact which helps to keep their fares low and also has the added bonus of being less congested therefore helping their flight punctuality. Ryanair were also targeted in 2004 for charging one passenger for the use of a wheelchair. Although they argued strenuously that it was the airport’s responsibility to provide help for disabled passengers they still lost the court case brought against them and had to pay â‚ ¬2,400 in compensation. This situation worsened when Ryanair retaliated by levying 70c on all flights leaving from the four airports who do not provide free disability equipment. Things were brought to a head however later in the year when Ryanair made a group of blind and partially sighted passengers disembark their flight stating that they were not allowed to carry more than four passengers at a time. Although Ryanair insisted their disability policy exists for safety reasons, Watchdog reported at the time that no other British airline has a maximum amount of blind people they can carry, www. bc. co. uk. All this bad publicity has not helped Ryanair’s brand name but it does not seem to have affected sales figures as ultimately customers are looking for the cheapest way of travelling. Although Ryanair should remember that whilst their no frills, low budget policy has made them highly successful, they also need to keep the majority of their customers satisfied otherwise they could be setting themselv es up for a large fall from grace. III. 4 Financial Structure Since restyling the business into a budget airline, Ryanair have consistently increased in profitability. O’Higgins (2004) reports that in 2003 Chairman David Bonderman ‘pointed out what an awful year it had been for the airline industry, what with war in Iraq, and an outbreak of SARS’. Despite this Ryanair announced increased profitability, making it their 13th year of consecutive rising profits. Other factors which played parts in Ryanair’s fiscal success, as discussed by O’Higgins (2004), were: Net margin increase of 24 per cent Staff efficiency ratio up by 15 per cent Market capitalisation had grown from â‚ ¬397m in 1997 to â‚ ¬4. 3bn by 1 July 2003 Profitability seen to be unique among airlines worldwide However in 2004 they received a sharp shock when after announcing a shock profits warning and they became the second worst performer in the FTSE Eurotop 300 index up to the end of April. On top of this O’Higgins’ (2004) states that ‘O’Leary predicted that the company’s 2004 profits would decline by 10 per cent ’ therefore ending their profitable run. More recently Ryanair have enjoyed profitability once more, as shown in Appendix C, the main point being a rise in net profit last year of 18 per cent. III. 5 Leadership Ryanair’s fight for survival in the early 1990’s saw them bring in a new management team, headed up by Michael O’Leary. The success of the carrier’s restyle into a no frills airline has made him a very wealthy man, having sold shares off every year since the company was floated has earned him in the region of â‚ ¬200m but still left him with a 5. 4per cent stake, making him the largest shareholder, O’Higgins (2004). Despite the airlines huge success with Michael O’leary at the helm, he himself has come under scrutiny, resulting n both praise and criticism for both himself as a leader and his management style. O’Higgins (2004) argues that it is his publicity seeking antics which have earned him a high profile but also his outspokenness which has brought him into the public eye. This is true as O’Leary makes sure he is personally involved with the publicised events concerning Ryanair, such as the EU Commission investigations. So much so that the EU Commissioner for Belgium has described the airline chief in the Irish Times as ‘irritating’ and ‘arrogant’, Creaton (2004). O’Higgins (2004) supports this by declaring ‘he is called everything from arrogant pig to messiah’. She also discusses that ‘present and former staff have praised O’Leary’s leadership style, and in an interview with the Financial Times Magazine Tim Jeans argues that ‘Michael’s genius is his ability to motivate and energise people’ and goes on to state that the airline is ‘without peer’, Bowley (2003). This last statement is debatable however as it is O’Leary who is consistently hitting the headlines and not the rest of the management team or staff. O’Higgins also supports this point, stating ‘Ryanair is inextricably identified with its dynamic chief executive. He is credited with single-handedly transforming European air transport’. Although it should be noted that O’Leary himself disagrees with this last part declaring ‘I am not Herb Kelleher (the legendary founder of the original budget airline, Southwest Airlines in the US). He was a genius and I am not’, Bowley (2003). Finlay (2000) discusses the three main characteristics of leaders, outlined below. They must have a strongly held vision They must be able to communicate that vision They must be able to convert the vision into reality When O’Leary took over at Ryanair his vision was very clear, to model the carrier on Southwest airlines and create Europe’s first no frills carrier. As far as external communication is concerned it is well recognised that Ryanair was one of, if not the first, budget airline in Europe. Internally, Tim Jeans revealed ‘there is an incredible energy in that place. People work very hard and get a lot out of it’, Bowley (2003). Certainly the vision has turned into a reality as Ryanair has grown and the ‘public’s insatiable appetite for bargain getaways has continued to deliver record profits at Europe’s biggest no frills airline’, Davey (2006). While O’Leary possesses Finlay’s (2000) characteristics for a leader, his leadership style does not fit rigidly into a type. The below diagram, adapted from Cook et al (1977) shows the types of leaders Finlay (2000) believes to be the more dominant styles. TASK RELATED ORIENTATION LOW PEOPLE RELATED ORIENTATION LOW HIGH Laissez-Faire Human Relations HIGH Autocratic Enrolling The majority of O’Leary’s leadership style sits within the enrolling section. Ryanair is highly task orientated, concentrating on tasks such as cost cutting, aircraft acquisition and route development. They are also highly people orientated, both with customers and their staff. However, because of Michael O’Leary’s public status his leadership style varies slightly from this model. If Tim Jeans is to be believed in his interview, Bowley (2003), then he should be almost revered. On the other hand he manages to aggravate important people who could have the ability to affect Ryanair’s profits negatively. To add to this it has been discussed whether Ryanair should replace O’Leary as their CEO, McManus (2003). As Ryanair were recently pulled back from the brink of a shock profits warning perhaps it would be fair to give O’Leary the benefit of the doubt and concede that, for now, his leadership style seems to be working. However Ryanair should be wary of the fact that he does not seem to enjoy smooth sailing. O’Higgins (2004) states that when the shock profit warning was announced O’Leary was ‘irrepressible’ and declared ‘this is the most fun you can have without taking your clothes off. It is much more fun when the world is falling apart then when things are boring and going well’, Creaton (2004). While this may just be a glib statement to rebuff negative press, it could be a characteristic of the man himself, in which case could well be interpreted into his management of the company. III. 6 Implications on strategic positioning As already discussed, any part of Ryanair’s internal operations and functioning will affect the company as a whole if not running smoothly. Dennis Foster (2006) stated in his lecture on Managing Strategic Change that change is a ‘people based process’. This means that both staff and customers will have implications on Ryanair’s strategic positioning and any changes they make to it. As supported in the leadership section of the report there is a good working atmosphere and relationship between O’Leary and his employees. This will not particularly impact on Ryanair’s strategic positioning as at the moment it seems to be running smoothly, however the carrier should be aware of factors such as health and safety, equal opportunities and trade unions to ensure they are a fair employer and do not deter potential employees. Customer relationships are also generally good, with the company aiming to grow to 70 million passengers per year in a few years time, they should seek to nurture existing customers and their relationship with Ryanair flights in order not to let their position slip. Cavendish (2006) argues that ‘Ryanair’s revenues last year apparently included almost two million flights that were booked by passengers who never showed up’. While this is good for Ryanair from a financial point of view, it does not reflect will on them from a customer relations aspect and could affect their position and strategy. Ryanair’s recent trouble profit wise certainly would have had implications on their strategic positioning as they would have had to re-evaluate their strategy and fiscal management. This was obviously done well as a year on from their shock profit warning and they had turned it around. However they should be wary of something similar happening again and make allowances in their strategy to intercept this and hopefully divert any more major trouble. Ryanair are well positioned strategy wise at the moment. They are currently Europe’s biggest no frills, budget airline with big plans for expansion. They need to stay aware of any changes that may affect them and possibly give them cause to redirect their strategy and this can be achieved by keeping a close eye on their business environment. However, as long as the market demand stays high and they continue to keep their costs and therefore their ticket prices low, then with their current strategy, business outlook and leader there is no reason for them not to flourish. IV. Environmental analysis When the airlines were first deregulated it was believed they faced various strategic pressures as stated by Lynch (2000). These included airline closures, major profit falls and new competitive pressures. However, although these aspects may have affected long standing airlines such as British Airways, it also created a gap in the market which Ryanair took full advantage of. Wheelen and Hinger (1993) support this by discussing how many airlines abandoned the smaller communities to focus on the larger markets which in turn opened opportunities for new commuters, these mainly being budget customers. O’Higgins (2004) agrees and states that Ryanair’s ‘fight to survive in the early 1990’s saw the airline restyle itself to become Europe’s first low fares, no frills carrier, built on the model of Southwest Airlines, the highly successful Texas based operator’. Haberberg and Rieple (2001) also determine that part of Ryanair’s success was being ‘established at a time not only of a period of prolonged growth in its home market but also when discontent with high fares and limited or non-existent competition was increasing’. They also attribute some of Ryanair’s growth and profits to the Irish economy. As Ryanair is an Irish airline they took advantage of being based in Europe’s fastest growing economy at that time. Haberberg and Rieple (2001) argue that this benefited Ryanair as the ‘airline industry has traditionally been sensitive to economic growth cycles’. To look specifically at Ryanair’s business environment in more depth a PEST analysis was conducted in order to evaluate the following environmental factors affecting the carrier. These are: Political Economical Social Technological This analysis was based on Haberberg and Rieple’s (2001) view of this process for evaluating business environments, see Appendix A. Factor Political Ways which factor might affect RyanAir Change of government/policy Ryanair have been involved in various legal disputes with governments both in this country and the EU regarding their business deals with airports and airline regulatory bodies Political changes in countries where they have routes to (could also be affected by above point) Governments in countries they fly to may support their own flagship carrier Local councils objecting to noise and new runways being built as in past Governments looking to increase tourism might welcome Ryanair and therefore act in their favour. Potential economic recession, Ireland’s economy has already been stated as growing however this may suddenly change. Because of above main customers wouldn’t fly for business as would be cost cutting Energy and fuel costs are cause of uncertainty Economic change within countries they fly to or would hope to open new routes to, for example war with Iraq has shut off any hope of tourism there for the foreseeable future and other factors such as SARS (O’Higgins, 2004) and more recently, Bird Flu. Because of economic growth at the moment it has become normal to fly away for holidays therefore market has expanded and new opportunities for tourism have opened in previously unconsidered countries. Business trips, although Ryanair do not offer luxury they are possibly more attractive because less cost to a company means they can travel more frequently. Lower costs means attract a wider demographic of consumer Main threat to business market is video conferencing To a lesser extent VOIP Online check-in, self service check in at airport O’Higgins, (2004) discusses that Ryanair currently have a fleet of mainly Boeng 737s which are one of the best known and used commercial aircraft. ‘Thus, the company is able to obtain spares and maintenance services on favourable terms thanks to economies of scale, limit costs of staff training and offer flexibility in scheduling aircraft and crew assignments’. Economic Social Technological V. Recommendations V. 1 Changes to ensure sustainability Davey (2006) declared at the start of this year that ‘figures released yesterday show that (Ryanair’s) formula is continuing to work’. This is directed at Ryanair’s aim to keep fares low, mainly by not introducing fuel surcharges. Actions like this, which were of course highly publicised, ensure Ryanair is constantly attracting customers. Part of Ryanair’s success is made possible by the fact they are such a lean company, both in the way they operate and the services they offer. O’Higgins (2004) claims that when the carrier dropped their cargo services, although they were going to be losing â‚ ¬500,000 of revenue a year, they decreased the turnaround time of their aircraft from 30 minutes to 25 minutes to attract more business travellers who required the punctuality. Innovativeness like this has ensured Ryanair’s sustainability and will carry them forward into the future. To recommend any major changes would be to predict how the airline industry will change which ultimately cannot be foreseen. However it has been concluded that the budget airline will continue enjoying its boom, with many passengers now enjoying the short breaks away at a low price. Also the advent of new routes will bring more custom, from both departure points. If there was to be a drop in demand Ryanair would certainly suffer and subtle shifts in their strategy could be appropriate. For example offering drinks vouchers onboard for the customer’s next Ryanair flight might entice more people back, or making alliances with hotel groups in order to offer a complete package, rather than just selling advertising space on their website. Ryanair should also pay attention to the technological changes happening in their industry, such as online check in; this could save them out sourcing check in staff at their airports which would enable them to cut their costs down. VI. Conclusion On the whole Ryanair seem to be following a strategy which works for them. They are obviously aware of their business environment and understand the importance of monitoring it as they took advantage of the opening in the market when they restyled themselves over a decade ago. However they need to be aware that this environment is constantly shifting and evolving and therefore maintaining a close eye on it and being ready to adapt to any changes should be a fundamental part of their strategy. Davey (2006) sums up Ryanair’s current position and future opportunities succinctly by stating ‘at 16 times forward earnings, the share price does not look too demanding given that this is a genuine growth story. It will take some time before the wings of this â€Å"Tesco of the skies† are clipped’. VII. References www. bbc. co. uk Bowley, Graham, ‘How low can you go? ’ Financial Times Magazine, no. , 21 June 2003 Cavendish, Camilla, ‘A policy that pretends we can all fly on the cheap is a policy that won’t fly’, The Times, 5 January 2006 Creaton, Siobhan, ‘Turbulent times for Ryanair’s high-flier’, Irish Times, 31 January 2004 Davey, Jenny, ‘Ryanair has earned its wings – inv estors should set autopilot’, The Times, 6 January 2006 Finlay, Paul (2000), Strategic Management. An Introduction to Business and Corporate Strategy. Pearson Education. ISBN 0 201 39827 3 Haberberg, Adrian Rieple, Alison (2001), The Strategic Management of Organisations. Pearson Education Ltd, ISBN 0 130 21971 1 Lynch, Richard (2000), Corporate Strategy 2nd Ed. Pearson Education Ltd, ISBN 0273-64303-7 McManus, John, ‘Maybe it’s time for Ryanair to jettison O’Leary’, Irish Times, 11 August 2003 O’Higgins, Eleanor, (2004), Ryanair www. ryanair. com http://web. tic. ac. uk/staff/fosterd Wheelen, Thomas L Hinger, David, J (1993), Cases in Strategic Management 4th Ed. Addison-Wesley Publishing Company Inc. ISBN 0-201-568659 VIII. Bibliography Mintzberg et al (2003), The Strategy Process, Concepts, Contexts and Cases. Pearson Education Ltd. ISBN 0-273-65120X Morden, Tony (1999), An Introduction to Business Strategy 2nd Ed. McGraw-Hill. ISBN 0-07-709451-4 Stacey, Ralph D (2000), Strategic Management and Organisational Dynamics. Pearson Education Ltd. ISBN 0-273-64212-X Thompson, John L (1990), Strategic Management, Awareness Change. Chapman Hall. ISBN 0-412-37500-1 IX. Appendices IX. 1 Appendix A – PEST Analysis, Haberberg and Rieple (2001) Analysing the macro-environment Political Political and legal factors encompass actions by local and national administration and political parties, and by international bodies such as the European Commission, the UN and the World Trade Organisation. Economic Consumer spending power is a major factor in the prosperity of any industry. In most developed and a number of developing countries, personal disposable income has been steadily increasing for the past three decades. Social Consumer tastes ultimately determine where demand is directed. Sometimes these tastes are manifested in what consumers themselves actually buy. In other cases they are expressed through voting, lobbying and other political processes, which influence the decisions of politicians and civil servants. Technological Many major transformations in the ways firms compete can be traced to technological change. Sometimes these changes span the boundaries of many industries and trigger changes in society itself. IX. 2 Appendix B – Selected responses to survey on no-frills airlines – Haberberg and Rieple (2001), (source: No frills/low cost airlines, Mintel (February 1999)) All (%) Not bothered about the lack of in-flight 34 Experienced nofrill travel (%) 55 Intend to travel on no-frill (%) 66 atering Would not fly long haul on a no-frills carrier Good that no travel agent is required No ticket to worry about If a no-frills airline flew to my destination, I would consider it first 29 19 16 37 35 22 40 46 29 21 34 49 IX. 3 Appendix C – Excerpt concerning Ryanair’s dispute with the EU Commission, O’Higgins (2004) The subject of the EU decision was based on non-discrimination legislation preventing airports from offering differential deals to different airli ne operators, and by an embargo on state subsidies to airlines. Incited by Ryanair rivals such as Air France, Virgin Express and easyJet, Ryanair’s deals with regional airports had caught the eye of the EU Transport Commissioner, Loyola de Palacio. An EU investigation was launched in late 2002 as to whether Ryanair had been in receipt of illegal state subsidies since its year 2000 establishment of a base at Charleroi. Apparently, the EU Commission had been shocked by alleged offers of a 50 per cent landing fee discount to â‚ ¬1 per landing passenger and an even larger handling fee discount to â‚ ¬1 instead of â‚ ¬8 to â‚ ¬13 charged to other airlines, pushing the fee below cost. The airport also provided a contribution of â‚ ¬4 per passenger for promotional activities for 15 years. This was on top of initial incentives of â‚ ¬1. 92m for opening new routes, â‚ ¬768,000 in reimbursements for pilot training and â‚ ¬250,000 for hotel acc

buy custom The Fall of Enron essay

buy custom The Fall of Enron essay Kenneth Lay was the chief executive officer of Enron Corporation at the time of its collapse in 2001. The crisis was not exclusively due to poor corporate culture, but the corporations entire department directly contributed in the operation of the companys corporate ethical principles and values. It is the executive under the leadership of Kenneth Lay that bear primary responsibility for the lack of corporate culture, corporations transparency, and clear accountability. If he had ensured that the operations management of the company had its works done in a proper manner, and if he had made it possible to work in such a manner, then, there could have been a chance of evading the crisis. Some of the major management principles that the chief executive officer failed in is Centralization and Decentralization. Whereas the enterprise was so highly praised and highly rated by the external observers, internally, we find that it had a highly decentralized structure of decision-making and fin ancial control (Lynn, 2002). This actually rendered it really difficult to get clear and logical, or coherent view on the operations together with activities of the enterprise. It goes without saying that the disaster in Enron did not occur accidentally. However, enhancement to the same was brought by a corporate culture that greatly facilitated and encouraged fraud, as well as insatiability, as shown by the traders of energy that extorted the consumers of energy from California. Instead of putting its focus on the creating of real value, the sole goal of management was in the maintenance of the value appearance, thus leading to an increase in the stoke price. Lay did ignore the principle of Party of Authority and responsibility, that is, externally; the rationales together with attitudes behind the decisions and events that resulted to the downfall appear to be rather simple. The environments of corporate arrogance lead to the formation of individual and collective greed. As the reputation of the corporation in the global environment grew bigger and bigger, its internal culture started worsening considerably. Skilling, established the PRC (Performance Review Committee), which earned the reputation of the most insensate system of employee-ranking in the entire nation. Notionally, the preparation of this review system was on the basis of the corporations values; respect, communication, integrity, and excellence. Discipline is also another major principle of management that the executive showed ignorance of. Being apparently a strong business with a clear hierarchy and powerful management, the internal organization of the corporation had a number of weaknesses. The executive failed in the offering and further development of positive control atmosphere, and did not contribute in the shaping of the companys ethical value, strict accountability, integrity, and philosophy of management. The corporate policies in communication and formulation, whereby the operations management of the corporation took part, were erroneous and not in compliance with the corporations initial values. In ignoring the principle of Sub-Ordination of Individual Interest to General Interest, we find that the Harsh and strict hierarchy, as well as the system of performance appraisal whose creation was done by Skilling, distorted the initial ethical base and values of the business, which included excellence, integrity, respe ct, and communication; thus replacing them with the priority of gaining revenue regardless of the means thereof (Collins, 2006). This greatly motivated the workers to engage in various dubious practices, and was given rewards for bringing revenue to the company. The entire managerial machine took part in this process, thus reducing the functions that it had in the fulfillment of the newly-formed value and philosophy of the corporation. In addition, Fastow, the then Chief Financial Officer took the position as a chance for himself, together with his friends and relatives, benefiting themselves by involving in some dubious behaviors which rendered the company bankrupt. Buy custom The Fall of Enron essay

How to properly read a job posting so you dont apply to a terrible job

How to properly read a job posting so you dont apply to a terrible job When you’re on the job hunt, it’s almost like you need to become fluent in a new language. You need to look at a job description and figure out if it fits your experience and then whether applying for the job is even worth your time. You need to know what common phrases like â€Å"competitive salary,† â€Å"flexible,† and â€Å"growth opportunity† are really telling you about this company and this job, and how to adapt your resume to fit what it requires. But while you’ll certainly face a lot of jargon when searching for a new position, once you understand how to decipher any job posting you come across you’ll save a lot of time and energy.Anatomy of a job postingJob postings are often written like news articles: the most important information is presented right up front, with the extra supporting information down toward the bottom. First, let’s look at the straightforward parts of a standard job ad.The job title: This is basica lly the headline. It’s what you see in an email subject line or on the search results screen. It’s what grabs your attention first and sets the expectations for the rest of the post. Some job title lines will offer the company name or other (succinct) details like the experience level, but many will just be the job itself.Executive Assistant at Fortune 500 CompanyData Management ClerkLevel II Auror at the Ministry of MagicResponsibilities/description: This is where the narrative kicks in. This is usually a brief paragraph or series of bullet points outlining the highlights of the job. It’s not typically comprehensive, but provides a high-level summary of what the job is.Meet aggressive sales goalsProduce 5–10 newsletters per yearGenerate monthly sales reportsQualifications: This is where you kick in. The company has outlined what job they’re filling and what that role does, but now it shifts the focus to you: do you have what they’re seeking ? This is typically a section of bullet points outlining what the company’s ideal candidate for this position would already have.Associate’s Degree in Business or related field5-7 years experienceEnglish and Spanish language fluencyBenefits and pay: This is usually a short section outlining any specific salary and benefits associated with the job. This section may or may not be included in a job description. Benefits are listed far more often in job descriptions than a specific salary, because the benefits can be used as a lure, while a salary number may be either a dealbreaker for potential candidates or might limit the company’s ability to negotiate after a job offer has been made.401(k) matchingSalary commensurate with experienceDental and vision insuranceAbout the company: Company information is especially common when a job is posted in a database or another public forum like a website because the readers may not be familiar with what the company is or does. This is usually a brief statement about the company itself, or its general mission.Giving Hands is a nonprofit company that sends balloon animals to people in need.Cutting Edge Media, LLC is a digital media powerhouse that publishes immersive social media content.Since its founding in 1846, Big Books has shaped public debate by publishing award-winning content about dolphin life and philosophy. How to read between the linesFirst of all, know that a job description isn’t necessarily meant to be taken literally. It’s an ad sent out based on the best estimate of what a job will be and what kind of candidate the company wants to see applying for it. So while it’s absolutely a guideline, nothing is 100% etched in stone. Positions evolve over time, and a stellar candidate with slightly different skills might lead a company to tweak the initial description into something a little different.Job title:  While it seems pretty straightforward, this can sometimes have cl ues about the company and the qualifications you’ll need. For example, in the earlier example of â€Å"Executive Assistant at Fortune 500 Company,† the job title is used to establish the importance of the position (working with executives, so probably not entry-level) and that the company is large and/or prominent.Responsibilities: Again, this is a high-level summary of what the company anticipates for this open job. There may be significantly more (and more specific) duties awaiting the future holder of this job. If you see six rather vague responsibilities and want to know more about what the day-to-day life is like for this role, you can do a little digging online to see if there’s more information available about this particular job at this particular company.If you see a phrase like â€Å"other duties as assigned† or a similar phrase that leaves the job responsibilities open-ended, then that should tell you that the company values flexibility and lik ely has an all-hands-on-deck mentality. That’s a cue for your resume and cover letter package- definitely emphasize your flexibility as an employee and your commitment to getting the job done whatever it takes.Qualifications: If you don’t hit every single bullet point, don’t automatically give up and move on. (Though if you meet, say, 1 qualification bullet point out of 10, this job might be a bit of a stretch.) If you meet most of the job’s requirements, you should still consider applying. You can provide context in your cover letter and resume and emphasize the requirements that you do meet. It may be that the qualifications you’re missing are â€Å"nice to have† instead of â€Å"must have† from the company’s perspective or that your other qualities make up for that one deficit. So don’t let one or two misses discourage you from applying if you’re a good fit otherwise.Benefits and pay: There’s lots of rea ding between the lines here because job descriptions rarely pin down an exact salary or benefits. With phrases like â€Å"commensurate with experience† or â€Å"competitive salary,† the company is basically saying, â€Å"we’ll deal with this later, and be ready to negotiate if we offer you a job.†If you see a request to send your â€Å"salary requirements† along with your resume, that means you’ll have to do some finessing in your application. You can include a salary range in your cover letter. It’s probably wise not to ignore the request altogether- if it was included in the job posting, it’s possible that leaving out the salary requirement would screen your application right out of the running. But you also don’t want to get too specific, because that number could eliminate you as well if it’s too high or too low.About the company: There’s not usually a lot of mystery in this part of a job description. B ut just remember that the company is describing themselves in a very official, public-facing way. If you’re expecting a candid description of what it’s really like to work for this place, or their flaws, well†¦your expectations will not be met.You might also come up against a case where the company isn’t named at all. That can either mean that A) the company is shady; or B) the company is trying to be discreet. If it’s option A and you’re finding a vague, unnamed company advertising jobs on, say, Craigslist, all I can say is†¦think twice. If it’s option B and there’s other information given about the company (it’s a major media company or a top-tier financial company), then it’s possible they just want to avoid either getting a million applications for a single position or don’t want it made public that they’re advertising for someone’s job because he hasn’t been, uh, relieved of his duties yet. Look for context clues about the company if there isn’t a straightforward presentation of X job at Y company.Decoding the buzzwordsEvery field is subject to jargon or clichà ©d phrases, and the art of the job description is no different. Let’s look at some common words and phrases, and what they really tell you.Self-starter/independent worker: This means they’re looking for a person who is ready for a leadership role who doesn’t need a lot of hand-holding. In your application, emphasize your leadership skills or instances where you’ve taken the lead on something.Fast-paced: This job is going to be chaotic and likely subject to deadlines. In your application, demonstrate what you’ve achieved under pressure, or your unwavering commitment to deadlines.Flexible: The company may be looking for someone who’s not afraid to do a bit of scut work as part of their job, or who will be willing to go outside the normal 9-to-5 routine to get the work done. It could signal work-life balance boundary issues, so if you have concerns about this, a little extra research about the job or the company is in order. In your application, emphasize your ability to perform under pressure, or your ability to multitask.Detail-oriented: This company has received one too many applications with blatant typos, and/or the person currently holding this job has made a lot of messy mistakes. In your application, emphasize your organizational skills and your commitment to getting something done efficiently but accurately. And do not skimp on proofreading your resume and cover letter.Communication skills: This shows that the company wants someone publicly presentable, either with customers, clients, or other parts of the company. This is a delicate way of making sure that you can write and speak well and confidently.Growth opportunity: This is likely a low-level or entry-level job and the company might not expect you to commit long-term . That could be a good thing (the last assistant was promoted after six months in the job) or a bad thing (the last assistant got fed up and quit after three months on the job). Definitely mark this as a follow-up item if you get an interview- ask who had previously held the role (generally), and what they’re doing now.Team player: This is not a job for a lone wolf type, who would rather hole up and do the job himself rather than deal with others. In your application, emphasize how you’ve worked with others to achieve goals and, ideally, how you’ve led or inspired others to meet goals as well.So as you can see, there’s no great Rosetta Stone needed to work with the job descriptions that you’ll come across in your job search. And in fact, these postings are more similar than not, so once you learn the basics about what companies are trying to achieve with their limited space in a job ad, you’re ready to go forth and start tailoring your resum e to be the best possible candidate.

Dell evaluating the potential outsourcing of the firms software Essay

Dell evaluating the potential outsourcing of the firms software development services in Russia, Brazil, and UAE - Essay Example The firm has managed to create a powerful network of branches internationally. However, its performance is not stable, meaning that the firm has been proved vulnerable to market pressures, as this problem can be identified in the firm’s financial statements, as, indicatively, analyzed below. The review of the firm’s financial and operational characteristics and challenges has led to the assumption that the outsourcing of the firm’s software development services would significantly strengthen company performance through the improvement of the rate of response to customers’ orders and requests. At the same time, the firm’s position in its industry would be stabilized and strengthened since the firm would be able to achieve an important increase of its profits even in the long term. At this point, the following issue appears: which country would become the firm’s most important supporter, in terms of the promotion of the particular business proj ect. The potential participation of a firm based on one of the following countries: Russia, Brazil and UAE is evaluated in this paper. It is concluded that all three countries have certain advantages for supporting such business project. However, seems that two of them, Russia and UAE would be preferred, as they are proved more ready to support the specific initiatives. The basis of this assumption is presented below. The characteristics of the company and of the industry involved are also explained at the level that they can justify the decision of the firm to outsource its software development services. 2. Dell – analysis of the aspects of outsourcing the firm’s software development services in Russia, Brazil, and UAE 2.1 Company characteristics Dell is a

Businese Essay Example | Topics and Well Written Essays - 1000 words

Businese - Essay Example Hip Hop music is different from the other music genres in many respects. The beat is specifically targeted at the young and energetic youths who still enjoy dancing and listening to fancy music. The targeted audience for Hip Hop music is also characterised by similar features such as interests, dressing as well as preferences. According to TSMITHCHS (2013), â€Å"People who listen to R&B/hip hop music listen to radio and TV stations such as MTV BASE, Radio1 Extra and Kiss.† The programmers of these specific channels design their content with the aim of fulfilling the needs and interests of the young urbanites. The other interesting facto about the targeted audience of Hip Hop music is related to the aspect of dressing. The youths mainly prefer trendy, fashionable and designer clothing. These youngsters mainly prefer to buy their clothes and footwear from reputable brands such as Nike, Adidas, Hugo Boss, Prada and  Giorgio Armani (TSMITHCHS, 2013). These youths also like to w ear stylish and high fashion clothes that are often associated with celebrities. Generally, the youths belonging to this category are more interested in their presentation and appearance more than anything else. The other important characteristic of the targeted audience is that this group is comprised of young adults who are working on either full or part time basis. These people are no longer dependents and they can afford to buy what they want on their own. The group is also characterised by people who still enjoy going to clubs and the majority of them are still at the stage of experimenting quite a number of youthful things. The genres of Hip Hop music are written by artists who are still young as well and they also have similar interests with their targeted audiences. The writers of these genres also wear designer fashion with expensive labels. They are the ones who influence as well as shape the behaviour of the targeted audiences. These people are often viewed as role models by the targeted audiences and they try to emulate their behaviour as much as possible. The writers of Hip Hop music also prefer to play live shows in places such as nightclubs which are frequented by many young people. The youthful behaviour is still evident between both the writers as well as target audiences of the genre of Hip Hop music. The targeted audiences for this particular genre mainly use it for entertainment. The young and energetic youths can dance to this kind of music the whole night and they find this so exciting. The audiences also enjoy the lyrics portrayed in different songs. Apart from playing the entertainment role, Hip Hop music is also comprised of messages that are designed to fulfil the needs of the targeted audiences. In some cases, the lyrics are comprised of love messages and the beat is presented in a unique way. The targeted audiences also use this particular type of music to create a culture and identity different from other groups. These people are a lso known as urbanites or bingers in social circles and they wish to maintain the culture of this cliche. The tastes and preferences of the listeners of Hip Hop music is different from any other group. Essentially, the listeners of Hip Hop music want to portray themselves as unique and a special group comprising of people who are so special by virtue of their preferences and interests. These people also feel that their

Insight On Necrophilia,whats T Essay -- essays research papers

Insight on Necrophilia (1999)   Ã‚  Ã‚  Ã‚  Ã‚  The author Barbara Gowdy has succeeded in “We so Seldom Look on Love'; to arouse our curiosity through a romanticized depiction of what most would consider a sin, necrophilia. It is most probable that society in the nineteen fifties influenced the style and choice of characters to explore such delicate and obscure behavior. Barbara Gowdy proved herself to be very clever by opening a passage through the soul of a young woman, in order to humanize the inexplicable lust for dead flesh. What better way to translate imagination in its purest form than through the soul of a young women: “When you die and your earthly self begins turning into your disintegrated self, you radiate an intense current of energy.'; (p. 1) Certainly the author wishes to offer an approach to necrophilia that defies the reader’s expectations. The idea that such a disturbing behaviour can evolve in the heart and body of a girl at such a young age, can alter the reader’s preconception on the necrophiliac’s physical and emotional profile: “Necrophiles aren’t suppose to be blond and pretty, let alone female.'; (p. 4) With this statement, Barbara Gowdy reinforces the contrast of the story versus the judgement of her society in the fifties. When the author decided to explore a controversial matter of sexual nature, such as necrophilia, she made a thoughtful decision by choosing ...

Jefferson’s Declaration Of Independence And Lincoln’s Gettysburg Address Essay

Two of the most prestigious and respected leaders of the United States of America, Thomas Jefferson and Abraham Lincoln, are notable for their great speeches and written works because they not only instilled patriotism in the American audiences, but unity, hope, and history as well. Examples of these skills are clearly found in Jefferson’s Declaration of Independence and Lincoln’s Gettysburg Address [http://www.youtube.com/watch?v=kMMzY1KJVeo], for each of these documents is a solid, memorable piece in style and historical support. Both pieces begin with many similar key factors, establishing affinity between the speaker and his audience on the concrete basis of a common background. Jefferson does not say â€Å"I hold these truths†¦Ã¢â‚¬  or â€Å"the government† or even â€Å"you, the public† when beginning his famous declaration. The first word of The Declaration of Independence is â€Å"We†. â€Å"We hold these truths to be self-evident†¦Ã¢â‚¬  creates a bond between Jefferson and the reader. He acknowledges them as an equal before even finishing his sentence. This will not only serve as an illustration for equality between the American public and himself, but with the entire governing system. In breaking away from Mother Europe, the United States sought to build a country where no one person was placed above the common man and therefore had a lesser chance of eventual corruption. Jefferson’s inclusion of the reader, the common man, symbolizes this unanimous desire. Abraham Lincoln too, unifies his audience with his eloquent streams of words in the Gettysburg Address. He explains to the reader that â€Å"our fathers†¦Ã¢â‚¬  were the ones to create a new, liberated nation, and for this reason we are to this day equal in all of our prospective endeavors. Obviously, if he states that we all came from the same historical â€Å"fathers†, then we are in that respect not only equal, but bound to each other through a certain kinship. Lincoln furthers this inference when he sets up a personal, communal past including the time, participants, and their accomplishments. By recapitulating the goals, history, and accomplishments of our fathers, Lincoln hands the past on to his audience to create a new, proud future for their nation. A shared history is yet another point which helps the reader relate to others, and by passing on a legacy, they are forced to work  together in accepting and meeting its challenge. The phenomenon of liberty and truth under a new and hopeful nation is blatantly obvious, â€Å"self-evident† in fact, with no further necessary explanation, according to Jefferson and Lincoln. They wanted to install optimism and strengthen the bond between each and every American so that while creating their own history, they would remain united under one fundamental fact; that they were all Americans. For Jefferson and Lincoln, the creation of our country was the creation of an interwoven community, one which would rise above all others because they were not just neighbors, they were survivors, compatriots, and most of all, kinsmen.