Hsbc Case Essay Example for Free

Hsbc Case Essay HSBC is known as the â€Å"World’s local bank†. Originally called the HongKong and Shanghai Banking Corporation Limited, HSBC was established in 1865 to finance the growing trade between China and the United Kingdom. HSBC is now the second largest bank in the world, serving 100 million customers through 9,500 branches in 79 countries. The company is organized by business line (personal financial services; customer finance; commercial banking; corporate investment banking and markets; private banking), as well as by goegraphic segment (Asia-Pacific, U. K. /Eurozone, North America/NAFTA, South America, Middle East). Despite operating in 79 different countries, the bank works hard to maintain a local feel and local knowledge in each area. HSBC’s fundamental operating strategy is to remain close to its customers. As HSBC chairman Sir John Bond said in November 2003, â€Å"Our position as the world’s local bank enables us to approach each country uniquely, blending local knowledge with a worldwide operating platform†. For example, consider HSBC’s local marketing efforts in New York City. To prove to jaded New Yorkers that the London-based financial behemoth was â€Å"the world’s local bank. HSBC held a â€Å"New York City’s Most knowledgeable Cabbie† contest. The winning cabbie gets paid to drive full-time for HSBC for the year, and HSBC customers win, too. Any customer showing an HSBC bankcard, checkbook, or bank statement can get a free ride in the HSBC-branded Bankcab. The campaign demonstrates HSBC’s local knowledge. â€Å"In order to ma ke New Yorkers believe you’re local, you have to act local,† said Renegade Marketing Group’s CEO Drew Neisser. Across the world in Hong Kong, HSBC undertook a different campaign. In the region hit hard by the Severe Acute Respiratory Syndrome (SARS) outbreak, HSBC launched a program to revitalize the local economy. HSBC â€Å"plowed back interest payments† to customers who worked in industries most affected by SARS (cinemas, hotels, restaurants, and travel agencies). The program eased its customers financial burden. The bank also promoted Hong Kong’s commercial sector by offering discounts and rebates for customers who use an HSBC credit card when shopping and dining out, to help businesses affected by the downturn. More than 1,500 local merchants participated in the promotion. In addition to local marketing, HSBC does niche marketing. For example, it found a little-known product area that was growing at 125 percent a year : pet insurance. In December 2003 it announced that it will distribute nationwide per insurance through its HSBC Insurance agency, making the insurance available to its depositors. HSBC also segments demographically. In the United states, the Bank will target the immigrant population, particularly Hispanics, now that it has acquired Bital in Mexico, where many migrants to the United States deposit money. Overall, the bank has been consciously pulling together its worldwide business under a single global brand with the â€Å"World’s local bank† slogan. The aim is to link its international size with close relationships in each of the countries in which it operates. The company spends $600 million annually on global marketing and will likely consolidate and use fewer ad agencies. HSBC will decide who gets the account by giving each agency a â€Å"brand-strategy exercise. † Agencies will be vying for the account by improving on HSBC’s number 37 global brand ranking

Private Tutoring The School Performance Of Senior Students Education Essay

Private Tutoring The School Performance Of Senior Students Education Essay Private tutoring has long been a major phenomenon in parts of Asia, including Hong Kong, Japan, South Korea and Taiwan. In this study, we attempt to highlight the relationship between private tutoring and students school performance in Hong Kong. It seeks to account the variety of factors of changing students school performance. The study certainly considers the declining of the confidence of education in current education system as one of the key factors. Meanwhile, the study will examine possible theories to attribute to attend private tutoring and school performance. Finally, we will discuss the effect of attending private tutoring that cause the students poor school performance in their school. In the recent decade, the academia has published a boom of studies on private tutoring in different parts in the world. In the same time, the researches of Bray Mark (2005) reveal that private tutoring is growing elsewhere, especially in the Asian Societies. In countries of Japan, Taiwan and Korean, more than one third students regularly receive private tutoring; in Hong Kong the proportion is considerable higher. As Baker and LeTendre (2005: 55) state, the use of private after-school activities has become a world megatrend among families with children apart from the local education system. Simultaneously, as Baker and LeTendre(2005:61) state that one of the most certain functions of private tutoring is the enrichment strategy. It means that the demand of the private tutoring is associated to the competition for future educational opportunities and the existence of high-stake examinations (public examination). For example, there is a close connection between ones educational qualifications and labor market opportunities. However, private tutoring also provides negative effect to the students such as decreased their interest and participation in school classes. Private tutoring is attributed to a lack of interest of the students. They have kept in mind that they can pay for someone who helps them pass in the examinations and they dont need to pay attention in regularly school lessons. Private tutoring create new educational opportunities for many individual but also placed heavy burden on the states education system (Silova et al.,2006b). In HK, according to the Professor Mark Brays research, there are about 70% senior forms students attending private tutoring. The proportions are higher especially just before important examinations. Meanwhile, according to Census and Statistics Department in 2005, from primary to secondary schools, the total annual expenditure of the tuition fee has reached 3 billion HK dollars. Although there are no lack of researches studying the tutoring culture in HK, still most of them are mainly focus on studying what motivates students attending tutoring or the relationship between private tutoring and academic achievement. Whether the out of school tutoring would affect the in-school education, yet it is remains invisible in most researches or debates, let alone policy documents. 2. Objective With a specific focus on the phenomenon, the study examines private tutoring phenomenon in Hong Kong and analyses its consequences for the students school performance in the secondary school. We aim to generate pervious studies and develop another aspect of this topic, to have a more specific research towards this topic. Hence, more specifically, our objectives are: To further understand the contemporary situation of private tutoring To examine the main factors leading to the change of school performance; (such as students expectation of tutors, confidence in current education system to help students to gain qualification) To test possible theories linking the relationship between private tutoring and school performance To examine how attending cram schools can affect the performance on mainstream schooling 3. Significance Explicit significance: The mainstream education system is expected to achieve a wide range of goals. It includes the development of all-rounded students who have sport and musical talent as well as academic interests or personal development. However, the standardize curriculum emphasized by private tutoring contrasts with that in mainstream schools. Examination-oriented tutoring institutes cut off the notion of the mainstream education and infuse the focus of passing examination into students mind. We view this phenomenon as negatively distorting the development of mainstream curriculum. Private tutoring can distort the curriculum in the mainstream system, upsetting the sequence of learning planned by mainstream teachers and exacerbating diversity in classrooms. (Bray, 2007) Indeed, the over emphasize the importance of private tutoring becomes the barrier over the development of all-rounded students. In fact, the phenomenon may be an expression of the students over the current education system. The increasing in public demand of private tutoring reflects the existing fundamental problem of current education system, especially the examination institution. Hence, it is the time now for HKSAR government and educationists to review on the current education curriculum. Implicit significance: This research is mainly based on the Brays observation. In his previous study, he mentioned that students attending private tutoring potentially lead to the poor school performance (Bray, 2007). But in the study, he did not concretely point out the theories or concepts to explain the attribution among attending private tutoring and poor school performance. Hence, our research indicates two relative theories to explain the mutual relationship which is called achievement goal theory and cultural of dependence. The notion of two theories and the attribution among attending private tutoring and poor school performance will be described in detail of the latter part literature review. Therefore, our research broadens the existing context of the theoretical framework in the study of private tutoring. We hope to have implications for understanding the contemporary students expectation towards the tutoring and what is more important is that we hope our research can find something useful for the contemporary educational organizations to enable students to obtain an all-round development and acquire life-long learning skills. Literature Review As forming a deductive research, we are going to apply two theories to test our hypothesis, which are achievement goal theory (Ames, 1992) and culture of dependence (Yasmeen, 1992) . Achievement goal theory (Ames, 1992) Achievement goal theory is the label used in educational psychology to discuss research into motivation to learn. Goals of learning are thought to be a key factor influencing the level of a students intrinsic motivation. According to this theory, it integrates cognitive and affective components of goal-directed behaviors. Since achievement goal theory argues the purposes of achievement behavior, it mainly studies an the integrated pattern of beliefs, attributions, and affects that produces the intentions of behavior and that it is represented by different ways of approaching, engaging in, and responding to achievement-type activities (Ames, 1992: 261). Under achievement goal theory, Ames (1992) suggests performance goal which focuses on students ability and sense of self-worth. The ability is built up by doing better than others, by surpassing normative-based standards such as examination. More importantly, students want to achieve their goal with little effort. Therefore, students believe learning is an only way to achieve a desired goal and attention is directed toward achieving normatively defined success (Ames, 1992). Base on this theory, we can understand that why students taking tutoring is so popular in following literature review. Senior secondary students attend to mass private tutoring The demand of receiving tutoring is high in senior students (form 4 to form 7) (Lee, 1996). It is because they are presumably sitting two open examinations, which are Hong Kong Advance Level Examination and Hong Kong Certification of Examination. The main reasons for Hong Kong students having tuition are that they are not satisfied with their academic performance. Also, some of the students say they that do not understand what their teachers teach in class (Lee, 1996: 8). Furthermore, there were 8% of respondents admitted preparing for the public examinations is a reason to have tuition (Lee, 1996: 8). In short, as mainstream schools cannot help students to improve their results to take in public examinations, senior students take in tutoring. Students gain from tutoring for taking in public examination The majority of students believe that the quality of tuition class is better than schools (Nanayakkara and Ranaweer, 1994). The reason is that students believe tutoring is a short cut to prepare for public examinations. Kwok (2009) mentions that in Hong Kong, tutors usually deliver exam skills and tips, so tutees do not expend full effort in learning individual subject and feel potential loss if they do not receive tutoring. Also, they, usually represent an authoritative teaching image because of their dress code. In other to meet tutees individual need, tutors introduce CDs and lots of supplementary resources to their tutees. Furthermore, in students view, idol tutors are regarded as famous teachers because they can inspire tutees to study efficiently (Kwok, 2009). For example, idol tutors persuade their tutees to select certain areas for revision. Some past public examination questions were covered in idol tutors lecture notes. All these cause students to rely on tutors rather than school teachers (Kwok, 2009). Culture of dependence (Yasmeen,1992) Yasmeen (1992) argues that lots of students tend to rely on tutoring because of its exam tips. However, classroom attention tends to reduce creation discipline problems for school teachers. In short, students regard only receiving supplementary tutoring is more important than learning with tutoring and mainstream school. Base on the culture of dependence, there is related information that is found from literature. Dependency on school teaching for examination Most students believe the result of public examinations is vital. Kwak (2004) points out that since university admission is determined by public examinations, but not students school records, students seek to prepare efficiently to take the examinations. In mainstream education, however, schooling not only focuses on examination achievement but also all-rounded education (Bray, 2007). In contrast, the content of tutorial classes is close to the major public examinations (Bray and Kwok, 2003). Hence, students tend to undermine the publics trust in school instruction (Kwak, 2004: 4). School performance Bray (2007) argues that tutoring will cause negative impacts on school performance. As some students rely on private tutoring too much, they may be less interested in mainstream education. Also, Students believe that private tutoring can inform student how to pass their examinations; they do not need to attend school classes except when they are required to do so by school regulations (Hussein, 1987). In Japan, some students are absent in school before examination. They just study at homes and attend in tutoring classes (Sawada and Kobayashi, 1986). Since topics have been covered in tutoring classes; students do not pay attention in mainstream education and have less confidence in teachers teaching (Nanayakkara and Ranaweer, 1994). There are also other factors affecting students performance in school like social network. Friendship in school is one of the factors to determinate students performance (Yang Tang, 2003). Since friends have same background like school environment (Fehr, 1996), students are more likely to access resources that may be good for coping with academic stresses (Ibarra, 1995). So, friendship network can let students confirm their academic performance (Baldwin, Bedell, Johnson, 1997). More importantly, a student who is central in a friendship network has a grater chance of helping others and being helped: thus, he is likely to perform better in the school (Yang Tang, 2003: 96). Furthermore, advice network in school can help students perform well in school. Advice network means that individuals share information and guidance for the completion of work (Sparrowe, Liden, Kraimer, 2001). When a student finishes his task, he can increase his work by obtaining help from available advice network. It reflects an individual is capable of accumulation knowledge and experience about task-related problem. If a student is central in his advice network, he is likely to perform actively in the school (Yang Tang, 2003). Conceptual Framework After reviewing the literatures, we form the following conceptual framework. Hypothesis These are our hypotheses of the study as follow: If students participation in tutoring is high, then students would have more gain from tutoring. According to achievement goal theory (Ames, 1992), one of the reasons motivate students taking tutoring is that they seek to success in examination with playing little effort. Therefore, we believe that students can receive lots of useful materials and information from tutors like examination tips supplementary exercise when participating in tutorial lesson for a long time. Higher students gain from tutoring, less dependency on school teaching for examination. According to culture of dependence, students will more rely on tuition than school for their study. So, we want to test whether the tuition for students are important and studying in mainstream schools can fulfill students satisfactions of taking examination efficiency. The less dependency on school teaching, the more difficulty concentration on study in school. The less dependency on school teaching, the less interest in school. The less dependency on school teaching, the lower attendance in school. After reviewing the literature, usually there are negative impacts on school performances that are mentioned after students receive tutoring. These hypotheses try to link up the former variables in our conceptual framework and studies whether there is a relationship between the three variables and the poor school performance. Conceptualization In this part, there are some definitions of the key concept that help us to clarify the nature and direction of the study. 1.) Definition of Private Tutoring According to the Mark Brays book which called the shadow education system: private tutoring and its implication for planners, the definition of private tutoring can be divided into four dimension. Firstly, it is the dimension of privateness. Private tutoring primarily concerned with tutoring provided for profit-making purposes by the private enterprises and individuals. It is not concerned with the supplementary help at public expense, such as provide head-start programmes for slow learners and the unpaid work, such as voluntarily help others with homework and tasks. Secondly, it is the dimension of the subjects which private schools provide. Private tutoring mainly focuses on the academic subjects, such as English, Cantonese or Mathematics rather than some extra-curricular subjects, such as musical or artistic skills. On the one hand, teaching academic subjects help students relieve the heavy academic load of formal classroom and solve the pressure of facing public examination. On the other hand, those non-academic subjects are merely for personal interest and indirectly related to the formal education system. Thirdly, the form of the private tutoring deserves special attention. The form of private tutoring may be provided in different ways. Some tutoring is provided one-to-one in the home of either the tutor or their client. Other tutoring is provided by correspondence in the mail or over the internet. But in our research, we mainly concentrate in the area of mass private tutoring, such as the tutoring provided by Modern Education and Kings Glory Education in Hong Kong. The form of mass private tutoring is there no more than 45 tutees in each tutoring class and the tutoring run both regular class (live) and video class. Meanwhile, the tutoring classes mainly focus on public examinations with intensive notes, revision exercises and on-line follow up services (Kwok, 2009). Finally, it is related to the education level of the target students. Private tutoring exists at the post-secondary and even pre-primary levels. In the majority societies including Hong Kong, private tutoring is most evident at the senior secondary level rather than the junior secondary and upper primary levels. Hence, the senior students in the secondary school can be reflected the phenomenon of private tutoring. At the meanwhile, senior secondary students more tend to perceive private tutoring as the gateway to success in public examination. Our research is mainly focused on senior secondary school students which mean form 4 to form 7 students. 2.) Gain from tutoring According to the study of Yiu (1996), he mentioned that the reasons why students attend the private and what their gain in the tutoring class. First of all, since the EMI schools used English to teach the subjects, students may be benefited from hearing the content again in Chinese. Private tutoring used Chinese as the medium of instruction certain increases students understanding of the topic and enhances their interest in learning. Secondly, tutors provide some extra notes and exam skills for the students which school teachers do not provide. Thirdly, tutors could help consolidate the content which school teacher teach in the class. Therefore, students have a deep understanding of school curricular. Finally, the extra teaching materials of the tutors provide extra-curricula knowledge to the students which they can not learn in class room. 3.) School teaching for examination To conceptualize the school teaching for examination, we will defend it is the materials that provide to students for preparation of examination. So, exercise, text book, skills for taking examination, quiz and mock examination which are provided by school will be considered school teaching to help students prepare for examination. It is because these materials can let students conform their knowledge and practice more in order to prepare them efficiency in taking examination. 4.) Definition of School Performance According to the definition of Indicator and Professional Developing Department (2007), the school performance can be divided into four main dimensions as following: attitudes and emotions (Personal) academic results (Academic) participations in groups (Social) performance in co-curricular activities (Social) At the meanwhile, the concrete meaning of poor school performance is the students who have: (i) difficulty concentrating on study (ii) decreased academic achievement levels (iii) decreased interest in school (iv) increased absences (v) not participate in class or co-curricular activities actively (vi) not willing to participate in groups But in our research, we do not measure academic results as an indicator of ones school performance. Its because the measurement of academic results need to take a long period time to collect the examination results from the students. Currently, students will get their results in Jane to July, and hence we do not have adequate time to finish our research before April. Measurement We choose the 4 level of measurement to form operation and assigns numerical values to the variables. Here are some examples in each variable: Students attending Tutoring NominalÆ’Â   classified into 2 or more categories E.g. Attending private tutoring 1) yes 2) no Gain from the tutoring IntervalÆ’Â   rank objects such that the magnitude of the difference between two objects can be determined E.g. Satisfactory towards the exam tips provided from tutorial Totally satisfied, 2. Satisfied, 3. Dissatisfied, 4. Totally dissatisfied) Besides of the 4 level of measurement, some scales are used to measure subjective feelings of respondents. Dependence on School Teaching for Examination We adopt the Semantic Differential Scale, which is constructed by Osgood in 1950s. It is interested in attitude toward an object but not in each respondents evaluation. E.g. Overall the lessons I am taking in school are Interesting __ __ __ __ __ Boring Useful __ __ __ __ __ Useless Easy __ __ __ __ __ Difficult Poor school performance We adopt the Likert scale, which is constructed by Rensis Likert in 1930s. Subjects are asked to indicate their degree of agreement or disagreement with a series of statements which are favorable or unfavorable to the construct. E.g. Student Attitudes towards Main Schooling Strongly strongly agree agree disagree disagree Q.1 Tutors is superior than teacher ____ ____ ____ ____ Q.2 absent at school servial times is OK since I can catch up the lesson by attending tutorials ____ ____ ____ ____ Research Design Purpose of Research The research is an explanatory and descriptive research. Explanatory: In the research, we will explain the conceptual framework we construct, as the conceptual framework constructed by our group, we will explain how we construct this conceptual framework. Descriptive: In the research, we will describe the statistical data we will get in the survey by questionnaire, in order to generate a finding of the survey. Nature of Study Deductive Approach: Our research will be conducted in deductive approach. After reviewing the literatures, we find two theories, which are Achievement goal theory and Culture of dependency, to prove that how students attending tutoring classes will affect their school performance. We will base on these two theories to conduct our research about the relationship between those two variables in Hong Kong, which are students attending tutoring classes and students school performance. Quantitative: In our research, we have quantitative research method to test the hypotheses in the research. Since we have concerned the difficulties of analysing qualitative data, we choose quantitative research method to conduct the research. We will use survey to obtain the information about how students school performance be affected after the students (respondents) have attended to tutoring classes. And for the survey, we will make use of questionnaire to conduct the quantitative research. Since we want to have statistical information to explain how students attending tutoring classes will affect their school performance. Sampling Sample size: The research will seek 150 respondents in the research from form 4 to form 7 secondary school students who have attended tutoring classes in Hong Kong. Non-probability Sampling: We will select non-probability sampling in the survey, as we do not have the name list of all form 4 to form 7 secondary school students in Hong Kong, we cannot select the probability sampling in the survey. Also, non-probability sampling is less costly and time-consuming, which are important advantages for us to select non-probability, as we do not have much time and budget to conduct the research. Purposeful Sampling: Our group considers that the school performances of the secondary school students from form 4 to form 7 are more influenced by the tutoring classes. Since they have to prepare for the public examination, such as HKCEE and HKALE, they may rely on the tutoring classes which focus on the techniques of examination, and this is just what the students need to prepare for the public examination. Convenience Sampling: The research targeted respondents are the form 4 to form 7 secondary school students who have attended tutoring classes. Therefore, our group will precede the survey in Park Lane Plaza in Tuen Mun, the reason for this is we consider that arcade has many tutoring schools inside, such as Beacon college, Kingsglory Education, Modern Education and Everlearning Eduaction. Therefore, we can capture the accurate samples that can match our targeted respondents, in order to enhance the validity of the research. Ethical Concern Our group has concerned the ethical concern may induce during the research, as we do not want to harm the respondents after participating in the research. And we have concluded the possible ethical concern in three kinds. Students may feel bad about participating in the survey. Students may worry if they have answered poor performance at school in the questionnaire will result in a negative effect to themselves and even their schools. Therefore, in the questionnaire, we will not ask students personal information, and also, we will ensure the information they provide must keep confidential. Students may worry about the survey that obstructing them from attending tutoring classes promptly. Also, students may think that the survey is time-wasting for them if they think the research will take for a long time. To deal with this problem, we will conduct the survey after those tutoring classes have finished, then, students may be free to participate in the research. Also, we will tell them the exactly time the survey will take, which is just about 8 10 minutes, and then the students may be pleased to participate in the survey, as the survey is not very long. The students may have doubt about the research and even us. As they may worry if their information answered will be misused. To deal with, we will inform the respondents who we are and show them our students identity card. Also, we will tell them what the purpose of the research is and how their information will be used in the research. More importantly, we will tell respondents that the information will keep confidential. Data Collection Methods Through this research, we want to find out the relationship between senior students in mainstream schools to attend tutoring class and poor school performance. To know the situation in Hong Kong, we will design a questionnaire and use quantitative interview. It is because data become more convenient to collect and more accurate that avoids subjective perception (Division of Sociology of Chinese University of Hong Kong, 1998). We know that there are three main methods to conduct the research with questionnaire in quantitative interview. They are face to face mode, telephone mode and postal mode. Although face to face mode is slow and the cost is high, we still applied it because of the call back rate and high veracity. In the questionaire, we try to narrow down and choose suitable interviewees. Then, we will ask them how often do they attend to tutoring class. Also, we can find what they can gain from tutoring class, dependency on school teaching for examination and school performance after they have attended the tutoring class. We hope through the quantitative interview using questionaire in face to face mode to find out the information that proves our hypothesis between senior students in mainstream schools to attend tutoring class and poor school performance. Data Analysis After we have conducted the interview, we will use bivariate analysis to prove the relationship between different items. Bivariate analysis means the analysis of two variables in the mean time, for the purpose to determine the empirical relationship between them (Babbie, 2004). Firstly, we have to prove diffetrent items of relationship to form our conceptual framework. We have to prove that if students attending more in tutoring class with spending more, they will expect more from the tutoring classes. Then, if students can gain more in tutoring class, they will depend lower on school teaching meterials for examination. And then, if students depend lower on school teaching meterials, they will gain poor school performance. Secondly, after we can prove four independentrelationships, we can try to link up them with running SPSS to find out do they connect altogether. Lastly, if they can be connected, that means our conceptual framework is correct. But, if they cannot be connected, we will find out the reasons and factors that make the relationship unconnected. Budget Schedule

Case Study Analysis Ryanair The Low Fares Airline Management Essay

Case Study Analysis Ryanair The Low Fares Airline Management Essay The key objective of this report is to critically evaluate the strategy of Ryanair against the backdrop of the European air line industry and the bludgeoning Budget sector, in response to the challenges facing the Industry as a whole and Ryan air in particular also has evaluated the Ryan airs bid for fellow Irish carrier, Aer Lingus. This evaluation is done by using a strategic analysis of environment and the industry as well as the company, present strategic choices recommended new strategic initiatives and areas for improving strategy implementation using Macro-environment analysis, Industry analysis and Internal analysis. The analysis has been done by using significant theories such as PESTEL analysis, Porters five forces, Strategic group model, key success factors and value chain etc. knowledge on Ryanair. Through the Ryanair environmental analysis unproductive strategic decisions have been identified and finally suggest the recommendations to develop Ryanairs competitive gain in the future. (2.0) Introduction This document is based on the case provided; Ryanair the low-fairs Airline which was written by Eleanor OHiggins, University College Dublin, Republic of Ireland in 2007. Ryanair is Europes first and largest law fares airline which started 1985 by Ryan family. (Ryanair website) Its an Irish airline with head office in Dublin and its biggest operational base at London Stansted Airport in the UK (Ryanair Europes greenest airline n.d).Ryanairs has grown steadily to now in the most environmentally friendly way by investing in the latest aircraft and engine technologies which have reduced fuel burn and CO2 emissions and the implementation of certain operational and commercial decisions. According to the case the report has critically evaluated the strategy of Ryanair against the backdrop of the European air line industry and the bludgeoning Budget sector, in response to the challenges facing the Industry as a whole and Ryan air in particular also has evaluated the Ryan airs bid for fellow Irish carrier, Aer Lingus. For this evaluation as a member of the management consulting firm I have provided a strategic analysis of environment and the industry as well as the company, present strategic choices recommended new strategic initiatives and areas for improving strategy implementation using Macro-environment analysis, Industry analysis and Internal analysis from this document to the senior management team of Ryanair. The analysis of this report was done with the support of the provided case information, Ryanair website, industry related information from academic books, journals, websites, and other publicly available secondary data sources. (3.0) Overview of Ryanair Ryanair is a global airline which provides scheduled passenger airline services between Ireland and the United Kingdom. Starting in 1985 Ryanair followed the example of Southwest Airlines. It was set up with a share capital of just  £1 and a new staff base of 25. Since 1985 to now it has grown massively into one of the Europes largest low fare carrier. In 1990 the company suffered a  £20 million loss and was forced to completely restructure and a new management team was brought in headed by Michael OLeary who made major changes to the airline. Ryanair restructured itself and became a low-fares, no -frills carrier. After the next few years Ryan air significantly slashed its fares further and managed to open up many new routes. Today, Ryan Air has destinations in 26 countries with 950 routes. Also the headquartered in Dublin, employs about 4,200 people, operates with a fleet size of 120 Boeing 737-800, carries approximately 35 Mio passengers a year and had a turnover of 1,692.5 Mio in 2006 with a net profitability of about 10% (Mayor, 2007). Furthermore revenue has risen from à ¢Ã¢â‚¬Å¡Ã‚ ¬231 million in 1998 to à ¢Ã¢â‚¬Å¡Ã‚ ¬2,714 million in 2008 and net profits have increased from à ¢Ã¢â‚¬Å¡Ã‚ ¬48 million to à ¢Ã¢â‚¬Å¡Ã‚ ¬480 million, over the same period despite the worldwide recession and the high oil prices. (3.1) Vision Ryanairs CEO, Michael OLeary, has a vision of a world where the fare could drop to nothing as local communities would subsidize the airline to bring a steady traffic of business people and tourists to their region. (Ryanair Report, 1997) Mission Statement Ryanair will become Europeà ¢Ã¢â€š ¬Ã‚ ²s most profitable lowest cost airline by rolling out our proven `low-fare-no-frillsà ¢Ã¢â€š ¬Ã‚ ² service in all markets in which we operate, to the benefit of our passengers, people, and shareholders. (Mayor, 2007) Ryanair aims to offer low fares that generate increased passenger traffic with a continuous focus on cost-containment and operating efficiencies. Moreover Ryanair has main objective and other objectives to stay as the favorable and low cost airline in Europe. (Please Refer Appendix 01). Also refer Appendix 02 for financial analysis. (3.3) Critical Issues Though Ryanair has gone quite well all the way to now I have identified below critical problems through out the case. Major critical issues are; Negative public image due to aggressive CEO and unfriendly staff. Immature handling of sensitive issues such as criticizing politicians, disabled passengers Misleading advertisements and messy website. Unreasonable ancillary charges for example wheelchair charges, check in baggage charges, refund handling charges etc. Leadership issues (4.0) Environmental Analysis Environment has a great impact on functioning of any business. Environmental analysis is the process of monitoring the organizational environment to identify both present and future threats and opportunities that may influence the firms ability to reach its goals. (Certo Peter 1991). Its important to a business to adapt to the environment to be successful hence it needs to be analysis both internal and external environment. (4.1) External Environment Analysis Purpose of an external environment analysis is to identify or develop a finite list of opportunities that could benefit a firm and threats that could be avoided. Firms should be able to respond either offensively or defensively to the factors by formulating strategies that take advantage of external opportunities or that minimize the impact of potential threats. The external analysis can be divided into macro environment and industry analyses. (4.1.1) Macro Environment Analysis There are several influences of macro-environment on Ryanair within their operating countries. Political, Economical, Social, Technological, Environmental and Legal factors had created a considerable impact in macro environment on the performance in a company. This is known as PESTEL Analysis. Please Refer Appendix 03 (4.1.2) Industry Analysis Industry can be defined as a group of organization or business unit producing close substitutes (Fletcher 2003). The aim of this analysis is to assess the industry environment and answer the following questions. Whatre the forces within the industry which are determining the profitability of the industry? Howre the forces changing and expected to change overtime? How will those changes affect future profitability? For the analysis of Ryanair industry environment have used porters five forces model and Strategic group. Please refer the Appendix 04 05 (4.2) Internal Environment Analysis An internal analysis should be conducted in-order to identify the strengths and weaknesses of an organization. It also assist the firm to find-out its resources and capabilities in-order to utilize those resources to the best potential. The main objective of internal analysis for this case is to measure the Ryanairs resources in terms of other major competitors such as Easy jet and South West air lines. For the internal analysis have used value chain model and key successes factors. Please Refer Appendix 06. (4.2.1) Key successful Factors Key successful factors are some of the important factors which are necessary in business. It brings a comparative advantage to the business. It is highlighted that low-cost companies concentrate on offering the lowest prices as the first critical success factor. Although Ryanair had encountered different problems especially in line with its cost structures, the company had been able to survive and grow in the marketplace. They have implemented different marketing strategy to make the company survive in the competition and to gain a competitive position in the airline market.   Ryanair has recognised recently as the most punctual airline between Dublin and London and also recognised as the second largest airline in United Kingdom and Europes largest low-fares airline because of the strategy of it. Technology related Expertise in given industry technology Scientific technology expertise in airline industry Making Internet the primary base of distribution and marketing Distribution related Accurate filling of customers orders A strong network of communication via internet Low distribution cost Marketing related Fast, accurate technical assistance Courteous customer service Clever advertising Manufacturing related Access to adequate supplies of skilled labor A strong brand identity among the buyers Low cost marketing and distribution methods Skills related Superior work power talent Ability to develop new products and product improvements. Expertise in technology Organizational capability Superior information system Experiential top management SWOT Analysis The SWOT analysis given below is to help Ryanair to achieve their mission and objectives by capitalizing on opportunities using their strengths and reducing their weaknesses and threats. Strengths Ryanair is the 1st to launch low cost flights in Europe and has continuously maintained the low fare policy. They have a strong brand image and strong bargaining power in airport deals. Aggressive and Innovative leadership (CEO- Mr. Michael OLeary). Larger market share New fleets results in maximum aircraft utilization. Weaknesses Earn publicity through negative press reporting which affect brand image. Very poor customer relations which is damaging to the success. Low level of understanding for employees Misleading advertisements about ticket fares and destinations. In-flight mobile phones and gambling can deter some customers Opportunities Withdrawal of traditional companies from most of the less traffic intense point to point routes using regional airports. Industry growth in European air travel industry Being an fine choice of most of the market due to recession Threats Upper middle class economy travelers may seek greater value proposition than just low fares. Increasing Prices of Oil Markets and fluctuating currency issues Terrorism Impending legislations for environment protection. Recommendation. The whole analysis has summarized both pluses and minuses in the company. Through examining the Treats and weaknesses the following recommendation could be illustrates. Following strategies can be used to decrease the weaknesses and avoid threats of the company and improve its competitive upgrading. Total Quality Management The low cost strategy has hided the quality of the service. To attract and retain the customers Ryanair has to follow an effective total quality management process. Efficient total quality management values could make a great difference in the service quality. It will not only enhance the quality but also it will increase the productivity. Thus effective quality management will make the brand identity stronger and make a more brand loyalty with in customer base. Competitors Competitors like easyJet, Air Berlin, Basic Air are catering to the value market division and have established slots at some main airports and providing basic cost effective services. Later acquiring the Aer Lingus would increase Ryanairs showings in stock market and faster growth in to the value oriented market segments. Therefore Ryanair need to be more concern about the low price strategy. Customer Relationship Management In the service sector what is important is the satisfaction of the customers. Due to poor facilities and ancillary services Ryanair has lost their customer relationship. Therefore, a strong CRM strategy should be implemented to minimize the weaknesses of the company. Apart from the CRM strategies Ryanair could move on to CSR projects to draw the corporate position to the organization. (7.0) Conclusion Ryanair is the most favorable low fare airline in the Europe and with this they have been successful all the way so far. But now I can conclude from the above analysis that Ryanair have to develop a successful strategy not for only winning the low fare strategy but gaining a stable position in the value segment and in new non-European markets. References Barrett, S., (2000), Journal of air transportation of Transport Management Vol.6, pp. 13-27 (Butterworth-Heinemann; Oxford) David, F. R. (2005). Strategic Management (10th Ed.). NJ:Prentice hall Fletcher, J. (2003). Strategic Management à Ã‚ ¨ study guide and plan. Edith Cowan University. Lynch, R. (2003), Corporate Strategy, 3rd ed., Prentice Hall Financial Times Mayer, S. (2007). Ryanair and its low cost flights in Europe. University of the Sunshine Coast Queensland (Business Faculty). Retrieved April 23, 2010, from http://www.grin.com/e-book/87815/ryanair-and-its-low-cost-flights-in-europe Paul, V. (2007). French Accent Ryanair Slow on Emotion, Retrieved from April 27, 2010, from http://www.brandchannel.com/brand_speak.asp?bs_id=72 Ryanair case study analysis (2009), Retrieved from April 27, 2010, from http://ivythesis.typepad.com/term_paper_topics/2009/04/case-study-analysis-ryanair.html Ryanair and its low cost flights in Europe (2007), Retrieved from April 28, 2010, from http://www.grin.com/e-book/87815/ryanair-and-its-low-cost-flights-in-europe Ryanair Europes greenest airline. (2006). Retrieved from April 28, 2010, from http://www.ryanair.com/en/about/ryanair-and-the-environment (9.0) APPENDIX Appendix 01 Ryanair main objective is to: Offer the lowest fares at all time on all routes: Ryanair main objective is to establish itself as Europes leading low-fares scheduled passenger airline through continued improvements and expanding offerings of its low-fares service. Ryanair other objectives are to; Continue to find ways of reducing costs Though Ryanair has the lowest cost base of any of its competitors Ryanair can continue to lower its cost base as it grows even if at a slower pace. Ryanair 100% online Ryanair expect continuing to use the internet as its primary point of sale and over the next 5 years the aim is to have 100% of bookings via the internet so as to reduce the costly call centers. Increase the Frequency of Existing Routes On the moment Ryanair have an average of 3.88 flights per day per route. This figure, compared to Easyjet and traditional carriers, is very low. It means that Ryanair is losing out on business passengers who need more flexible timetables. If Ryanair can enhance the frequency on some of their routes they possibly will effectively steal some of the passengers from the traditional carriers thus increasing market share. Open New Routes in Europe There are many possible routes still un-served by low-cost carriers. Ryanair can also open routes where the competition is a more expensive for traditional carrier while attracting customers with the cheaper, no-frills option. Develop Its Smaller Continental Operating Bases Ryanair must look to other operating bases to expand their network. Although there is not the same demand outside there is still sufficient demand to make a considerable profit. Source: http://webcache.googleusercontent.com/search?q=cache:FfQQcO538yAJ:solvay.ulb.ac.be/cours/alle/BuspPresRyanair04.pdf+http://solvay.ulb.ac.be/cours/alle/BuspPresRyanair04.pdfHYPERLINK http://webcache.googleusercontent.com/search?q=cache:FfQQcO538yAJ:solvay.ulb.ac.be/cours/alle/BuspPresRyanair04.pdf+http://solvay.ulb.ac.be/cours/alle/BuspPresRyanair04.pdfcd=1hl=enct=clnkgl=lkHYPERLINK http://webcache.googleusercontent.com/search?q=cache:FfQQcO538yAJ:solvay.ulb.ac.be/cours/alle/BuspPresRyanair04.pdf+http://solvay.ulb.ac.be/cours/alle/BuspPresRyanair04.pdfcd=1hl=enct=clnkgl=lkcd=1HYPERLINK http://webcache.googleusercontent.com/search?q=cache:FfQQcO538yAJ:solvay.ulb.ac.be/cours/alle/BuspPresRyanair04.pdf+http://solvay.ulb.ac.be/cours/alle/BuspPresRyanair04.pdfcd=1hl=enct=clnkgl=lkHYPERLINK http://webcache.googleusercontent.com/search?q=cache:FfQQcO538yAJ:solvay.ulb.ac.be/cours/alle/BuspPresRyanair04.pdf+http://solvay.ulb.ac.be/cours/alle/BuspPresRyanair04.pdfcd=1hl=enct=clnkgl=lkhl =enHYPERLINK http://webcache.googleusercontent.com/search?q=cache:FfQQcO538yAJ:solvay.ulb.ac.be/cours/alle/BuspPresRyanair04.pdf+http://solvay.ulb.ac.be/cours/alle/BuspPresRyanair04.pdfcd=1hl=enct=clnkgl=lkHYPERLINK http://webcache.googleusercontent.com/search?q=cache:FfQQcO538yAJ:solvay.ulb.ac.be/cours/alle/BuspPresRyanair04.pdf+http://solvay.ulb.ac.be/cours/alle/BuspPresRyanair04.pdfcd=1hl=enct=clnkgl=lkct=clnkHYPERLINK http://webcache.googleusercontent.com/search?q=cache:FfQQcO538yAJ:solvay.ulb.ac.be/cours/alle/BuspPresRyanair04.pdf+http://solvay.ulb.ac.be/cours/alle/BuspPresRyanair04.pdfcd=1hl=enct=clnkgl=lkHYPERLINK http://webcache.googleusercontent.com/search?q=cache:FfQQcO538yAJ:solvay.ulb.ac.be/cours/alle/BuspPresRyanair04.pdf+http://solvay.ulb.ac.be/cours/alle/BuspPresRyanair04.pdfcd=1hl=enct=clnkgl=lkgl=lk) Appendix 02 Financial Analysis Appendix 03 PESTEL ANALYSIS Political In political factor focused on Government stability, Taxation policy, foreign trade regulations and Social welfare policies but in the Ryanair case according to the provided information affected to; Increase of route charge by the government In 2006, airport and handling charges increased by 21%, slower than the growth in passenger numbers, reflecting a net reduction in costs from deals at new airports and bases despite increased costs at certain existing airports such as Stansted. Increase in trade union pressure Some of the countries in Europe have formed a trade-union among each others and due to this it gives the pressure for Ryanair to do business in these countries. Furthermore the Europe Union (EU) has expanded in the past few years and it is a big factor that affects the direction and strategy planning for Ryanair. Government passed The law for carbon emission to aviation industry to compensate further taxes Ryanair replaced its fleet of old aircraft with new more environmental friendly aircraft. The newer aircraft produced 50% less emissions, 45%less fuel burn and 45% lower noise emissions per seat. UK government put on compulsory security measures and restrictions due to terrorism attacks on airlines in August 2006, UK authorities imposed severe security measures at all airports in the face of an alleged imminent terrorist plot to attack up to 10 aircraft on transatlantic routes. Economical According to the Fletcher, 2003; The health of a nations economy affects the performance of individual firms and industries. The economic environment refers to the nature and direction of the economy in which a firm competes or may compete (Fletcher, 2003, M.3, P. 4) Economical Analysis consists of GDP, Price fluctuations, unemployment trends, depreciation of U.S dollars, interest rates and economies of scale etc. In Ryanair case they have affected by; High price ceiling of petroleum products and fuels From 2005 fuel prices are increased and Ryanairs fuel costs represented 35% of operating costs in 2006 compared with 27% the year before. Energy and fuel costs are cause of uncertainty Also jet fuel cost fluctuations are unpredictable and not controllable. Social The socio-cultural environment represents the set of values, ideals and other characteristics that distinguish members of one group from those of another according to the Fletcher, 2003, M. 3, P. 3). Organizations need to be aware of these factors because they can straightly affect the way the organizations manage the operations, more importantly human resources and marketing. Change in the mode of travelling due to the terrorist attacks Because of the terrorists attacks there was a treat that passengers would choose other forms of transport such as trains rather than facing to the inconvenience and expense of checking in luggage and extra time spent in airport security queues. Increase in travelling life style and flying patterns. Technology Many new advances in technologies can affect the way businesses are competing. Technological developments represent a real opportunity for the skillful people who can understand and apply them appropriately. It also helpful to reduce its costs effectively and furthermore can maintain good relationship with customers. Technological analysis consists of new communication technologies, product innovations, new product development and application of knowledge etc. Related to the Ryanair occurred; Technological expansion Ryanair has introduced new technological environmental friendly airlines in order to make profits High fuel efficiency, less noise pollution and lessening of carbon pollution using Boeing 737 planes Ryanair tries to reduce pollution. Web sales/services Ryanair tries completely to do online check-in in the future. Environment This consists of changes in environment that can impact on industries such as tourism and farming etc. nowadays more and more people are concerned about global warming and green house gas effects. According to the case Ryanair affect environment by; Contributing Global warming though Ryanair contribute to the global warming up to some certain they have introduced new aircrafts that reduce fuel burn in 45%. Noise level controls Also they have lower the noise emission in 45% in their new aircrafts. Legal Legal analysis consists of competition law, health and safety, employment law and product safety. As in the case Ryanair affected by; Allegations of misleading advertisement Ryanair accused it of misleading passengers on its website by exaggerating the prices of its competitors in making comparisons. Safety measures; pilots and passengers In July 2006 the Irish high court found out that Ryanair had bullied pilots and forced them to agree to a new contract, pilots had to pay à ¢Ã¢â‚¬Å¡Ã‚ ¬ 15000 for retraining on a new aircraft if they left the airline. In 2006 pilots of Ryanair lodged a pay claim stating that there is significant difference in take home pay between Ryanair and Aer Lingus pilots it also claimed that training pilots were working for nothing. Also the case says Ryanair has charged more money for the insurance than its actual amount. Appendix 04 Porters Five Forces Model. This five forces model is developed by Michael Porter and it described five forces which are Bargaining power of Suppliers, Bargaining power of customers, New entrants, Threat of Substitutes and Competitive Rivalry. These forces have analyzed below according to the Ryanair. Source: http://notesdesk.com/wp-content/uploads/2009/04/porters-five-forces-model.jpg Bargaining Power of Suppliers Aircraft Suppliers Boeing is Ryanairs main supplier. There are only 2 possible suppliers of planes. They are Boeing and Airbus. Fuel Suppliers Price of aviation fuel is straightly related to the cost of oil (Ryanair controls these through hedging Regional and Bigger Airports Regional Airports have little bargaining power as they are heavily dependent on one Airline. Bigger airports, where Ryanairs competitors operate, have greater bargaining power. Ryanairs policy is to try and avoid these airports. Bargaining Power of Customers Low price Customers are price sensitive and they know about the low cost of supplying the service from Ryanair. Distribution power of travel agents was decreasing as prospects used to book tickets from internet or through direct booking. So it was a threat to travel agents, so they employed to offer complete travel solutions to customers. Direct bookings on the Ryanair website has meant that there have been savings in the region of 42.6% in marketing and distribution costs. New Entrants Some barriers to entry there are some regulations when entering to the European countries. High capital investment at the beginning of the new airlines need big financials otherwise there is a threat of losing money. Restricted slot availability makes it more difficult to find suitable airports European countries have many landing slots that were reserved or used by national carriers. Also for new entrants have a need for low cost bases. Threat of Substitutes Other modes of transport the treat of substitutes to the airline industry comes in three main forms. These are road, rail and boat service. Of these, rail would seem to suggest the maximum threat because, certainly around Europe, it offers a brilliant continental service around the main cities that Ryanair fly to. No switching costs for the customer there is no switching cost when changing the traveling mode and there is no close relationship between customers. Competitive Rivalry Most cost advantages can be copied immediately However if any company does choose to race on the same basis as Ryanair there will be heavy pressure on prices, margins and hence on profitability Low frills and low price Ryanair has a benefit over other airlines because their policy of bundling low frills and low prices together means that they are competing for the more price responsive customer. Appendix 05 Strategic Group Model Strategic group is a group of firms in an industry following the same or a similar strategy along the same strategic dimensions. (Fletcher 2003) It consists of competitors competes with similar strategic dimensions such as product, quality, target market, geographical area. Firms are competing directly with the aligned strategic groups as they hold same strategic scope. (Porter 1980) The below graph represent the strategic group analysis for the airline industry. The grouping has been done accordance to the dimensions of quality and price. 1st strategic group This is the basic strategic dimensions of this strategic group and Ryanair provides low cost fares with no frills. Ryanairs major competitor in this strategic group is Easy jet as they contain a similar resource promise in the industry. 2nd strategic group These companies targets the middle class hence they offer fares for a moderate cost and the service contain reasonable quality. The major players in this strategic group are Ethihad, Thai, Qatar and Kuwait air ways. 3rd strategic group: Emirates, British airways and Singapore airways generally targets the high end people. They provide a luxuries service with a high pricing system. According to the Strategic group Model Identifying Strategic group layers would enhance the understanding about the direct competitors, Different bases of competitive rivalry within the strategic group and also the threats and opportunities could be examined very clearly as it narrow downs the major players in the same category.

Great Religions And Philosophies. : Greek Philosophy. Essays -- essays

Great Religions and Philosophies. : Greek Philosophy.   Ã‚  Ã‚  Ã‚  Ã‚  In the 6th century B.C, there began a dualism in Greek Philosophy. The development of Greek Philosophy became a compromise between Greek monistic and oriental influences, in other words, a combination of intellectualism and mysticism. Thus began the pre-Socratic philosophy. The interests of pre- Socratic philosophers were centered on the world that surrounds man, the Cosmos. This was during the time of great internal and external disturbances in the Greek society, as it was right after the Peloponnesian war. The pre-Socratic era of Greek Philosophy came to an end when the Sophists turned their attention to man himself, delving into the moral and mental nature of man and dealing with the practical problems of life.   Ã‚  Ã‚  Ã‚  Ã‚  The ancient Greeks mirrored their nature, beliefs, morals and customs in Greek Philosophy. Through understanding Greek Philosophy, we can see how the ancient Greeks regard the world around them. Greek Philosophy filled the void in the spiritual and moral life of the ancient Greeks, where in the same place other cultures had their belief in a religion. Wisdom, in the Greek sense, included not only a theoretical explanation of the world around them, but also provided a practical guide to life.   Ã‚  Ã‚  Ã‚  Ã‚  From Homer to Hesiod, we see the reflections of the ancient Greeks and their use of Gods to fulfill their spiritual, social and psyc...

Physiological Changes Due to Risperdal Essay examples -- Psychology Me

Physiological Changes Due to Risperdal Hallucinations, delusions, paranoia, psychosis and thought disorder are all symptoms of Schizophrenia and people who suffer from these symptoms seek the treatment of atypical anti-psychotic medications. Those medicines include Risperidone (Risperdal), Clozapine (Clozaril) , Ziprasidone (Geodon) and Quetiapine(Seroquel). The purpose of these medications is to alleviate symptoms of Schizophrenia and lessen the chances of a recurrence. The basic function of Atypical Antipsychotics is to reduce the effects of blockage in the dopamine receptors and serotonin and allow communication between nerve cells. Dopamine is thought to be relevant in Schizophrenic symptoms and Antipsychotic medications act against these symptoms. While there may the reward of reducing Schizophrenic symptoms there are risks that come along with taking such drugs as Risperidone (Risperdal) and Quietiapine (Seroquel). Commons side effects that exist while taking Risperidone are dizziness, nausea, tiredness and hyperactivity. More serious conditions may include Orthostatic Hypotension which is an extreme drop in blood pressure. Patients may also experience Syncope which is related to Hypotension in that a person may experience a loss of consciousness or fainting. Quietiapine can also cause Hypotension, but with the long term use of this drug it can cause Tardive Dyskinesia which is involuntary movements of the lips, jaw and tongue. The features of this condition are tongue protrusion, lip smacking, rapid eye blinking and rapid arm movements. In the most extreme cases Risperidone has been said to cause galactorrhea which is breast growth in males and a secretion of br... ...he Young Mania Rating Scale (YMS) and assessment was measured by the change of YMS scores at the end of the study. The study showed the patients who took Risperidal improved in their YMS scores than those who took the placebo. However patients who took Risperdal reported experiencing nausea, dizziness, weight gain, and upset stomach (Titusville, N.J., Dec.10/ PRNewswire). References Retrieved: March 1, 2005 from http://www. Counseling resource.com/medication/drug- pages/risperidone.html Retrieved: March 2, 2005 from http://www. Maripoisoncenter.com/ctr/9611risperidone.html Clinical Toxicology Review Vol.19, No.2 November 1996 Retrieved: March 2, 2005 from http://www.priory.com/psych/catatonia.html Retrieved: March 3, 2005 Common use of Risperidal among Children http://www.risperdal-help.org/what_causes.php www.Schizophrenia.com

Probability: Playing Card and Vocational Training Essay

Q1). You draw a card at random from a standard deck of 52 cards. Neither you nor anyone else looked at the card you picked. You keep it face down. Your friend then picks a card at random from a remaining 51 cards. a) What is the probability that your card is ace of spades? 1/52 b) What is the probability that your friend’s card is ace of spades? (Hint: Construct the sample space for what your friend’s card can be.) 1/51 c) You turn over your card and it is 10 of diamonds. Now what is the probability that your friend’s card is the ace of spades? 1/51 Q2). Suppose that 25% of the population in your area is exposed to a television commercial of Ford Automotive, and 34% is exposed to Ford’s radio advertisements. Also it is known that 10% of the population is exposed to both means of advertising. If a person is randomly chosen out of the entire population in this area, what is the probability that he or she was exposed to at least one of the two modes of advertising? ANS: P(A) = 0.25 P(B) = 0.34 P(A^B) = 0.10. Probability that he/she was exposed to at least one mode of advertising = 0.25 + 0.34 + 0.1 = 69% Q3). A Firm has 550 employees, 380 of them have had at least some college education, and 412 of the employees underwent a vocational training program. Furthermore, 357 employees are both college educated and have had vocational training. If an employee is chosen at random, what is the probability that he or she is college educated or has had the vocational training or both? Q4). A bank loan officer knows that 12% of the bank’s mortgage holders lose their jobs and default on the loan in the course of 5 years. She also knows that 20% of the bank’s mortgage holders lose their jobs during this period. Given that one of her mortgage holders just lost his job, what is the probability that he will now default on the loan? Q5). A Recent survey conducted by Towers Perrin and published in the Financial Times showed that among 460 organizations in 13 European Countries, 93% have bonus plans, 55% have cafeteria-style benefits, and 70% employ home-based workers. If the types of benefits are independent, what is the probability that an organization selected at random will have at least one of the three types of benefits? P(A) = 0.93, P(B) = 0.55, P(C) = 0.70. P(Not A) = 1 – 0.93, P(Not B) = 1-0.55, P(Not C)= 1-0.70 P(Not A B C) = 0.07 * 0.45 * 0.30 = 0.01155 P(atleast 1 event occurring) = 1-0.01155 = 0.988.

Consumer Behavior Essay

1) How can understanding consumers’ behavior help companies sell products or services in today’s market? Please cite an example from our text or from our YouTube videos and use a personal example. As Steve Jobs states in the YouTube video, all marketing decisions revolve around your customer. Marketing is all about building profitable customer relationships by creating value for customers and capturing value in return in the form of profits. To effectively sell a product/service, understanding how your customers buy your products and services will help you determine when, how and where you should market your products/services and in turn help you grow your business by responding to their needs. Also, if you know what customers buy and how they go about buying particular products, you can more easily spot a need that has not yet been satisfied. For example, if you run a technology company and notice that many of your customers buy educational software from college bookstores, you may recognize that your customers could use a place to buy and automatically download educational software online. Steve Jobs states in the YouTube video â€Å"Give her not what she wants but give her something that she has never dreamt of, and when she gets it she recognizes it as something she wanted all the time†. A very simple example is that of ITunes, which was discovered 10 years ago. Steve Jobs noticed that music fans clearly wanted to download songs they liked in an affordable and easy way rather than driving to Best Buy or some record store to buy them on $15-to-$18 CDs. Jobs took advantage of this opportunity and came out with the iTunes Music Store, which is today the top most online music retailer, and synced it perfectly with a piece of hardware: the iPod. This eliminated the use of Walkman’s, MP3 Players and CD players. Thus, it is important to understand people’s motives (what drives them to buy), and their attitudes (how they feel about a product/service). Knowledge about these psychological characteristics helps companies design and provide products and services that their customers want and need. The book states an example of McDonalds that first started with providing low priced burgers, fries and shakes. But today, with people becoming more health conscious, McDonalds has a reworked menu that provides more choice and variety such as Chicken Nuggets made with white meat, low fat milk jugs, and a line of premium salads. When people think of McDonalds, people think of value – whether it’s a college student buying a burger for a couple of bucks r a working women at the drive through grabbing a breakfast latte that’s a dollar cheaper than Starbucks. I would like to give a personal example of me shopping at the department store called Safeway. I was a frequent shopper at Safeway and every day I would receive emails regarding the deals and discounts on the products I purchase the most. I would also get emails with recommended products to buy and Safeway was able to do this by keeping track of my shopping history. I would actually get lured by reading these emails and go to the store to buy the recommended discounted products. Marketers can benefit from an understanding of consumer behavior so that they can better predict what consumers want and how best to offer it to them. The importance of understanding the consumer behavior is that to know and understand the preferences of different consumers which will enable the marketers to form the marketing strategies accordingly. Businesses that cannot understand how a consumer’s mind operates will have a more challenging time figuring out how to target a campaign that will attract or catch attention. In order to make the right decision, marketing managers must know how their consumers will react. Before introducing/repositioning any product/service, you must first ask questions like, do people want it? Are there enough people who want it so that it will be profitable to produce that product? Do the people who want it have the economical ability to pay for it? Another important point is that when you know how customers behave in relation to the products you’re selling, you have a better understanding of how to provide good service to them, increasing the chance that you’ll have repeat customers. For example, if you know that customers tend to come to your restaurant because they can get healthy food without waiting for a long time, you could continue training your staff to be as efficient as possible. Identifying the buying behavior of the target market and catering to those behaviors is integral in today’s complex society. 2) How can connecting with a culture help influence consumer behavior? Can you give us an example from your personal experience? A people’s culture includes their beliefs, rules of behavior, rituals, style of dressing, religion, etc. Culture is an external factor influencing consumer behavior. Since people with different cultures have different values, they will have different buying habits. A particular company’s marketing strategies should reflect the culture that is being targeted. Failing to do so can result in lost sales/profits/opportunities. Before advertising or introducing any product/service, it is very important to understand the local culture of the population of a particular area, city, or country. For example, the You Tube Video shows that Thailand and Malaysia have a family oriented culture and so the elderly and tradition play a huge part in the commercials as compared to Australia having a very individualistic culture focusing the advert on youngsters. Another example would be if a given country discourages the use of tobacco or alcohol, the potential pool of consumers for these products would be small. Therefore, companies which distribute these types of products should limit advertising in such areas, and focus on other countries where there are no restrictions on the use of such products. A personal example would be that of McDonalds. In India, meat consumption is prohibited in Hinduism. McDonalds did spend time developing a food menu targeted towards no meat eaters. They now offer a lot of vegetarian options, making it a happy place for both: meat and no meat eaters. Another example would be comparing North India and South India. I have to been to both, and have noticed a vast difference in the culture. People in North India prefer breads over rice which is a favorite with people in South India and East India. So many restaurants in South India have 99% rice based dishes. If a restaurant in South India serves more bread based food options, it would likely make less business as compared to restaurants serving rice based dishes. As part of their efforts to convince customers to purchase their products, marketers often use cultural representations, especially in promotional appeals. The objective is to connect to consumers using cultural references that are easily understood and often embraced by the consumer. By doing so the marketer hopes the consumer feels more comfortable with or can relate better to the product since it corresponds with their cultural values.