Jet Blue Melt Down Essay Example for Free

Jet Blue Melt Down Essay The technology department at Jet Blue airlines let down the company during the melt down. There were many areas where if the technology department had been on top of its game this melt down would not have been nearly as bad as it was. These range from simple communications problems to issues with lost bags. The first area where technology let down those at Jet Blue was that of not being able to rebook flights on the internet. This was a major problem as because the website did not allow for passengers whose flights had been cancelled to reschedule they had to call agents. The problem here is many of these agents work from home and the system was only capable of handling 650 calls at a time. If the website had been able to allow customers to rebook it would have taken a lot of the load off of these agents. The second issue we have here is the system only allowed for 650 agents to be on the phones at a time. When you consider they have the normal everyday business along with many flights being cancelled causing angry passengers to call in to rebook this problem became magnified. Customer grew angry with the amount of time that they had to remain on hold to rebook flights. The next issue that lingered was that of being able to identify who owned the lost luggage. This system was a simple one as it only took the technology department 24 hours to design a system to locate these passengers and reunite them with their luggage. However, when you are already upset and angry 24 hours is quite a long time. This was an issue that never should have been as it should have been in place prior to this event. Finally we come to the issue of being able to communicate with off duty crews and know their location when rebooking flights. This issue was one that could have been fixed in a simple manner with a system similar to that  which Nextel offers to customer’s walkie talkie options with a gps locator on the phone. To conclude my findings if the technology department had been doing its job prior to these events the problem would not have been nearly as magnified. Through some simple fixes and forward thinking there could have been several areas that would have helped to make managing this event easier from enhanced phone systems to a website with more capabilities for customers to simple gps enable cell phones this problem would not have cost the company upwards of 30 million dollars.

Relationship Between Entrepreneur Human Capital and HR

Relationship Between Entrepreneur Human Capital and HR 1. Introduction 1.2 The research topic In modern economies the majority of firms are small firms, and these firms make a considerable contribution to the development of the socio-economic and political infrastructure (Matlay, 2002). Unfortunately, small firms also have a high failure rate. Fifty to eighty percent fail during the first five years of existence (Baumback, 1988). One of the main reasons for this high failure rate appears to be a lack of emphasis on the management of human resources in small firms (McEvoy, 1984). A range of studies indicate that effective management of human resources is one of the most critical challenges small firms face (e.g., Mazzarol, 2003; Deshpande and Golhar, 1994; Marlow and Patton, 1993; Hornsby and Kuratko, 1990). Especially as it relates to the management of HR issues. Managerial incompetence in handling HR issues is a major source of small firm failure (Dun and Bradstreet, 2001; Baron, 2003; Hornsby and Kuratko, 2003), and the way entrepreneurs handle HR issues in an early stage severely impacts downstream success of business (Cardon and Stevens, 2004). However, Cardon and Stevens (2004) did a literature review on HRM in small and emerging firms and concluded that despite the importance of HR issues to small and emerging firms our understanding about these issues is limited. While we have begun to understand when small firms experience varying levels of HR issues (e.g., Kotter and Sathe, 1978; Rutherford et al, 2003), and what these issues are (e.g., Horsnby and Kuratko, 2003), literature lacks much of the theory necessary to understand the role the entrepreneur plays with regard to HR issues in small firms. Given that entrepreneurs play a dominant role in determining how human resources are managed in small firms (Matlay, 2002; Klaas and Klimchak, 2006), it is likely that certain personal characteristics of entrepreneurs play a more significant role in determining HR issues in small firms. Surprisingly, this relationship has received very little attention in literature. This research study will address this gap in literature by focusing on the relationship between human capital characteristics of the entrepreneur and HR issues in small firms. Particularly, the relationship between prior education and experience of the entrepreneur and HR issues in small firms. Education and experience are generally regarded as key factors influencing small firm survival and development (Storey, 1994), and a range of studies show they are positively related to small firm performance (e.g., XXX). Given that HR issues are the main cause of small firm failure (Dun and Bradstreet, 2001; Baron, 2003; Hornsby and Kuratko, 2003), and that they have a strong negative effect on small firm performance (Cardon and Stevens, 2004), this could imply that somehow education and experience are related to HR issues in small firms. Since we do not know if that is the case, this research study will make a first attempt at getting a better understanding about this relationship. 1.3 The research objective According to Saunders et al. (2003, p.96-98) a research study can be done either to explore, describe or explain a particular phenomenon. They argue that exploratory research is done to seek new insight into a phenomenon, to ask questions and to approach a phenomenon in a new way, that descriptive research is done to get an accurate description of events, situations or persons, and that explanatory research is done to explain the cause and effect relationship between given variables. Malhotra (1996, p.99) argues that in some cases more than one research type (exploratory, descriptive or explanatory) is used in a single study to achieve the objectives. This research study will be of an exploratory nature, as there have been few (if any) attempts in literature at getting a better understanding about the relationship between human capital of the entrepreneur and HR issues in small firms. The objective of this research study is to more precisely define the variables that are in play in this relationship, by making a very first attempt at developing a conceptual framework linking human capital characteristics (education and experience) of the entrepreneur to HR issues in small firms. 1.4 Contribution to the literature The contribution of this research study to the literature is threefold. First, by focusing on HRM in small firms, this research study focuses on a neglected group of firms and responds to several appeals for more research at the intersection of the human resource management and entrepreneurship fields (e.g., Barret and Mayson, 2006; Baron, 2003; Katz et al, 2000; Heneman and Tansky, 2000). Second, by looking at the role human capital of the entrepreneur plays in determining HR issues in small firms, this research study offers a new and different perspective on HR issues in small firms. Last, by making a very first attempt at developing a conceptual framework linking human capital of the entrepreneur to HR issues in small firms, this research study provides a foundation and stimulus for future research into the links between human capital of the entrepreneur and HR issues in small firms. 1.5 Key concepts Bygrave and Hofer (1991, p. 15) argue that â€Å"good science has to begin with good definitions†, and Marlow (2006) states that â€Å"if basic concepts are not clarified or defined, then it becomes extremely difficult to develop coherent and comparable research endeavors that build understanding of a particular field of study†. Therefore key concepts will briefly be explained and defined in order to make sure that the reader fully understands the topics under investigation in this research study. Small firms Storey (1994, p.8) states: â€Å"there is no single, uniformly acceptable, definition of a small firm†, and defining the small firm seems to be complex and somewhat problematic (Wilkinson, 1999). First, there is the issue of size. There is no consensus as to what is actually meant by â€Å"small† with regard to the number of employees in this category. In literature the number of employees in firms classified as small range anywhere from 1 to 500 employees depending upon the study. The same problem exists with various statistical agencies across the world. CBS (Dutch statistics) defines firms having less than 100 employees as small, whereas in the European union Eurostat uses a threshold of 250 employees, and the Small Business Administration in the United States even defines firms with having less than 500 employees as small (Flanagan and Deshpande, 1996). Second, there is also the issue of heterogeneity. Wilkinson (1999) argues that the danger of defining small firms lies in the assumption that there is a homogenous small firm sector and that all small firms within it have similar characteristics. He argues that while size may be a factor, it alone is not sufficient to explain patterns of employment relations, because a variety of influences (both internal and external) explain behavior (Wilkinson, 1999). This is in line with the view of Hornsby and Kuratko (2006). They argue that it is not a case of small versus large firms, as there are small established firms, small start-up firms, and small high growth firms, and these firms vary in ownership based on family ownership, ownership by founder, and some type of privately held stock ownership. Cardon and Stevens (2004) argue that co-joining small firms all into one overall category is problematic as the management needs of established and emerging firms, or firms with 1, 10, 50, 250, a nd 500 employees are significantly different from each other. This makes summarizing and providing generalizations of research findings in literature on small firms somewhat problematic. However, despite the fact that there is no uniformity of approach to defining the small firm, for this research study a practical definition of a small firm is needed. Therefore a small firm is defined as: â€Å"a privately held firm with fewer than 100 employees in which the entrepreneur is responsible for the day-to-day management and decision making in the firm†. Entrepreneur There is an ongoing debate in literature about the differences and similarities between owner-managers and entrepreneurs. According to Carland et al. (1984) the critical factor that distinguishes entrepreneurs from owner-managers is innovation. They argue that entrepreneurs are characterized by a preference for creating activity, manifested by some innovative combination of resources for profit, and that owner-managers establish and manage a business for the principal purpose of furthering personal goals. In line with this Freel and Robson (2004) state that entrepreneurs initiate change with the aim of challenging the status quo whilst maximizing profit and generating new employment, and that owner-managers focus on firm durability and sustainability, limiting operational reach of the firm, either because of market constraints or by personal choice (Freel and Robson, 2004 as cited in Marlow, 2006). However, this research study will make no distinction between an â€Å"owner-manager† or an â€Å"entrepreneur†. The most important characteristic for this research study is the dominant role the individual plays in the firm, and not whether the individual is engaged in innovative activities or not. Given that both terms represent an individual generally solely responsible for the day-to-day management and decision making in the firm (Cooper et al, 1994), this research study will treat them the same, but uses the term ‘entrepreneur to address this individual. This research study defines the entrepreneur as: â€Å"an individual who independently owns a small firm and is responsible for the day-to-day management and decision making in the firm†. Human capital Human capital can be explained as the skills and knowledge gained by a worker through education and experience. Human capital theory (Becker, 1964) is based on the idea that people acquire individual resources to increase or enhance their productivity, and that these acquisitions are related to prior education or training, as well as prior work experiences (Brush and Manolova, 2004). In this research study the focus is on human capital of the entrepreneur and how it influences the day-to-day management and decision making in the firm. Education In this research study education is defined as: â€Å"formal college education, together with received specialized training†. Training is defined as: â€Å"†¦the process by which managers acquire the knowledge and skills related to their work requirements by formal, structured or guided means† (Deloitte, Haskins, and Sells, 1989, p.3). Experience According to Lee and Tsang (2001) experience consists of three main components; entrepreneurial, industrial and managerial. Entrepreneurial experience refers to â€Å"the number of previous new venture involvements and the level of the management role played in such ventures† (Stuart and Abetti, 1990, p. 151 as cited in Lee and Tsang, 2001). Industrial experience refers to experience in the industry the firm is in, and managerial experience is the total experience in management regardless of the industry (Lee and Tsang, 2001). However, for this research study experience will not be divided into three components. In this research study experience is defined as: â€Å"accumulated knowledge of practical matters in the past† (Wikipedia). Human resource management (HRM) Storey (2001) states there is considerable confusion among researchers whether HRM â€Å"†¦is a generic term, simply denoting any approach to employment management†¦(or) as one specific and arguably minority form of approach to employment management† (Storey, 2001 as cited in Marlow, 2006). This confusion becomes clear from the many explanations and definitions of HRM in literature. For example, Bratton and Gold define HRM as â€Å"the part of the management process that specializes in the management of people in work organizations. HRM emphasizes that employees are critical to achieving sustainable competitive advantage, that human resources practices need to be integrated with the corporate strategy, and that human resource specialists help organizational controllers to meet both efficiency and equity objectives† (Bratton and Gold, 1999). Armstrong defines HRM as â€Å" the strategic and coherent approach to the management of an organizations most valued as sets the people working there who individually and collectively contribute to the achievement of the objectives of the business† (Armstrong, 2006). Boselie states HRM â€Å"involves management decisions related to policies and practices which together shape the employment relationship and are aimed at achieving individual, organizational, and societal goals† (Boselie, 2002). And last, Schermerhorn (2001) defines HRM as â€Å"the process of attracting, developing, and maintaining a talented and energetic workforce to support organizational mission, objectives, and strategies†. In this research study HRM is considered a generic term, simply denoting any approach to the management of employees, and therefore a practical definition of human resource management is needed. Schermerhorns definition of HRM is the most practical, and fits best with the informal, flexible, and ad hoc approaches associated with HRM in small firms. Therefore HRM is defined as: â€Å"the process of attracting, developing, and maintaining a talented and energetic workforce to support organizational mission, objectives, and strategies† (Schermerhorn, 2001, p2400). HRM activities and HRM issues Rutherford et al. ( 2003) argue that in literature the distinction between HRM issues and activities is not always clear. Therefore it is important to define what is meant by HRM issues and what is meant by HRM activities. Rutherford et al. (2003) define HRM issues as â€Å"people-related issues or concerns perceived by the entrepreneur or managers in the firm† and HRM activities as â€Å"specific human resource management practices used by the firm†. They explain the difference by saying: â€Å"HRM activities are (formal) practices that are put in place to deal with HRM issues† (Rutherford et al, 2003). Guest et al. (2004) make a further distinction within HRM activities between HR practices and HR techniques. They argue that for every HR practice (e.g., â€Å"recruitment†), there are several different techniques (e.g., â€Å"newspaper ads†, â€Å"online ads†, â€Å"head hunters† etc.), or for example (e.g., â€Å"selection†), and (e.g., â€Å"interviews†, â€Å"assessment centers† etc.). This research study follows the definitions of HRM activities and issues by Rutherford et al. (2003), and acknowledges the distinction within HRM activities between HR practices and HR techniques as described by Guest et al. (2004). 1.5 Main research question and sub questions In order to be able to complete the research objective as stated in paragraph 1.3, the main research question and several sub questions have been formulated. The main research question states: How is human capital of the entrepreneur related to HR issues in small firms? In order to be able to answer the main research question, several sub questions have been formulated: How do HR practices and techniques differ between entrepreneurs with varying levels of human capital? How do HR issues differ between entrepreneurs with varying levels of human capital? How does the perceived importance of HRM and HRM issues differ between entrepreneurs with varying levels of human capital? 1.6 Conceptual model Although this is an exploratory research study, some variables have been identified in literature that could play a significant role in explaining the relationship between human capital of the entrepreneur and HR issues in small firms. These variables are shown in this preliminary conceptual model This research study builds upon ‘upper echelon theory and ‘human capital theory to explore the relationship between human capital characteristics of the entrepreneur and HRM issues in small firms. Upper echelon theory (Hambrick and Mayson, 1984) states that everything that goes on in a firm is a reflection of its top managers. It found that the nature of managerial processes and organizational outcomes are partially predicted by managerial background characteristics of its top managers. While originally applied to large firms, this theory seems to be even more applicable to small firms, given that small firms are generally build around the entrepreneur who is often primarily responsible for management and decision-making in small firms (Cooper et al, 1994). Therefore the entrepreneur can be seen as the upper echelon in small firms. Human capital theory (Becker, 1964) states that people acquire individual resources to increase or enhance their productivity, and that these acquisitions are related to prior education or training, as well as prior work experiences (Brush and Manolova, 2004). Cooper et al. (1994) argue that education is presumably related to knowledge, skills, problem-solving ability, discipline, motivation, and self-confidence, and it enables owner-managers to cope with problems and thereby be more successful. In line with this Lee and Tsang (2001) argue that in general education has a positive effect on the growth of the firm, because education equips an individual with the analytical and technical skills essential to managing a business. Furthermore, according to Cooper et al. (1994) owner-managers who have started or managed a firm prior to launching the current firm would perform better. They argue that prior experience would better prepare them for the wide variety of problems confronting new firms. Within small firms human capital theory is concerned with the knowledge and capabilities of entrepreneurs acquired through education and experience, which influences the way these firms are managed. With regard to HRM in small firm, prior studies indicat e that human capital characteristics impact the nature of HR practices and techniques in small firms (e.g., Mazzarol, 2003; Maes et al, 2004; De Winne and Sels, 2006). Link A B The presumed direct link between human capital and HRM issues is based on findings by Tocher and Rutherford (2009). They found that entrepreneurs with more human capital (higher educated and experienced) were more likely to perceive HRM issues as their firms most critical concern. Whether these firms actually experienced HRM issues or that it was only the perception of the entrepreneur remains unclear. However, given that results in this research study come from the individual lived experiences of entrepreneurs, their perception of HRM issues in their firm must be regarded as ‘the truth, and therefore a direct link might exist. Link A B C Based on the link A B, it might be the case that entrepreneurs perceive that they have a lot of HRM issues, and that as a result they implement more HRM practices and techniques (reactive). Link A C B There is evidence that human capital characteristics of the entrepreneur impacts the nature of HR policy and practice within small firms (Mazzarol, 2003; Maes et al, 2004; De Winne and Sels, 2006). It might also be expected that human capital equips entrepreneurs with knowledge about a range of HRM practices and techniques, which they will put in place in order to avoid or overcome HRM issues. It is expected that more use of HRM practices and techniques leads to less HRM issues. Link A D C B It is expected that more human capital makes entrepreneurs more aware of the value and importance of HRM and HRM issues to small firms. If entrepreneurs acknowledge the importance of both HRM and HRM issues to their firm, it is expected that they will put more emphasis on HRM and implement a range of HRM practices and techniques pro-active rather than reactive in order to avoid HRM issues. This is expected to lead to less HRM issues. 1.7 Methodology This exploratory research study uses a two-tailed multiple case study method design. Cases were divided into two groups of extremes. One group with two cases of highly educated and experienced entrepreneurs, and one group with two cases of low educated entrepreneurs with limited or no experience. This two-tailed multiple-case study method makes it possible to use direct replication of findings within the two groups, and also to find possible contrasting situations between the two groups. For this research study interviews are chosen to acquire case study evidence, following the general interview approach by Patton (2002). In this approach topics and issues to be covered are specified in advance in an outline form, and the interviewer decides the sequence and wording of questions in the course of the interview. For this research study I have taken several steps before I started doing case studies in order to be well prepared. The steps taken were: Extensive literature review on the topics under investigation Two interviews with entrepreneurship experts to get a better understanding about the research topics from a practitioner point of view The design of a case study protocol Conducting a pilot case study A total of four entrepreneurs (two in each group of extremes) actively involved in running their business were selected via non-probability sampling using the REACH database. The entrepreneurs were first contacted via a generic email, and later after being selected by telephone to make the appointment. The interviews were held face-to-face at the offices of the entrepreneurs, at convenient times, in silent and comfortable rooms. The interviews were tape recorded. In order to be able to triangulate data, I also interviewed an expert on human resource management and human resource issues in small firms. The interview was held in exactly the same way as with the entrepreneurs. 1.8 Thesis outline In order to be able to answer the main research question, the sub questions, and to meet the objective of this research study, this research study will first look at relevant literature and theories in chapter two. In chapter three the methodology used in this research study will be presented and explained. Chapter four shows the results and within case analyses of the four case studies and of the interview with the expert. In chapter five these results will be analyzed using cross case analyses. And finally chapter 6 will contain the conclusion, limitations, and implications of this research study 2. literature review There is an abundance of literature on HRM in general. Therefore it would be impossible to do a complete literature review on HRM within the time constraints given for this research study. Since the real issue discussed in this research study is the relationship between human capital of the entrepreneur and HR issues in small firms, only prior research that is relevant from this standpoint will be discussed. It must be noted that due to definitional problems in literature on both small firms and HRM, providing generalizations of research findings is somewhat problematic. However, given that all researchers in the field are confronted with these definitional problems, I follow the approach of DAmboise and Muldowney (1988). They reviewed all studies and papers in which the author â€Å"claimed† to be writing about small firms or any variation thereof (e.g., entrepreneurial firm, SME). In this review of the literature, I do the same. 2.1 HRM in small firms While there is an abundance of literature on HRM, the majority is based on HRM in large firms (Wilkinson, 1999). Heneman et al. (2000) reviewed over 400 articles on HRM and found that between 1984 and 1999 only129 empirical studies focused specifically on HRM in smaller firms. Only 17 of these studies applied quantitative methods to analyze results. According to them â€Å"the literature appears to be rich in prescriptions, limited in sound descriptive surveys, and sparse in analytical research†. Similarly, Hornsby and Kuratko (2003) found that â€Å"in spite of the considerable volume and diversity of HRM research, relatively little is understood regarding the HRM-related needs, practices, behaviors, and outcomes of smaller ventures†. More recently, DeKok and Den Hartog (2006) stated that even though research on HRM in small firms has increased lately, the majority of researchers still tends to ignore small firms. Heneman et al. (2000) argue that â€Å"the deficiency of research regarding HRM in small firms is problematic for theory, research, and practice†. When looking at literature on HRM in small firms, it seems that for long it has polarized into the ‘small is beautiful or ‘bleak house perspective (Wilkinson, 1999). According to Wilkinson (1999) the ‘small is beautiful scenario facilitates close and harmonious working relationships with good communication, greater flexibility, and low levels of conflict, and in the ‘bleak house scenario firms are dictatorially run with employees suffering from poor working conditions (Wilkinson, 1999). However, according to Ram (1991, as cited in Wilkinson, 1999) â€Å"workplace relations in SMEs may be ‘complex, informal and contradictory rather than simply either harmonious or autocratic†. Indeed, by now we know that â€Å"small firms are complex, varied, and influenced by a range of factors† (Loan-Clarke et al. 1999; Carrol et al. 1999; Wagar, 1998; Mazzarol, 2003, as cited in Kotey and Sheridan, 2004). A number of studies indicate that small firms are characterized by informal, flexible and ad hoc approaches to HRM. Barret et al. (2007) explain this by saying: â€Å"the practices used to recruit, select, manage and appraise employees performance are not written down (for example, a list of skills and qualifications for each job), regularly applied (for example, yearly performance reviews) or guaranteed they take place (for example, employer sponsored training)†. For example, Hornsby and Kuratko (1990) studied 247 smaller firms in order to establish the progress in developing HRM practices and policies in small firms. They found that firms with less than 50 employees had very little formal HRM practices in place, and similar HRM practices were found in firms with 50 to 100 employees and firms with 100 to 150 employees. A little over a decade later Hornsby and Kuratko (2003) did a replication and an extension of their 1990 study and found evidence that suggests that human reso urce management practices in small firms in all three size categories has generally stagnated and even regressed in some areas over the decade. Similarly, Kotey and Slade (2005) conducted a survey of 371 small growing firms in Australia in order to establish the rate of adoption of formal HRM practices with increasing firm size. Their results showed that micro and small firms are indeed characterized by informal HRM practices, but the adoption of formal HRM practices increased with firm size with a move toward formal practices early in the growth process. In contrast, there are also studies showing there is a greater level of sophistication of HRM practices in small firms than would be expected. However, it must be noted that these results are often derived from case studies with very small samples. For example, De Kok and Uhlaner (2001) studied 16 firms with between 10 and 41 employees and found that some of these firms used HRM practices that were more formal than expected. In line with this Duberley and Walley (1995) did a comparative case-study with sixteen organizations in the United Kingdom to study the extent to which HRM has been adopted in small firms. Although the majority of the studied firms (13) did not adopt a strategic approach towards HRM with an integrated set of policies related to corporate strategy, they found that three of the firms did indeed approximate quite closely to the model of strategic HRM. Barret et al. (2007) state that while an informal and ad hoc approach to HRM may work for some small firms, in periods of growth the sustainability of that approach can be problematic. In line with this Arthur (1995) states that if growth is to be sustained, formal HRM practices and policies are necessary to cope with the increasing complexity as a result of greater number of employees. A study by Kotey and Slade (2005) on the rate of adoption of formal human resource management practices in 371 small growing firms in Australia indicated a move toward hierarchical structures, an increase in documentation, and more administrative processes as the firm grew. Similar results were found by Barret and Mayson (2007) when they conducted a survey of 600 small Australian firms. Their analysis showed that growth-oriented small firms were more likely to use formal HRM practices than non-growth small firms. Roberts, Sawbridge, and Bamber (1992, as cited in Wilkinson, 1999) explain this by saying : â€Å"when a firm employs more than 20 staff, the limits of informality become apparent: informal networks of recruitment dry up; informal styles of management communication are stretched; and ad hoc responses to personnel issues create problems†. In line with this Jennings and Beaver (1997, as cited in Bartram, 2005) state that when the entrepreneur becomes over-extended because the firm has grown above a certain size, the management of human resources needs to be professionalized and delegated. However, there are also researchers like Wilkinson (1999) and Welbourne and Cyr (1999) who state that putting an emphasis on formal rules and procedures in small firms is outdated, because entrepreneurs operate in an environment where they have to make rapid decisions in order to be able to respond to market changes. They argue that ‘bureaucratic HRM may reduce flexibility and increase firm inertia. Similarly, Hill and Stewart (1999, as cited in De Kok, 2003) argue that small firms should be more flexible and informal to be able to cope with higher levels of environmental uncertainty. 2.2 HRM activities in small firms According to Barret and Mayson (2007) the most commonly found HRM activities in small firms reflect operational needs and pragmatic concerns. For example, record keeping, staffing activities (recruitment and selection), and to a lesser extent motivation and retention activities (compensation and reward practices). Cassel et al. (2002) conducted an empirical study on HRM activities in small and medium sized enterprises (SMEs), and found that there is a considerable diversity amongst SMEs in relation to their use of HR practices and techniques. They stated it appeared that â€Å"key managers within SMEs, rather than taking a coherent, strategy based approach to the implementation of HRM, are taking a more ‘pick and mix contingency approach†. â€Å"Which practices are chosen, and the extent to which they are used and formalized is based on a number of characteristics about the SME and the current business climate within which they find themselves† (Cassel et. Al, 200 2). Although there is no generally excepted list of HR practices and techniques used by smaller firms, attempts have been made to identify practices and techniques commonly used in smaller firms. For example, McEvoy (1984) studied small business personnel practices in 84 small businesses with 25 to 250 employees located near a Midwest metropolitan area. A thirty-six item questionnaire was administered and filled in by an interviewer interviewing the person responsible for HRM in the firm. The questions focused on the usage of HRM practices like HRM structures, policy and planning, staffing, performance evaluation, employee motivation, job satisfaction and turnover, and compensation and unionization. Important findings relevant for this research study are that when firms reached an average of 73 employees the management of human resources shifted from one person (often the entrepreneur) to a newly formed separate personnel department. About 80% of the firms sampled used written personnel

Ryanair: PESTEL and Porters Five Analysis

Ryanair: PESTEL and Porters Five Analysis 1.0 Introduction Ryanair is an Ireland based airline company and it involved in commercial aviation business since 1986, operating scheduled passenger airlines, serving short haul and point to point routes primarily between Ireland, Britain and Europe. It is the pioneers of low fare airline in Europe and even until now Ryanair is the only airline that offers cheapest air fare to passengers travel around Europe. Micheal OLeary is the CEO of Ryanair, holds 4.6% stake of the company, His dynamic low fare strategies along with the evolution of Ryanair have had led to burst of many budget airlines and some of them had been bought by Ryaniar around Europe, simply because of their inability to compete with Ryanair. European aviation industry is wider, but squeezed with many incumbents that are operating both short haul and long haul routes. As European short haul airline market segment is price sensitive, Ryanair handles no frills strategy and charges lowest price from its customers. In order to obtain bett er margin in the low fare demanding market Ryanair held in a position of cost leader and fundamental low fare strategy supports for rapid growth of its business. The strategic capabilities underpinned by its unique resources and core competences are the preliminary constituents for Ryanair to be a cost leader and offer low fares. This will be explained in detail under below topics about the feasibility of various strategic circumstances. 2.0 External Analysis: The analysis of Macro-environment explores core cause of factor; assess the nature of effects and immediacy. PESTEL analysis has been undertaken to evaluate the external environment of Ryanair. 2.1 PESTEL Analysis: (P)olitical/(L)egal factors: Preferential Treatment of home base airlines in some countries, at the same time they prevent thriving foreign companies and inflict them in more operational cost. Increased terrorists activities have prompted airline industry to tighten security measures and alleged terrorist plots will adversely affect flight turn-around time. Detrimental mental effects are also possible due to any terrorists plots targeted on Ryanair. The rapidly changing government rules and regulations are an inevitable legal factor for Ryanair. This will be discussed in detail under suppliers bargaining power. (E)conomic factors: The instability in fuel price cause major problem for airline industry. If they do not hedge, the fuel price hike is inevitable and they need to find cost savings in other spheres of business when the fuel price is soared. Ryanair was especially more vulnerable to fuel price rises in the past. For example: In the last quarter of 2008, when the fuel price was in its hike, Ryanair reported losses of $130 million dollar and it blamed a 71% increase in the price paid for fuel during the quarter due to the abnormal surge of fuel price of more than $ 1,100 a ton (K, Capel. Airline. The Telegraph, Feb 2 2009.). (E)nvironmental factors: As the world is heading towards more and more greener, all governments taking appropriate measures to control greenhouse gases from carbon emission which would lead to catastrophic human and economic consequences. Ryanair has network virtually in all European countries, so it is more vulnerable to all EU environmental rules and regulations. The mounting pressure on EU laws to tax aviation fuel and anticipated charges on environmental pollution by airlines would have direct impact to Ryanair. (T)echnological factors: Technological factors such as internet, innovative developments in telecommunications such as video conferencing, instant messaging, web conferencing etc. will mean less need for travel, especially on scenarios such as business meetings. 3.0 Industry environment: 3.1 Segmentation and positioning: Ryanair is positioned in the lowest fare segment and has least customer experience among other budget airlines in the European market. The market segment for its rivalries is broader with larger geographical area including operations to main airports, whereas Ryanairs networks are limited only to low cost secondary airports with smaller geographical area. Ryanair predominantly focuses on only people who are desperate for low fare and it has no separate segment for people who want luxury service or business class. Despite, Ryanairs continuous traffic growth, shows that the people wanting low fare in European market are tremendous and European market is for the low fare short-haul carriers. Perhaps, high air fare carriers neither cope up nor sustain against low fare carriers. The competitive position is deeply elaborated in section 3.2. 3.2 Porters five forces: Industry environment analysis figures out the foreseeing competitive pressure in European aviation and the profitability of the industry likely to be in future. It explores the magnitude impact of Threat of substitutes, Threat of Entrants, Rivalries in European market, bargaining power of supplier and bargaining power of customers. Rivalries: The high rivalry impacts for Ryanair are from Easy Jet, Air Lingus, Lufthansa, Iberia, SAS, Airfrance, KLM and Air Lingus. Few airlines (Easy Jet, Air lingus and Lufthansa) the first three of them are roughly more or less equal in size to Ryanair and some of their performances are even better in terms of customer service. This is considered as a significant threat to Ryanair. Despite, among all short-haul carriers Ryanair is the cost leader with having highest market share in the European market. Although Ryanair has firmly improving its competitive advantage, the core strategy of the company is to maintain the operational cost as minimum and offer low fare to customers, which is virtually same among its rivalries, but the outstanding scenario is Ryanair constantly creates new paths to bring down the operational cost . Threat of New Entrants: The short haul no frill airline market is a highly profitable business in Europe so far, while long haul market in Europe is experiencing huge losses like Air Lingus long haul airlines. So, the business scope in the short-haul market may attract new entrants. Although, European airline industry is de-regulated and open for both national and international companies, Airline business is not something like setting up a dot.com with minimum capital in anticipated profit. Hefty capital investment is required to acquire route, fleet, set up flight maintenance centre, building infrastructure etc in order to establish an operation. Industry knowledge and time associated with entry are significant for companies that want to start short haul airline business in Europe from other industries such as tourism and Rail way etc, but for airline companies from some other market like Asia, South America, North America and Australia can trace out the European market in some extent and such huge investm ents also may be affordable for them. Threat of substitutes: The threat of substitute is possible threat for Ryanairs traffic growth as passengers tendency to switch to other means of transport such as buses, trains and cruise. This kind of threat has medium effect over Ryanair, despite, the ubiquity of other means of transport to travel across European countries. Particularly rapid growth of railway network is considered to be a most influential substitute for short haul air travel across Europe. Congestion in airports and difficulties (such as boarding, airport journey) involved in air travel could cause passengers more likely to choose railway. Some government like U.K is substantially funding for the expansion of high-speed rail networks to and from Europe, especially to curb short haul carriers through heavier taxation due to the pressure arising from the environmental groups to cut down carbon emission by domestic aviation. The government intervention to establish better rail links in other countries such as France, Germany and the Nethe rlands is more vulnerable to Ryanairs routes in those countries (Dan Milmo 2009. The Guardian. 5th Aug). Bargaining power of supplier: Aircraft Supplier: In aviation Boeing and Airbus plays duopoly in manufacturing passenger aircrafts. Boeing is the main aircraft supplier for Ryanair, since its establishment. In terms of supplier bargaining power, Ryanair holds significant scale of power over Boeing, as it can easily switch to Airbus anytime in-case of high price charged by Boeing. The recent Micheal O Learys announcement of negotiation with Air Lingus evidenced the high bargaining power over its Aircraft supplier (Sarah Arnott., 2008. Ryanair looks to order 400 aircraft in plans for massive expansion. The Independent, 8th Aug.). Airports: The enforcement of new rules and regulations by airport authorities are inevitable, eventually they have more control on their bases with both short haul and long carriers airlines operating in any government airports. Ryanair has been either strongly protesting or recklessly withdrawing and switching its routes to alternative airports, at bases wherever it is experiencing significant problems. For example: Recently Manchester Airports Group refused to bring down its prices, which resulted Ryanair to pull nine out of its ten Manchester routes(Sarah Arnott., 2009. Price dispute sees Ryanair cut nearly all Manchester flights. The Independent, 18th Aug.). So, Ryanair can switch its destinations easily in case of its bargain does not take lead. Ryanair holds substantial power in the other spheres of suppliers such as staff recruitment agency, food providers and ancillary product suppliers etc due to substantial availability of those kind of suppliers in the market. Bargaining power of customer: European market is almost saturated with many airline companies including premium services to economy classes. Bargaining power of customers is high as low budget airline a commodity today and presence of more substitutes in European market. Ryanair had shrunken the bargaining leverage to its bottom with no other airlines could possibly offer such low fares, as the result that Ryanair is having extra-ordinary performance in traffic growth consistently year by year, but this growth is uncertain if Ryanair pushes its fare up. More people travelling on Ryanair, because they like the fare and can easily afford it. 3.3 Value Networks and Business Partners: It is necessary to analyse value creating areas in Ryanairs Industry value chain, which consolidates it competitive advantage by delivering those precious values to customers. According to porter, 1985, Value chain of any organization comprises of two activities, primary and secondary activities. Primary activities are directly concerned with delivery of service and that includes inbound logistics, operation, outbound logistics, marketing, sales and services. The support activities include administrative infrastructure management, human resource management, technology and procurement. Inbound logistics: Stock control of Food, beverages and Ancillary sale items: Although, Ryanair is a no frills airline, it is making huge profit through the sales of food, beverages and Ancillary items. Ryanair manages strong relationship with various foods and beverages suppliers, in-order to receive quality standard goods and on time delivery, which adds value throughout its value chain. Route selection and airport base: Ryanair only selects low cost route with the anticipation of traffic growth. Ryanair has strong relationship with various airport authorities around Europe, thus they provide subsidies in exchange for high traffic and low fares. Jet fuel: This is the most significant input that Ryanair has to scrutinize, as jet fuel contributes around half of the operating cost. Well hedged contracts will minimise cost, so recent hedging arrangements adds value to get control of fuel cost in some extent. Aircrafts and Maintenance: Deployment of single type aircraft Boeing 737-800. Operation: Ryanairs operational activities includes passenger check-In, loading ancillary and catering items in the flights, baggage check-In, Hospitality, In-flight services and daily flight operations. Contemporary online check-in system reduces cost associated with staff and avoids passenger queues in airports, thus it provides convenient journey for passengers. This adds value by enabling quick turnover of flights and prompt minimum waiting time of flights at airports. Additionally, Ryanair has contractors at certain airports for ticketing, passengers and aircraft handling (Includes loading various goods into aircraft) as well as for engine repairs and heavy maintenance at competitive rates. (Ryanair, 2004. Annual Report 2008-2009. [Online]. Available at: http://www.ryanair.com/doc/investor/2009/Annual_report_2009_web.pdf. [Accessed 10 Jan, 2010) This third party contracts are more cost-efficient than Ryanair perform these activities itself. Productivity-based incentives, this includes sales bonuses for on-board sale of products by flight attendance to increase ancillary revenue through reward mechanism and pilots are remunerated based on number of hours or sectors flown, which c uts unnecessary staff cost. Ryanair facilitate the usage of onboard mobile and electronic device for its passengers in order to add value for customers. Marketing, Sales, Services and Outbound Logistics: Ryanair advertise its seasonal fares and other company related commercial advertisements on its fleet with zero advertisement costs. Furthermore special ticket offers are being advertised on its website to promote sales. In order to curb substantial operational cost and tackle high number of booking, Ryanair has introduced new Online Reservation System in addition to the host system. The system new has been provided and maintained by an outside contractor, Navaitire. (Ryanair, 2004. Annual Report 2008-2009. [Online]. Available at: http://www.ryanair.com/doc/investor/2009/Annual_report_2009_web.pdf. [Accessed 5, Jan, 2010) It adds value for passengers by increasing system speed and avoid Ryanair is being on exposure to the risk of resolving system failure issues. There is no sales agent commission adds value on passengers fare and it adds value in terms of the distribution cost aggregate nearly to zero and convenient journey for passengers. Online baggage claiming system for baggage l ost passengers, which adds value to passengers as it is an easy way to claim their bags. 4.0 Resources and Capabilities: 4.1 Resources: Resources allocation and capabilities development are the source to gain competitive advantage for a company, while the market and environment establish constraints and pressures. Resources of Ryanair are basically what it holds as productive assets and can be differentiated into three different forms, tangible, intangible and human resources. Capabilities are what it can achieve by exploiting opportunities in the external environment and efficient deployment of its unique resources that exist within the company to achieve competitive advantage. Tangible Resource: Ryanair had 181 aircrafts in operation as of March, 21, 2009, among which 109 aircrafts were funded by The Export and Import Bank, 43 aircrafts were in operating lease, 20 of the aircraft in the fleet were treated as financially leased by Japanese operating leases with call options, 6 of the aircraft in the fleet were encumbered with commercial debt financing and three remaining aircrafts are entirely owned by Ryanair without any finance related encumbrances. Ryanair also owns and operates six Boeing 737-800 flight simulators for the purpose of pilot training. All the above are long-lived assets virtually all of them were aircraft totalled to 3.6 billion Euros. [Ryanair, 2004. Annual Report 2008-2009. [Online]. Available at: http://www.ryanair.com/doc/investor/2009/Annual_report_2009_web.pdf. [Accessed 4 Jan 2009]. Even though many aircraft are encumbrances, ownership accompanied with the bank loan gives greater independency and financially the cost involved in leasing arrangements i s higher than being owner of aircraft. In addition to aircraft, administration offices in Dublin and East Midlands Airport, simulator and training centres are entirely owned by Ryanair. It also has leasehold property in eight airports for the purpose of flight maintenance and an office building in Dublin Airport Business Park. The recent investment of 702 million Euros for the purchase of property, plant and equipment in 2008 is remarkable. [Ryanair, 2004. Annual Report 2008-2009. [Online]. Available at: http://www.ryanair.com/doc/investor/2009/Annual_report_2009_web.pdf. [Accessed 4 Jan 2009]. Ryanair serves over 1000 routes across Europe and Morocco from 40 airport bases, which is considered to be high in numbers compare to its rivalries. (http://www.ryanair.com/doc/investor/2010/q3_2010_doc.pdf, accessed on: 15th Jan 2010). Airport bases served by Ryanair are ultimately considered as strategic assets due to its low cost. Financial Resources: The huge cash reserves held in the company of over 2.5 billion Euros will allow having abundant cash flow for its operation. Cash pile would financially leverage to take strategic decision in future expansion of business. Ryanair holds 93.15 million Euros worth of available-for-sale financial assets, which are not considered as an investment in an associate company due to insufficient power of Ryanair to influence over the investee. And also, Ryanair is the biggest investor on its rivalry Aer Lingus with the acquired stake of 29.8% of Aer Linguss share capital through private acquisition with the total aggregate cost of 407.2 million Euros. Ryanairs long term debt totalled to 2398.40 million as of 2009 annual report, which is an increase of 131.9 million from 2008 annual report. The latest debt increase is primarily due to financing of new aircraft, which will be delivered within two years as per the schedule. [Ryanair, 2004. Annual Report 2008-2009. [Online]. Available at: http://www.ryanair.com/doc/investor/2009/Annual_report_2009_web.pdf. [Accessed 4 Jan 2009]. Intangible resources: Ryanairs climbing traffic growth and established brand name are most consolidated and valuable intangible assets for the company that embedded in its relentlessly flowing low fare strategies to make huge profit. In terms of operational prospective, minimum aircraft age of 3.77 years average age of all its Boeing 737-800s is a unique intangible asset and no aircraft is more than 9 years old. The company also holds considerable intangible asset of landing rights that flows future benefit into the company. Human Resources: There are 6616 staffs working at Ryanair as of March 2009, this includes 1041 additional experienced pilots contracted from employment agencies to satisfy short term pilot requirements. The employees figure is constantly increasing year by year due to rapid expansion of the company. Ryanairs top management comprises of eight boards of directors, all of them are having more than 7 years of experience with the company and their remuneration including different share options scheme are available and based on experience, as well as their job position. David Bonderman, Chairman of the Board and Director, who has served more than 13 years with the company. CEO and Director of Ryanair, Micheal OLeary is the most valuable human resources in the company and he has been successfully leading the company for nearly two decades, as CEO since 1994. (Ryanair, 2004. Annual Report 2008-2009. [Online]. Available at: http://www.ryanair.com/doc/investor/2009/Annual_report_2009_web.pdf. [Accessed 20 Jan, 2010]). 4.2 Capabilities: In this section, we will discuss about the special knowledge and a skill possessed by Ryanair in order to gain competitive advantage and the key success factors that positioned the company as cost leader. The companys innovative pioneer strategies to keep the operating cost low and its ability to carrying passengers at lowest fare demand are the special capabilities it posses. Apart from these, the table below contains Ryanairs last three years operational data up to March 2009, which will demonstrate the operational capabilities during that period. The average yield per revenue passenger mile and average yield per available seat miles are decreased in 2009 due to the intense competition and further reduction of average booked passenger fare by approximately 4 Euros compare to the previous years. Yield management is crucial for airlines as the gross profit of the company mainly depends on it, so achieving better yield would perhaps maximise Ryanairs profit. The fares of Ryanair need to be continuously monitored in a way that would create demand, at the same time that would maximise companys profit. Ryanair has only little control over the fuel fluctuations like many other airlines, so increase in fuel cost is an unavoidable increase in operating expenses. The remarkable factor is the recent fuel hedging arrangements increased Ryanairs power to some extent to influence those cost aroused due to high fuel price. The next factor is cost per available seat miles, which is operating cost by available seat miles. This is one of the mo st success factors that gain competitive advantage for Ryanair, as it always being low compared to all other short haul airlines in Europe. In the table above, the increase in the operating cost in 2009 is mainly due to the rise in fuel cost. The low fare strategy is embedded in the companys capability and it is most valuable for the company by creating demand for its service. The constantly increasing load factors year by year, while the average booked passenger fare is decreasing indicates that the unique capability of Ryanair to make the traffic grow and how well it filling its seats through creating demand by stretching its fare to lowest possible. So the increased load factor is mainly due to decrease in the fares. One of the main mottos of companys CEO, Micheal OLearys is to maximise profit through selling ancillary products. Ryanair is the highest ancillary revenue making airline in Europe, which add extra profit for the company. Motivating cabin crews through commissions to sell ancillary product, consistently increasing and introducing various ancillary products and having many commission based related business are the main source for ancillary revenue. The number of airport served and average flight utilisation hours are some other measurable capabilities of Ryanair. The best service to the passengers in terms of punctuality of its flights and less baggage missing scenarios are in Top Priorities and it makes competitive advantage for Ryanair in its operation. In fact it has the policy of publishing its customer service statistics every month to show the leads from its competitors. The table below shows that the Ryanairs capability in terms of punctuality, Bags handling and journey completions among its few rivalries. 4.3 Strength and intellectual assets: All routes are point to point rather than transitional. Although it is easy to establish point to point routes for a short haul carrier, it enhances convenient journey to the passengers. Ryanair has entered into fuel hedging arrangements followed by the huge losses on 2008. The unprecedented hedging arrangements will provide substantial protection against fluctuations in fuel prices, generally through forwarding contracts covering certain periods in the future. Ancillary services including non-flight scheduled such as Car hire, Hotels, Travel Insurance, in-flight sales, rail and bus ground transport services in its business model adds extra revenue for the company. Ryanair has direct sales channels; the only way to book ticket nowadays is via the website or via Ryanair direct call centre. It helps to take out sale agents commission and special offers would directly reach the customers without any discrepancies. Ryanair has been deploying Boeing 737-800s, same fleet community in all its routes. The company can save training cost as all staffs are only be trained for one type of aircraft and also saves on maintenance supplies and labour as only one type of parts and skills needed. High seat density of 189 seats per aircraft accommodates more passengers (compare to its older version Boeing 737-200A, which had only 130 seats per aircraft) and it tends to extra revenue for the company. The use of Secondary Airport with frequent transport medium to populated cities for the purpose to keep its airport charges low and for high turnaround times. The well known scattered strategy of no frills such as, free food, drink, and lounges etc 4.5 Weakness: Even though its fares are far cheaper than any other airlines in Europe, it is being severely criticised by many people for its extravagant hidden charges. The basic reason for this criticism is advertising fares without the disclosure of most basic inevitable charges such as, taxes, online check-In or airport check-In charge(which is outrageously costlier than the online check-In), card surcharge other than master card (only possible way to pay as the booking can feasibly done through either website or call centre), administration fee etc Ryanairs deliberate controversial advertisements and statements by its CEO such as charging one pound to use the toilets in flight, are practically generate additional free publicity for the airline, but significantly it depletes brand reputation and it often perceived as bad impression among peoples mind. The poor customer service by its staffs employed and disgrace treatment of passengers by its CEO, Micheal O Leary and the company are misleading companys reputation for not even providing the basic services and rudeness involved in customer query replies are the weakness that embedded in its system. According to the comments analysed from 280 websites, Ryanair came bottom of the ranking with minus 40 points. Poor customer service and extra cost the airline charge for check-in bags are the major complaints. [Lisa Minot, 2008. Sun Air News: Ryanair suffer Over Service. The Sun, 2nd Aug.] The company is heavily addicted for traffic growth and rivalry led in European short haul market. Because of that growth, Ryanair is not able to identify the reputation and loyalty in its brand among passengers. 5.0 Strategic situation: Perhaps, I have mentioned about 2.5 billion cash reserves in its financial resources. It has announced plans of start paying dividend from its cash pile to their shareholder from 2013. (Sarah Arnott, 2010. Ryanair to pay dividend from 2013. The independent, 8th Jan). Instead of paying dividend out of its cash reserves or by using companys profit, it should decide to deploy its cash reserves in its on-holding strategy towards long haul routes. The company will get significant future growth by launching long-haul transatlantic routes. According to CEO, Micheal O Learys statement, if Ryanair introduces long haul routes from Europe to six US destinations, two segments of seat will be offered, one lowest unprecedented economic class and ever high fare business class with extravagant services. This rational strategy will generate huge profit by luring middle economic-class passengers; perhaps transatlantic passengers will want something cheaper in their tickets. The cheapest fare no frill for economic class passengers with onboard sale of everything from breakfast to dinner, beverage to entertainment would create substantial ancillary revenue. In spite the airline destinations must be in populated area or rich cities such as Chicago Midway Airport, Atlanta Hartsfield International Airport and Dallas Fort Worth International Airport etc to fill up business class seats, Otherwise there is no logic in adding business class seats in long haul routes. Alternatively, it can choose rural destinations in US, but the business class passengers firmly transited to populated cities without any delay and inconveniency by having alliance with US luxury short haul carriers. Although, I have mentioned Ryanairs 29.8% stake over Aer Lingus, its first bid in 2006 to acquire entire share capital of Aer Lingus was firstly blocked by European commission on competition grounds and the second bid in 2007 was also failed after the Irish Government (25% stack holder on Aer Lingus) said Ryanair undervalued the company, while the offer totalled  £701 million. So, Ryanair is not yet planned to make any further bid in recent future, rather it aims to boost its cash reserves. [Pilita, C, Vincent, B, 2010. Third Ryanair bid for Aer Lingus unlikely. Financial Times, 7th Jan.] Perhaps, the acquired stakes consolidate its financial position over Aer Lingus for convenient takeover in the future, in case of any failure or the acceptance of further bid by Aer Lingus. In consideration to Ryanairs future growth in the existing market and anticipated transatlantic expansion, it has to press hard for a horizontal integration over Aer Lingus by raising the offer price from its last bid of  £701 million. The acquisition of Aer Lingus is more likely to see tremendous expansion in European market by acquiring market share and implementing low cost operating strategy over it rivalry. In a situation when a competitor disappears in the market, the competition gets ease for some instance. The acquisition also allow Ryanair to get easy access into the transatlantic routes, as Aer Lingus already operating flights to some major airports in the United States such as, Houston (HOU), Houston (IAH), Indianapolis (IND), Columbus (CMH) and San Francisco (SNF) etc 6.0 Strategic Choice: Identification: The first choice what I suggest is Ryanair can expand its market through Related Diversification by the launch of new international routes from Europe to Selected Asian countries, such as India, Malaysia and Singapore. Ryanair will be able to grow its traffic by selecting core destinations such as Mumbai, Bangalore, Goa, Chennai and New Delhi in India, Kualalampur in Malayasia and Singapore. In the other end, Ryanair would be able to cover travellers and tourists from all European countries by setting up transit hubs in selected airports in Europe such as Frankfurt, Madrid, Milan, Glasgow and Dublin (So, flights from the new market will land in those transit hubs and then passengers can reach their end destination by Ryanairs local network flights through transit from these airport) travelling to our selected destinations in Asia, as it already has firm and established operation in Europe. The above selected strategic choice would be demonstrated under Ansoff Strategic Direction Matrix Market/product choices. According to Ansoff Matrix (developed by Igor Ansoff, 1957) the above selected business is launching of new service in new market, so it will be categorized under Diversification. Although, Ryanair has an on-holding plan of introducing transatlantic routes, but not yet lunged, the new strategic choice is to flourish market share in developing nations. The assumed service in those markets is clearly business to consumer type of activity, as Ryanair directly engaged in carrying passengers or providing service directly to the customers. Ryanairs main targeting customer segment in the above three countries are tourists and passengers who are looking for low fares, as well as high fare over luxury service. The differentiations in fares with price premium for passengers perceive it as on luxury segment and without price premium for passengers perceive cost benefit under low fare segment. All the three countries are developing nations with low income, middle class and rich people. Among them, people who afford to travel to Europe are

Ford Motor Company Essay -- essays research papers

It was once said, â€Å"Those who do not study the past are deemed to repeat it.† On the brink of the new 21st century it is important for us at the Ford Motor Company to take a look at our past to see what has worked and what has not in order to set the standards for the automotive industry. It is also imperative to take a close look at what our competitors have done because we can also learn from their mistakes as well as improve on some of their ideas that have worked for them. It is important to realize that the world is ever changing and therefore what people want, and the market for automobiles is changing as well. Therefore we must first take a look into our competitors, and our pasts before we can then begin to look toward the future of the Ford Motor Company in the 21st century. It was a little over one hundred year ago that Henry Ford first came up with his dream to create an automobile that would change the world. Although it was Henry’s dreams and drive for success that lead him to his achievements it was not without the three giants-steel, oil, and transportation, that were the building blocks for the Ford Motor Company. From the beginning he knew that in order to sell his product and make his company a success he would have to be able to appeal to the masses. At this time Ford was not the only man to be in the small but growing automobile industry. There were others such as David Buick, Ransom Olds, and Billy Durant, who were also trying their luck in this new market. At this time owning an automobile was almost impossible unless one was quite wealthy. Although Buick, Olds, and Durant were all producing autos they were all having trouble selling their products because their production costs were too high. These costs were reflected onto their sel ling price, which was very hard to afford for most of the working class. This is what caused their financial troubles and helped Ford move into the market. He understood that in order to make his company a success he would have to make his automobile one that could be afforded by the masses. While the other producers of autos were more concerned with who had the bigger, better, and faster car, Ford had a different focus. His philosophy was: â€Å"I will build a motor car for the great multitude†¦it will be so low in price that no man†¦will be unable to own one.† It was for the next five years, a young Henry Ford d... ... by the Chrysler Corp. The minivan market is still growing because of the capacity that it offers, its affordability, and efficiency. Although at this time the SUV is the fastest growing market, it is risky to put more effort into it due to the fact that the bigger, faster, gas guzzler craze is probably nothing but a craze, especially as we move into a more environmentally safe future. This has been seen before in the early eighties when this same craze took place right before gas prices jumped and the move to a more efficient automobile took place. American car companies were not ready for this and foreign markets became much more popular. In order not to repeat this history, more emphasis should be placed on the development of a new and efficient minivan that will surpass GM and Chrysler. In conclusion, as we move through the beginning of a new century we must first look to our past to learn what has worked and what has not. After doing so, we can then begin to devise our plans that will move us ahead with the changing times. This can, and will be, accomplished as the Ford Motor Company moves back on top of the automotive industry where it started almost 100 years ago.

A Streetcar Named Desire by Tennessee Williams Essay -- Streetcar Desi

A Streetcar Named Desire by Tennessee Williams MITCH: Lies, lies, inside and out, all lies. Referring to the two critical opinions, explore the extent to which the relationship between Mitch and Blanche is based on deception and self deception. Throughout Williams' play an unexpected relationship is developing before us. This is the one formed between Mitch and Blanche. Two very different characters who would appear to have nothing in common but when they dig deeper into each others personalities they find that have shared many past experiences and this gives them a basis for their relationship. However, after realising that Blanche is not the same person that she appears to be, Mitch begins to doubt anything that she has told him in the past. Can the audience blame him, as they know that she has even lied to her own sister. What makes her relationship with Mitch different to that she has with any other person? What makes him so special that she does not feel the need to lie to him? Mitch proposes to Blanche that everything that she has told him is a lie. That the person that he knows her as is make believe. "Lies, lies, inside and out, all lies" (Scene 9), is the phrase used by Mitch to convey his feelings to Blanche. He is right. Blanche had based all her relationships on lies since she had arrived in Stella and Stanley's house. She felt that it was the only way that she would be accepted by her sister and brother in law. She was never expecting to meet such a man as Mitch, but once he did appear she had to continue the deceit with him, to make sure that she did not incriminate herself, as she had already spun so many stories for Stella and Stanley. Mitch is a very weak character. He stays at home... ...and she is not as hard faced as she has seemed throughout the play. All she wanted was to have something to replace what disappeared when she lost Allan. There had obviously been something missing since he died, and that is what Blanche had been searching for, sadly everywhere she looked she only found herself in trouble. Cardullo sees her actions at the Flamingo, not necessarily as prostituting herself, she may not have thought of herself as a prostitute as most people would define it. She was on her mission to find that lost thing, "they got wised up after two or three dates with her," but maybe that was because they did not have the thing that she wanted, and she was just as much for them leaving as they were. Mitch was different however, she wanted him and did not want to lose him. That is why she had to deceive him to make sure that he did not leave.

Business Plan for E-business Essay

ABC Company is an aboriginal products company offering Australian aboriginal artists’ materials and products, such as painting, boomerang and other handicrafts. Based on the internet, ABC Company also provides timely information about Australian aboriginal culture like their history or daily news. It is the responsibility of ABC Company to support the development of indigenous people’s culture and improve their living quality in the same time. The Market ABC is at the forefront in an exciting and growing market. We focus on the market of Australia and extend to the tourists and Australian indigenous culture lovers. Most aboriginal products stores do not supply the sufficient and related knowledge of aboriginal culture. And our special supporting stagey helps communities get $1 from our sales every $100 for the sake of attracting more aboriginal artists enter the business. It is a different point from other current there is no such e-business company like XX operated today. The Organization ABC is owned and operated by our group members. Since our company is operated online, our management team is the group of our four founders. It is founded on the idea that maintaining satisfied customers is essential to the bottom line. With this in mind, our team will be working hard to ensure that all of their customers’ expectations are exceeded in all transactions. To maintain a presence within the art and craft community and close relationships to customers and also our suppliers —–aboriginal people, we will focus more on the professional knowledge of Australian indigenous culture and encourage local communities to join us. Financials The sales growth will be conservative in the first year as when our focus is on the advertisement and make our products well known by potential customers. It is estimated that the sales increase in a 33% phase from second year of business operation. The marketing costs will remain the 10% of total sales. And we may consider company expansion if projected sales met or exceeded our target. 1. Company Summary ABC Company is founded in September of this year in UNSW. The company will offer a variety of products and services of aboriginal culture. In order to have sufficient information and resources of aboriginal culture, we will cooperate with some institutions and communities. For the aspect of products, we will offer aboriginal art such as artefacts and painting which are brought from eBay, institutions such as Tandanya in Adelaide and personnel (Tandanya 2013). Moreover, we will provide aboriginal culture and its history on the website. The resources of those will be picked up from variety of institutions, communities and government’s website. For the first three years, we will focus on the business on the website. Therefore, customers and visitors can experience aboriginal culture on our website 24 hours, seven days a week. When our business is stable, we will expand our services and establish a physical store in Alice Spring. The mission of our company is to become the best platform which spreads aboriginal information and provides products. 1.1. Market Niche In the recent market in Australian, indigenous arts occupy a small part. In the recent years, the sale of aboriginal art is $8m every year, which is equivalent to sale 11 years ago (Rothwell 2013). One reason is that people has few opportunities to engage the aboriginal culture. Moreover, few places have aboriginal arts. Most of arts are sold in the regional institutions and cultural centre, and are offered on few numbers of website. The mission of our company is to be the best platform to provide aboriginal culture and arts. Therefore, we will spread indigenous culture firstly through our website so that more people are familiar with their culture. Moreover, we will offer a variety of products on the website such as gifts and painting. The range of price is from about $50 to thousands of dollars. After getting information of the product, customers could purchase the arts what they are interested in. There are two characteristics of our products. Firstly, we are not only sell aboriginal arts, but share the information and background of each art. Therefore, customers could understand the meaning of it. Secondly, as we stock artwork from institution and artists, the price could be lower than other stores. Therefore, our products have high quality with a lower price. 1.2. Social responsibility of our business There are two main social responsibility of our business: spreading the culture and facilitating the economy. As we share aboriginal culture on our website, more people will familiar with its culture. Therefore, our first social responsibility is to spread aboriginal culture. For example, we will share information about meaning of painting, dancing and their music instead of merely selling products. Culture is a part of fortune for a country. Therefore, it is necessary to prevent it from disappearing. Additionally, we will help some communities and extract $1 from our sales every $100. As we stock some artefacts from communities, it will increase the sales of them. Moreover, we will donate for the community to help it spread aboriginal culture. As a result, it probable creates more job opportunities for aboriginal as more people are interested in its culture. 2. Our service and product Our company will provide a series of services and products on the website. For the aspect of service, we will divide into three stages. In the first stage, we will share information about aboriginal culture and artwork. The profile of artists and their painting also is offered. In this stage, we will focus on spreading the culture of aboriginal. In the next stage, when our business is stable, we will expand our service to day tour that visits physical museum and institution. For example, in South Australia, we will have a day tour to Tandanya to watch a show and have a workshop in Brambuk in Victoria. In our final stage of service, we will offer an opportunity to experience ancient Aboriginal rock art paintings, music, dance and storytelling in Northern Territory (Cultural Tour, 2013). In order to achieve it, we need find more partners with us to organize the planning of travel. For the aspect of our product, we will focus on selling them on our website in the first three years. In the meantime, we will establish a small physical store in Alice Spring. We will offer several products such as artefacts, artwork, crafts, glass and didgeridoos. Every product will attach profile of artist. As we purchase some artefacts and paintings from artists, there will be some unique artworks on our website. Therefore, it is a good choice for gifts to your friends, and good collections for collectors. Moreover, we also have some books about aboriginal culture that will be sold on our website. 3. Market Analysis In recent years, the consumptions of aboriginal culture products (arts, paintings, craft and so on) are decreasing in both Australia domestic and international markets. However, it does not mean that the value of have dropped a bit. ABC Company aims to expand the market size of the indigenous products in Australia markets and international markets by selling indigenous tourism products; in the meantime, increasing the value of indigenous tourism products by spreading the Australia aboriginal culture information online. The Company will market to four primary customers: 1. Tourists. 2. Amateur artists and crafters, including collectors and hobbyists. 3. Professional artists. 4. Businesses, such as architects, graphic designers, or direct mail advertisers. In the meantime, customers who are interested in aboriginal culture are also our potential customers. 3.1. Target market segment strategy 1. Tourists. In general, tourists normally visit the physical stores near the attractions. However, tourists’ purchase amounts are limited to size, material, and there are strict regulations of overseas travelling. Therefore, it is necessary to have partnership between travel agencies and light companies, by sending advertisement via email to the tourists. Then tourists can order indigenous tourism products from overseas or even order the products while they are in Australia before their returns. 2. Amateur artists and crafters, including collectors and hobbyists. In general, most part of this segment will be targeted in low and mid-price level of our products compare with the profession artists. However, we will also consider some customers from this segment are eager to purchase the high-price level products. 3. Professional artists. Considering professional artists not only need to purchase the products, but also need to get regular customer service. Our business will try to set up connections between professional artists and indigenous tourism products services. For the business, such as architects, graphic designers, interior designers, or direct mail advertisers, we will provide large amount order discount for the business oriented purchases or group-buying. 3.2. Service business analysis Our company is an online business store sells indigenous tourism products from Australia to worldwide. Currently customers can buy indigenous products from the stores which are located around the famous attraction sights. However, due to the strict regulations of overseas travelling, some indigenous tourism products are restricted by the materials, amount, and size. Therefore, some customers prefer to order indigenous tourism products online. Our products include: artworks, Didgeridoos, paintings, dolls, books, clothes, and some special order products, etc. 3.2.1. Competitions Besides the traditional attraction sights stores, there are two main competitors in Australia, Alperstein Designs and Spirit Gallery. Alperstein Designs entered the marketplace in 1996 and open online in 2013 (Alperstein Designs, 2013), it is Australia owned business. Alperstein Designs manufactures and designs products for gifts and indigenous tourism industries. Alperstein Designs has its own creative team, and works with Australia artists and designers in order to produce unique products. The products are manufactured in Australia and Asia. Alperstein Designs provides wholesale service nationally and internationally, it also has private label service for the customers who have exclusive desires. Spirit Gallery is located in The Rocks Centre. It was established in 2002 as a small Aboriginal art & crafts store in the heart of historic Rocks area of Sydney Australia (Spirit Gallery 2013). The products include: aboriginal arts, carvings, boomerangs ceramics, glassware basket weaving, bark paintings, and didgeridoos. Spirit Gallery also presents exhibitions for local aboriginal artists. 4. Business Strategy Summary 4.1. Competitive edge Instead of merely selling indigenous tourism products, ABC Company aims to spread Australia aboriginal culture and history. This point is different our business from many of our competitors. ABC Company’s target markets are not only large consumers, but also have different price levels from low to high, in order to fulfil all kinds of the customers’ requirements. 4.2. Marketing strategy Our marketing strategy will focus on customer loyalty, partnership, and online promotion. ABC Company will make partnership between aboriginal institutions and communities, travel agencies and flight companies. For the institutions and communities, we could provide teaching instruments for educational needs in order to achieve the promotional goals and special discounts for students and teachers via email. In the meantime, we can get potential customers and aboriginal culture and history information from them. By working partnership with tourism agents, our business can attract customers by sending emails. Moreover, we could also provide discount deals to the customers who used partner travel agencies and flight companies. Our online promotion will rely on social networks such as, Facebook page, Twitter page, and Aboriginal culture and history videos on YouTube. Our company also have the search engine support from Google. All our promotion plans are based on the Internet, since we are an online store. 4.3. Sales strategy The purpose of our company is to provide the friendliest online shopping experiences for our customers. First, we design and refine our website to make sure it is user friendly. Second, provide secure online payment by using Paypal. Third, provide fast and accurate delivery by working with TNT, UPS, and FedEx. Fourth, we provide the best return/exchange policy to build trust with our customers and maintain retention and loyalty. Most importantly, we will also help some aboriginal communities and extract $1 from our sales every $100. 4.3.1. Sales forecast The following table and chart highlight forecasted sales. 5. SWOT and Competitor Analysis 5.1. SWOT Analysis Strength Our company provides not only a variety of aboriginal products but also offers the services of aboriginal culture. Besides, the social responsibilities which improve the traditional culture play a key role in the objective of our company. Comparing with other aboriginal products suppliers, we do not rely on the big production of manufactory chain. Instead, we stock artwork from our local institution and artists. In the meantime, the price could be lower than other similar stores. All in all, the most strength in our company is the unique and special quality with a lower price. Weakness The weakness of our company is the volume production in the short term. Since our suppliers are the aboriginal people from the local community and institution. It is difficult to replenish our stock as we required. Moreover, the professional knowledge of aboriginal culture and communication to the people is another challenge for us. Opportunity The aboriginal art has become more and more significant in Australia’s tourist trade. People from all over the world begin to focus on the traditional culture when they travel to Australia. Although there are many stores especially in tourist attractions, the lack of aboriginal culture information has confused the customers and they cannot understand the reason they buy this work of art. It is an opportunity for us to bring the aboriginal culture to the Internet from physical world. Threat There are amounts of aboriginal culture shops today and the aboriginal show that will attract more customers and tourists. However, our business cannot show the real perform to our potential customers. There are two main competitors for our company: Alperstein Designs and Spirit Gallery. 5.2. Competitor Analysis Our Company vs. Alperstein Designs For Alperstein Design, there are several advantages compared with our company. First, it has its own creative team; therefore, it could have its unique products. Moreover, it provides private label service for customers who wants exclusive products. Therefore, Alperstein pay more attention on different kinds of high quality products. For our company, even though we do not have creative team, we provide a variety of services and products which are collected from different institutions and personnel. Overall, the price of our products will lower than Alperstein and we provide information of aboriginal culture as well. Our Company vs. Spirit Gallery For Spirit Gallery, it is a brick-click company which means both physical and online business are operating. Moreover, it will provide detailed information about Didgeridoo. Spirit Gallery also presents exhibitions for local aboriginal artists. Though we do not have a gallery for business, we provide particular aboriginal information not only focusing on Didgeridoo, but different kinds of artists and culture. Therefore, compared with Spirit Gallery, our company pay more attention on spreading information on the website. As a result, our business is more convenient for customers searching information and products. 6. Financial Plan 1. Sales growth will be conservative in first 12 month as it takes time for us to advertise and make our products well known by potential customers. It is estimated that the sales increase in a 33% phase from second year of business operation. 2. Marketing costs will remain the 10% of total sales. 3. We may consider company expansion if projected sales met or exceeded our target. 4. There would be a physical store in Alice Spring after three years in order to attract more tourists and present our arts work in more comfortable ways. 6.1. Important Assumptions 1. All the assumption is based on the fact that the investment of this business is from founders’ savings. 2. Assume the overall economy of the world especially tourism marketing is stable so that economic situation would not affect business operation dramatically. 6.2. Projected Profit and Loss Several important assumptions are made to calculate the projected profit and loss: 1. Sales are estimated in a conservative basis, while expenses are estimated above average to maximum values. 2. First years sale will be relatively low as it will take time to be well known by potential customers in order to reach the optimal sales target. With the consideration of first year operation, the sale of business is conservatively assumed at $102,000 in year 1 following by $128,000 and $170,240 in second and third year with gross margin ratio at 59.90%, 60.80% and 57.98% respectively. The net profit for each year stays at $20,596.36, $26,788.61 and $37,678.14 while the net profit to sales ratios are 20.19%, 20.93% and 22.13% accordingly. The further detail information can be referred to Appendix 1-1. 6.3. Projected Cash Flow In terms of the cash flow statement, the sales are main sources of cash inflow, and it increases in the same pace with business expansion. It is based on the assumption that there is no issue on collecting cash from sales. On the other hand, most cash spending is due to paying to aboriginal artists, sponsor contribution to aboriginal communities and utility bills. As showing on Appendix 1-2, the net cash inflows for first three years are at $17,351, $14,222 and $11,426 respectively. 6.4. Projected Balance Sheet Referring to Appendix 1-3, the net worth is steadily growing in first three years. Though there will be a physical store in Alice Spring to present our products and attract new customers, our business is primarily focusing on online buyers. Therefore, most assets are current ones. Furthermore, profits generated from business operation are determined to be retained for future business risk safeguard and opportunities capture. 6.5. Break-even Point Analysis For the purpose of break-even analysis, several factors are assumed as the fixed costs. It includes marketing costs ($5,000), Depreciation ($2,000), utilities ($2,000), Insurance ($400) and other costs ($120) with a total amount of $9,520. Gross margin of first year at 59.90% is extracted as the benchmark to calculate break-even point. As a result, our business needs to make $15,894 sales to be break-even. 7. Recommendation and Conclusion There are many places need to be improved and modified in the future. Firstly, about 60% of operating cost is the cost of rent; therefore, it will save much money if we can cut this cost. One of the effective and efficient ways is to get a closer supply chain relationship. The optimal situation is called just in time that we can acquire the product when we need it as soon as possible. We do not need a facility and staffs to stock and manage our product consequently. Furthermore, it is necessary to corporate with various partners such as culture institution, travel agent, museum and artists. It is easy to manage and corporate with our partners in the first three years. However, we need more partners when our business is stable such as travel agent. Therefore, the more partners we have, the more benefits we get. Additionally, a user friendly interface will encourage customers staying on our website. In order to achieve this, it is imperative to hire website designer or use tools such as WordPress (WordPress 2013). In conclusion, the mission of our company is to be the best platform spreading aboriginal information and providing products. We will offer a variety of services and products both on the website and physical stores for different customer segmentations. As a result, it will facilitate the economy of aboriginal and social stability. 8. Reference List: Alperstein Designs 2013, Alperstein Designs, viewed on 30th September 2013, http://alpersteindesigns.com.au/. Cultural Tours 2013, Territory Discoveries, viewed on 1st October 2013, http://www.territorydiscoveries.com. Rothwell, N, 2013, ‘Plunging sales crisis for indigenous art’, The Australian, viewed on 29 September 2013, http://www.theaustralian.com.au/. Spirit Gallery 2013, Spirit Gallery, viewed on 30th September 2013, http://www.spiritgallery.com.au/. Tandanya, 2013, ‘National aboriginal cultural institute inc.’, viewed on 29 Sep 2013, http://www.tandanya.com.au/. WordPress 2013, Themes directory, viewed on 1st October 2013, http://wordpress.org/themes/. Appendix Appendix 1-1 Profit and Loss

Arab community and Mosque

Terrorism, especially Islamic terrorism lately has been regarded as the most outrageous menace of the civilized and modern. In one hand the Islamic fundamentalist groups or organizations like Al-Qaeda are operating at merciless precision against the whole of western civilization, specifically the United States. The focal point of this paper is to act according to the given situation as a Counterterrorism Official with a significant Arab population in a city. The population includes both Arab American citizens and immigrants.Every action taken in the context of security must be evaluated in terms of not only effective measures of eradication of terrorism but also should deal with the aspects of ethical considerations. An effective measure in countering terrorism could have been to move substantial attack and infiltrate the Arab community and Mosque but that would be too irrational and many innocent civilians would be harmed. Alongside it would appear as if this is a new version of Naz i regime. The better mode would be to implant informants among the Arab community.This would be a much better mode of operation as it is ethical to use personal monitoring system rather than use force indiscriminately. Furthermore, the security officials are bounded by ethical considerations other than the need to prevent needless deaths through terrorism and that should be valued. By ethical consideration it is important to understand the need of self respect and human rights and one should always maintain the boundary between civil rights and autocracy.It should be noted that several measures could be taken maintaining the ethical context. First of all, there is the problem of forged documents and counterfeit currency. To negotiate these and to control probable and further infiltrations the authorities must make it absolutely necessary to double check each and every document under double scrutiny that are put forward by any individual of religion other than Christianity. This may appear a bit of racist statement but under the perception of national security this measure should be taken into account.The primary reason of eliminating Christians from this scrutiny is the information that hardly any person of this belief has ever been found involved with fundamentalist Islamic activities. Secondly, eliminating the Christians would ensure a faster mean of scrutiny as, and logically enough, the majority of the demography of United States and United Kingdoms are Christians. By why not eliminate Hindus, Shiks and Buddhists from this schedule?This is because it would be very difficult for security personnel to identify Hindus, Shiks and Buddhist apart from that of an Islamic militant and it is not possible to teach each and every security personnel the basic differences of religion. Next in the line is the problem of Apartments and hiding places. To counter this issuing a social security number of any other identification documents would not serve the purpose alone. To counter these Islamic militants the authorities should ensure that whoever is renting out an apartment or a property or selling the same to a non Christian individual should inform the authorities at once.The authorities should make it a mandatory issue. Furthermore, the authorities should set up enough whispering campaigns to ensure each individual is aware of this menace of Islamic terrorism and should always keep an eye or two on such suspecting parties. Reports should be forwarded immediately if there are indications of such activities. For this purpose the authorities must ensure to maintain a counter terrorism cell in each station. Another very vital tool of operations of the Islamic fundamentalist elements is the high tech means of communication.Though we often say that the internet has opened our eyes to the world and has unlocked our minds for the greater good, it is with this medium, along with telecommunication and short wave transmitter and other communicative means t he Islamic fundamentalists have closed their minds and hearts and zeroed in to destroy anything and everything that are beautiful, sober and just. To present a counterterrorist plan against this misuse of communication system the authorities must make sure that no bit of information is passed unnoticed or without proper scrutiny.For this, if it requires the best code decoders available so be it. If it requires the best possible software system so be it too. After all this is the matter of national security. (Kar, 2006) Information is one of the most important of all features of the terrorist groups. Infiltrators are basically implanted into the geography of a state mainly to gather information about the related state so that it would be possible for these people to gather enough information whereby it would be possible for the terrorist groups to utilize the information to gain access into the strategic location and perform terrorist activities.To negotiate and nullify these activit ies the authorities must ensure to put up wings involved in counter espionage. A wing of domestic counter espionage system is very hard to digest but overlooking this manifestation of the Islamic terrorist group would be resulting into adversity. So it is much needed that the authorities appoint units to monitor and report all possible act of terrorist espionage. Alongside, strategic points of the country should be well protected and supervised on a regular basis.Departments of concerns related to the country’s defense mechanisms should be well protected as well because there are the prime targets of the Islamic terrorist groups. Every other point of strategic points should be kept under thorough watch like stock exchange and other financial institutions for possible scams. This is because it has been found that the end in source of many financial scams result in the hand of different terrorist groups. These groups are always in need of financial assistance and scams are a go od source of acquiring a substantial amount of finance.(Lamb, 2004) All these measures are ethical and effective as far as security is concerned. Thus it can be stated that f used properly it would possible to eradicate the menace of terrorism staying with in the parameters of ethical considerations. References: Kar, P; (2006); Principals of Homeland Security and Related Applications; Kolkata: Dasgupta & Chatterjee Lamb, D; (2004); Cult to Culture: The Development of Civilization on the Strategic Strata; Wellington: National Book Trust