European Tour Operators Essay

Introduction: The macro-environment looks at broad trends shaping the national and international environment. An analysis of the macro environment is crucial in determining the factors which have a direct impact and/or might influence the strategic direction of an organisation. The macro-environment is difficult for organisations to influence and changes can be far-reaching. The media is usually rich source of both information and speculation and as such cannot be a reliable source of reference. There are available tools for analysing the macro-environment in an attempt to identify those factors, which might have an impact upon the organisation, both in terms of being a threat or an opportunity and these include: * The PESTEL framework * Key drivers * Scenarios The PESTEL framework: categorises environmental influences into six main types: * Political * Economic * Social * Technological * Environmental * Legal The PESTEL analysis evaluates the broad societal trends that affect many industries. It identifies current and future developments that will shape the micro-environments of each industry sector. Key drivers for change: are environmental factors that are likely to have a high impact on the success or failure of a business strategy. Scenarios: are detailed and plausible views of how the business environment of an organisation might develop in the future based on key drivers for change about which there is a high level of uncertainty. Question 1: Key drivers of change Using the PESTEL framework, which helps us understand the key drivers of change and external influences on the organization, we can identify the underlying forces in the macro-environment driving the competitive forces as follows; 1.1) POLITICAL: Terrorist attacks that resulted in tight security measures and strict immigration laws. Following these attacks many countries put some destination off-limits, travel insurers would refuse to cover tourists if they went there despite the government ban or warnings against such travels. Tourism also suffered when prolonged tourist abductions began to affect tourist perceptions. 1.2) ECONOMICAL: the economic crisis can positively and negatively impact tourism industry. Economic crisis became the major threat which results in the collapse of some major players in the industry, for example the closing down of ‘XL Leisure Group’. Given that the UNWTO’s Tourism 2020 Vision had forecast that international arrivals are expected to reach nearly 1.6 billion by the year 2020; this implied that more opportunities and more competition was to be expected in the coming years. Hence the assertion that recession can have positive impacts. It therefore was an opportunity for the survivors as they get more market space and more consumers to absorb in. Moreover, a post-recession boom could be expected and taking into consideration that tourism contributes 10.6% of world GDP they always get their stake from the disposable income. 1.3) TECHNOLOGICAL: Customers relying on internet and online sales were increasing. Statistics show a mere 72% of UK households had access to internet in 2008 and is increasing compared to previous years. Even though online sales make it easier for customers and cut costs by reducing staff and intermediaries, it also possesses a threat to companies. Internet has a low barrier for entry (Porter, 2001) and newcomers can easily pop into the competition. Question 2: Porter’s analysis structure: Michael Porter (HBR, 1989) says awareness of the five forces â€Å"can help a company understand the structure of its industry and stake out a position that is more profitable and less vulnerable to attack†. Five force framework helps identifies the sources of competition in the industry (Johnson et al., 2005). Five forces which are not independent of  each other, draws a connection between competitive forces and the key drivers in the macro-environment. The forces reveal the most significant aspects of the competitive environment. They also provide a baseline for sizing up a company’s strengths and weaknesses: Where does the company stand versus buyers, suppliers, entrants, rivals, and substitutes? Most importantly, an understanding of industry structure guides managers toward fruitful possibilities for strategic action, which may include any or all of the following: positioning the company to better cope with the current competitive forces; anticipating and exploiting shifts in the forces; and shaping the balance of forces to create a new industry structure that is more favourable to the company. The best strategies exploit more than one of these possibilities. 2.1Competitive rivalry: There is a moderate competitive rivalry in the industry. High fixed cost largely favours the incumbents. And there is a significant 5% difference in market share between the top two market leaders (TUI 18.6% and Thomas Cook 13.9% in 2008). These huge variations of market shares of incumbents lessen the competition in the industry. 2.2The threats of substitutes: Even though TV, games or other social activities can act as substitutes, they will never be same as travelling. Moreover, there is a low differentiation of products and together there is low threat of substitutes. 2.3 The bargaining power of buyers: There is a low switching cost to buyers with the emergence of internet and online sales. But the low differentiation of products and lesser number of substitutes limits the bargaining power of buyers to low. 2.4The bargaining power of suppliers: Suppliers have high negotiation powers against the companies having a low share in the market. But in a market where the top 5 market leaders covering more than 43.1% of market and possessing a threat of backward integration, there will be a power balance.  This implies only a moderate bargaining power for the suppliers. 2.5The threats of new entrants: High Capital Requirement creates a high barrier of entry for newcomers. And more than 70 % of market share is controlled by the top leaders and this reduces the price retaliation and keeps the economies of scale high. Brand Recognition also acts as a barrier to new entrants. Hence, the threat of new entrants is low. 3. Five forces and the future Porter (1987) said a company can maintain its leadership in the market only by establishing a difference that it can preserve and by keeping its structure attractive. TUI is the leading company in the concentrated market of tour operators in Europe with a staggering 21% of the market share. TUI operates in over 180 countries worldwide serving more than 30 million customers offering a wide range of leisure travel experiences. They also operate around 240 hotels of which majority are in the 4- or 5- star category. The strengths of TUI will help them to maintain their leadership in the tourism industry. Backward Vertical Integration of TUI helped them to spread out through the value chain. This made them deliver a higher value when compared to their competitors at a cheaper price. Being their own suppliers (Airlines, Hotels etc.) helped them to attain cost leadership. Their investments on direct distribution channels act as a key driver reducing the distribution cost and increasing the margin. Their multi-channel distribution focusing on online sales made them capable of retaining their customers and gaining new customers. Stable and management friendly shareholders supported them to incorporate better customer service along with their excellent operating service, and thus extend their presence in the value chain. Moreover, TUI had better liquidity and financial situation following the sale of Hapag-Lloyd. The acquisition of companies varying from tourism, airlines, hotels, cruises etc. all over the world help them attains differentiation. They claim their differentiated products are integral part of their customer retention, brand building and uniqueness and thus gained them the competitive advantage in the market (Annual Report, 2008).TUI always seek to create value for their customers, investors and employees. As the number of short-haul travels increases, TUI will gain from concentrating a bit more on supporting this (can enter in road transportation facilities). Alike other leaders in tourism industry, TUI will also have to tackle their consolidated fixed assets. The level of success achieved by TUI holds some important lessons and some much needed inspiration to a business world; that could use a little of both. However; according to the World Market Travel Industry Report (2010) the travel and tourism industry fear the long-term impact the global downturn will have on the industry, believing it will struggle to return to pre-downturn demand levels and profitability until 2016. More than half of the industry (52%) believes the global downturn’s impact on tourism demand is one of biggest issues facing the industry over the next five years. Furthermore, 49% felt the downturn’s impact on price, profit and margins is a big issue over the next five years – the two biggest percentage responses to the question: What is the biggest single issue facing your business over the next five years? When asked what is the single biggest issue facing their business over the next five years the global downturn’s impact on demand for tourism is cited by more than three out of ten people (31%), while the downturn’s impact on price, profit and margins is cited by a quarter – again the two biggest percentage responses to the question. REFERENCES: 1. Annual Report. (2008). TUI Annual Report. TUI AG. 2. Johnson G and Scholes K (2010) Exploring Corporate Strategy (9th ed). London: Prentice Hall. World 3. Porter, M. E. (1980). How Competitive Forces Shape Strategy. The McKinsey Quarterly ,34-50. 4. Porter, M. E. (2001). Strategy and the Internet. Harvard Business Review, 63-79. 5. Porter, M. (1987). From Competitive Advantage to Corporate Strategy. Harvard Business Review, 43-59 6. TUI website. (n.d.).Retrieved November 6, 2009, from http://www.tui-group.comTUI Case Study UNWTO. (2005). Tourism 2020 vision. Retrieved October 31, 2009, from World Tourism Organisation: http://www.unwto.org/facts/eng/vision.htm

Strong Centralized Government

There is no doubt that Iraq needs a strong centralized government. This assertion is based on the following factors: 1) the rise of radical Islam, 2) the heterogeneity of the Iraqi population (ethnic groups), and 3) resistance to the growing phenomenon of ‘hollowing of the state. ’ It may be misleading to assume that the existence of these factors would necessarily lead to the establishment of a strong centralized government. But in Iraq, this is the case.The rise of radical Islam engulfed the politics of Muslim countries in the Middle East. Muslim extremists used the name of Islam to destroy the basic institutions of health, education, and welfare; replacing them with institutions that outrightly promote political anarchy, social stratification, and international terrorism. Iraq was able to resist the waves of radical Islam because of its highly centralized government. The government’s grip on the local population prevented dissidents from fully articulating thei r radical ideology.According to Huntington, the suppression of radical Islam can only be achieved through the establishment of strong authoritarian institutions; institutions which overtly rejects the fallacies of Islamic extremism (Huntington, 429). Huntington held that Islamic extremism is, in general, a stumbling block to self-determination and development (Huntington, 431). Iraq’s war with Iran simply illustrates the former’s need to defend itself from the waves of radical Islam. Kuznetsov argued that the Iraq-Iran war was a contest between orthodox Islam and radical Islam (Kuznetsov, 219).This was not the case. Iran’s ambition to dominate the Middle East was based on two factors: the need to propagate radical Islam, and security. Iraq successfully contained the Iranian threat because of the authoritarian nature of the Iraqi government. Efficiency, effectiveness, and brutality were the main qualities that enabled Iraq to resist Iran. Glazer and Moynihan argu ed, â€Å"Whenever a democracy has a large number of ethnic groups, it is likely to fall into political anarchy† (Glazer and Moynihan, 374).This statement makes sense. In many democratic countries with heterogeneous populations, there is the constant threat of civil war and political instability. This is obvious. Ethnic groups vie for power through the electoral system to control other ethnic groups (as in the case of Yugoslavia). Ethnic groups who lost in elections had no choice but to confront the dominant group through armed struggle. In Communist and authoritarian states, this was not possible.Communist and authoritarian states disregarded ethnicity as a factor of solidarity. Iraq was able to contain its heterogeneous population through systematic government control on all aspects of the society. Political instability could not exist because the government served as the unifying factor of the country. The establishment of a strong central government in Iraq may be regarde d as a measure to ensure the dignity and integrity of the state. Today, the phenomenon of ‘hollowing of the state’ is apparent in many democracies.This phenomenon is characterized by the weakening of the state as an institution, reduced economic sovereignty, and group power politics (Toynbee, 728). Only a strong and highly centralized government could effectively preserve the power and sovereignty of the state. Works Cited Glazer, N and D. P. Moynihan. Race and Ethnicity. American Sociological Review, 43(17), Oct. 2001. Huntington, Samuel. The Clash of Civilizations and the Remaking of the World Order. New York: Macmillan Publishing Company. Toynbee, Arnold. A History of the World. London: London Publishing House, 1975.

Economics Essay Example | Topics and Well Written Essays - 1250 words

Economics - Essay Example It is a type of RAM that retains its data only if it is continuously accessed by a refresher circuit, in the absence of which it loses its contents. All personal computers use DRAM, as against SRAM (static random access memory), because they are much cheaper and occupy much less space (PC Guide, 2001). Online technology news publication Network World reported on January 4, 2011, that towards the end of 2010 until the date of writing, there had been an oversupply of DRAM which sent prices to its lowest price in one year (Jennings, 2011). The situation was blamed on post-holiday oversupply, also sending prices for personal computers lower. 3.0 Analysis 3.1 Supply and Demand Demand is â€Å"a desire for a good, backed by ability and willingness to pay.† Market demand is the cumulative demand of all buyers (Dwivedi, 2005, p. 34). The law of demand is â€Å"all things being equal, the amount demanded increases with a fall in price and diminishes with a rise in price† (Marsha ll, quoted in Dwivedi, 2005, p. 35). In the article, it was mentioned that earlier in 2010 there had been a forecast of shortage for the DRAM. The forecast was based on a Goldman Sachs PC unit growth forecast made in March 17, 2010 (Telecoms Korea, 2010). Because DRAMs are major components of PCs, there was a projected increase in demand for DRAMs to service the higher demand for PC manufactures. As the market unfolded for the rest of the year, however, it became apparent that the forecasted demand was overestimated. Supply is â€Å"the quantity of a commodity which its producers or sellers offer for sale at a given price, per unit of time.† Market supply is the sum of supplies of commodity by all individual firms (Dwivedi, 2005, p. 47). The law of supply is â€Å"all things being equal, the quantity supplied increases with the increase in price, and decreases with the decrease in price† (Dwivedi, 2005, p. 47). In the article, it was mentioned that beginning December, as the holiday shopping season lost momentum, major semiconductor manufacturers continued to output DRAMs in large volume, purported to stay competitive. This was due to the earlier forecast of a DRAM shortage, for which companies increased factory capacity, that in turn required higher production outputs to even out the additional overhead and maintain a lower per unit cost. Figure 1 following is a graph of the superimposed supply and demand curves. It is evident that increasing price leads to an increase in quantity supplied and decrease in quantity demanded. The point at which the two curves intersect is the equilibrium point, representing the price at which the quantity demanded is equal to the quantity supplied, and transactions take place. It is at this point where the market is made. There are shaded portions of the graph where surplus and shortages are represented. The interest of this paper is the area above the equilibrium point, where surplusage, or oversupply, occurs. At these prices, the quantity supplied exceeds the quantity demanded, forcing the suppliers to lower their prices. Figure 1: Law of Supply and Demand 3.2 Oversupply (Surplus) Oversupply occurs when the quantity supplied exceeds quantity demanded. This would tend to drive prices down, because suppliers would tend to outbid each other in a price war

Wild Frontier Pt. 3 Assignment Example | Topics and Well Written Essays - 750 words

Wild Frontier Pt. 3 - Assignment Example WSS as it integrates the intranet and web applications will make it easier for the company to deploy their applications. The organization’s intranet can be accessed from anywhere by its employees. Uploading the web applications on the intranet makes it easier for the remote offices to access these applications without them necessarily being installed on the local machine (Husman, 2007). Windows SharePoint Services are used for creation, management and sharing of documents. Like any other organization, Wild Frontier has several departments and these departments are interconnected both in the headquarters and field offices. The finance department in the remote office should be able to access the records at the headquarters, and this can be accomplished using SharePoint. Employee A at the headquarters will upload a document on the SharePoint workspace of the finance department and Employee B in one of the field offices accesses it via the intranet. On this very document, Employee B can make changes and save these changes (Husman, 2007). This means that there are two different people working on the same document- each at a time- this avoids duplication of work. The advantage is that SharePoint has document versions and if one does not like the current edited version, they can revert back to the previous version without redoing the whole document. The management wants to make use of the same number of printers with the increased taskforce and field offices. To be able to accomplish this, the printers will have to be connected on a network. Having the printers connected to a common network will make it easier for the employees to print on any machine in the building as long as the printer is configured on the user’s machine or laptop. Additionally, if the printers enable the users to print wirelessly then this makes the whole printing process much faster and convenient. This will see to it that some of the printers are moved

Summary time,space, and the evolution of afro-america society Term Paper

Summary time,space, and the evolution of afro-america society - Term Paper Example Through the American Revolution, African cultures had been integrated into the Euro-American culture in the mid eighteenth century (46). The population of slaves ranged from 4-8 percent in different counties. Most Northern blacks worked in the countryside and a few labored in the rural industries. Iron masters were the largest employers of slaves in the industries and owned the largest number of slaves in the north. Most rural slaves worked in the farms tendering livestock and growing crops for export. These slaves lived on the farms and never worked in gangs (47). Some of the white farmers relied on indented servants to supplement farm labor since slaves were expensive. In trade centers, blacks worked as stock minders and herdsmen. Provisional trading required several slaves, which enabled them create a strong companionship compared to those working in the farms. Urban slaves worked as house servants and lived in back rooms, closets, and lofts (48). The interaction between the slaves and the white people led to a gradual cultural transformation. Those in the urban centers started participating in economic activities, and they adopted Christianity. New York slaves started acquiring property, while those in the rural areas continued living in poor

Kerzner Office Equipment Essay Example | Topics and Well Written Essays - 1250 words

Kerzner Office Equipment - Essay Example The compny mngement hd limited time to prepre this celebrtion nd needed high performnce tems for this project. Shiseido's mngement ws frid tht on bdly plnned projects this stge often involved considerble negotition nd ltertion to the pln. It ws likely tht Shiseido's wild hve lots of chnges to mke to the pln nd tht the mngers did not relly understnd the pln (Shiseido Home Pge 2007). The problem ws tht the nniversry ws coming but nothing ws redy for the celebrtion (Burkun, 2005). 2. To void too much chopping nd chnging t this stge, Shiseido decided to involve the mngers so tht this pprovl stge becomes formlity. To improve the sitution nd 'sve' the project, Shiseido motivtes its workers finncilly nd personlly, nd sets relistic objectives. The new objectives hve motivted tem running the project, nd motivtion ws creted by setting relistic trgets tht the project tem. Its executive tem spent time with the people involved getting them to tell how things will work (Frme, 2002). 3. This sitution provides the opportunity nd motivtion for the compny nd its employees to think hed bout the project they re undertking. This process tends to revel problems nd therefore helps find solutions to them. Problems get solved while they re still smll, remote problems (Gry nd Lrson 2003). Few problems re overlooked nd left until they loom lrge. The more people tht the compny gets involved in this thinking-hed process, the better the project will be. Shiseido cnnot get someone else to do it. If nothing else, project plnning systems provide focl point bout which the project tem cn spend some time thinking bout the future, spotting problems nd overcoming them (Shiseido Home Pge 2007). Jgur Crs 1. Jgur Crs is luxury cr mnufcturer relying on innovtion technologies nd new methods. Working on 'SfeIT" progrm, Jgur Crs hs to crete high performnce tem nd meets tine limits. The project mnger ws busy trying to blnce the three objectives of the project: time, cost, nd qulity, when the specifiction suddenly chnges. SfeIT" progrm ws prt of UK. Government's progrm nd needed creful plnning nd effective mngement. gret dnger is where the cost nd time limits re precise nd the project is not. Jgur Crs found the scope of the project growing, putting the mngement under more nd more pressure s the cost nd time limits did not chnge (Frme, 2002; Jgur Compny 2007). 2. The nture of the project nd the type of resource required chnge t key dtes. The min problem is tht in softwre development projects there is very little with which to mesure progress (Frme 2002). For this reson softwre development is broken down into discrete stges seprted by key dtes or milestones. It gives the project mngement tem something to mesure ginst. s mny softwre projects re very similr to ech other, stndrd sets of milestones nd phses. This process explins wht ech stge in the project should chieve, wht informtion is needed to begin the stge, nd wht informtion should be vilble t the end. Phses hve nmes such s design, coding, nd testing. Key dtes id the preprtion of summry report-the report cn summrize the project in ten or dozen key dtes (Burkun, 2005). 3. pplying this pproch, Jgur Crs ws ble to meet objectives nd finish the project on time. lso, it creted high performnce tems nd improved communiction mong employees. in this project, the leder who concentrted only on the tsk did well in the short term. The tem gve tht leder

Theme and Narrative Elements in the Short Story Essay

Theme and Narrative Elements in the Short Story - Essay Example In order to bring out the theme of a story clearly, the author uses the characters, action, setting and various elements of literature (Guerin, 2005). The Necklace applies irony to express the theme of poverty and social class in society. Mathilde is born in a family of employees, and the author describes her as a person with no choice of what she wanted. The author describes her as a person with no means of being known, loved, understood, or getting married to a rich man. The theme is enhanced by the fact that she was forced to get married to a little clerk working in the Education Ministry. The title of the story, â€Å"The Necklace† creates a desire for the reader to know why the title was used. The necklace she borrowed, as the story continues, becomes the source of conflict in the story. The literary element of irony in the story has contributed greatly to the buildup of the theme in the story. There are various instances in the story where irony is evident. Mathilde thou ght of herself living in delicacy and luxury, but throughout the story, she has been depicted as a poor woman and wife. Mathilde and her husband have been in debt for a period of ten years. This is after she lost her friend’s diamond necklace, which she had to pay. She came to learn later the necklace was not original diamond and she could have rather said the truth than buying a new one. She lived her life thinking of all the best things in life, which she admired, but did not have. She had a long-time rich friend whom she did not want to go and see anymore. This literary element of irony has enhanced the theme of poverty and social classes. Mathilde could no longer visit her rich friend because of their differences in social class. Her friend was a rich person whereas she was extremely poor and always in distress. The author to depict the socially classified society of Parisian in the 1880s may have used this literary element of irony. When her husband comes home one day ex pecting to make his wife happy, Mathilde is angry. He comes with a card inviting them to a party at the ministry’s palace. However, Mathilde is not happy because she does not have a nice dress to wear. She ends up compelling her husband to buy her a dress with the money he wanted to buy a gun. Mathilde is not satisfied with her status, but wants to look like the rest of the women. This instant of irony indicates how social class influences people in poverty. Use of characterization in the story has enhanced the portrayal of the theme of poverty and social class. The character of Mathilde is portrayed as a person who is not contented with what she has. She is always dreaming of having a nice and luxurious apartment, with rooms decorated with oriental tapestries and lightened by bronze lamps on the floor. Her unsatisfactory character finally lands her in trouble after borrowing a diamond necklace from Forester. Mathilde is totally unsatisfied and unhappy with all she has and sh e is looking for material things throughout her life. Her character of always dreaming and desiring things she cannot afford made her to appear arrogant and stuck-up when she refuses to attend the party because she does not have a dress and the right jewelry. All this is set in Parisian, which creates the atmosphere of the story. The setting enhances the theme of poverty and social class, which was rampant in the area of setting in the 1880s. Looking at the efforts of Loisel to please his