Business Structure Advice Essay Example for Free

Business Structure Advice Essay Owner- Congratulations for taking the first step in starting your own business. I am confident that I can provide you the necessary information that you need in order to help you make the best decisions for you and your new business venture. Developing a detailed business plan is key in starting a successful business. When forming a business you will first need to decide on the business structure. In your email you stated that you were on whether or not you wanted partners. You have the following options for business structures: sole proprietorship or partnership. A sole proprietorship is the basic type of business structure. It would consist as you being the owner only to run and operate the business. The advantages of this business structure is that it is easy to start-up, the start-up costs are low and the owner receives all profits from the business. Also, the owner can upgrade to a partnership or corporation easily in the future. A disadvantage to this business structure is the proprietor is responsible for debts and obligations. Business earnings for a sole proprietorship is taxed once, thus making filing taxes not complicated. Funding for a sole proprietorship is usually from personal finances and friends and families. This is due to limited financial opportunities from lending institutions and investors. A partnership involves you and at least one other person. There is two types of partnerships: general and limited. In a general partnership owners are equal and split responsibilities accordingly. In a limited partnership the limited partner have a limited role. The advantage of a general partnership is that the business is easy to start and profits and losses are divided among the partners. A disadvantage is that all partners are liable for debt. Another disadvantage is that all partners are bound to actions or decisions made by one partner. Last, this is not a good structure if the partnership wants large capital. For this type of business structure, each partner is taxed. A limited partnership is ideal for who has a preference of not having an active role in the company. Advantages include: minimum government regulations, limited partners not held responsible for debt and liabilities, and gener al partners have complete control. Disadvantages for a limited partnership are: more expensive to create compared to a general.

Science an Technology as Engines of Economic Growth ad Development Essay Example for Free

Science an Technology as Engines of Economic Growth ad Development Essay Social Consequences of the Industrial Revolution The Industrial Revolution brought many changes to western civilization. Two of the most significant social consequences of the Industrial Revolution are urban crowding and worker safety. Migration of workers to urban areas, where factory work was available, was a major contributor of over-crowding in these areas. This gave rise to increasing crime rates, housing, and sanitation issues (Zonderman, 1992 ). Unemployment was high and there was no job security. Injured workers were replaced without compensation. With the Industrial Revolution, child labor was common, as machines simplified the work and it was cheaper to pay children. Injury rates among factory workers were high. Small hands were easily caught in the machines. In the early 1830’s legislations were put in place to protect the workers (Honeyman, 2008). These early factory laws were concerned with health, safety, working hours and working conditions. Factory conditions were regulated by the states and in1833 the Factory Act was passed (Honeyman, 2008). The Industrial Revolution and Capitalism Capitalism is an economic system in which means of production are owned by individuals or private companies, who invest money to make a profit. Capitalism focuses on the free market with little or no governmental regulations. Prior to the Industrial Revolution, agriculture was the primary means of support and people worked within their homes (Zonderman, 1992 ). With the event of the Industrial Revolution society changed to one of commodities and production and the need to make individual profit. Machines gave rise to increased productivity and reduced the need for skilled or  specialized laborers (Zonderman, 1992 ). The ability to produce goods on a large scale allowed for these goods to be sold for less. Individuals or companies with money could invest in newer technologist, finding faster and cheaper ways to produce goods. This destroyed small, local businesses, forcing them to seek employment as factory workers. With more people seeking employment, and no minimum wage, laborers were paid cheaper wages. Child labor was prevalent and work conditions deplorable. There were no equal or fair compensation for these workers. All profits were kept by these individuals and companies increasing their wealth. Capitalism and Communism. Communism focuses on the division of wealth as a community, sharing profits and losses. The goal of the communist theory, is equality among all members of society. The communist theory was born to counteract the abuses of the capitalist society, advocating for workers’ rights (Hands, 2011). Karl Marx believed that capitalism was just the latest form of exploitation in a long list of tyrannical rule (Hands, 2011). Marx ideal society, based on the communist theory, would see the disappearance of class structure, equal rights for men, women, and children, equal and adequate housing for everyone, with everyone working for the benefit of each other. Differences between Capitalist and Communist Philosophies. The capitalist society promotes individual gains and give rise to a class system. Individuals own the means of production and invest their capital to make a profit for themselves. These profits are not shared with the working class who help to make the profits. The communist theory, on the other hand, promotes community properties and equality for all. Businesses and properties would be government owned and everyone share equally in the profits and losses. Benefits are based on individual needs (Hands, 2011). The capitalist philosophy gives rise to a distinct class system, where the elites are the rulers (they own the wealth, therefore they make the rules). The wealthy investors had access to the best schools, housing and medical attention as they could afford to pay for the services. In the communist philosophy, the class system would disappear. Everyone work for the good of the community and enjoy equal, good quality housing, education, and medical  care. References Hands, G. (2011). Understanding Marx . London, GBR: Hodder Education. Honeyman, K. (2008). Book Cover Child Workers in England, 1780-1820 : Parish Apprenticeship and the Making of the Early Industrial Labour Force. Abingdon, Oxon, GBR : Ashgate Publishing Group . Zonderman, D. A. ( 1992 ). Book Cover Aspirations and Anxieties : New England Workers and the Mechanized Factory System, 1815-1850. Cary, NC, USA : Oxford University Press .

Consequences of psychologic fixation Essay Example for Free

Consequences of psychologic fixation Essay The first stage of psychosexual development is the oral stage, spanning from birth until the age of two years, where in the infants mouth is the focus of libidinal gratification derived from the pleasure of feeding at the mothers breast, and from the oral exploration of his or her environment, i. e. the tendency to place objects in the mouth. The id dominates, because neither the ego nor the super ego is yet fully developed, and, since the infant has no personality (identity), every action is based upon the pleasure principle. Nonetheless, the infantile ego is forming during the oral stage; two factors contribute to its formation: (i) in developing a body image, he or she is discrete from the external world, e. g. the child understands pain when it is applied to his or her body, thus identifying the physical boundaries between body and environment; (ii) experiencing delayed gratification leads to understanding that specific behaviors satisfy some needs, e. g. crying gratifies certain needs. [5] Anal stage The second stage of psychosexual development is the anal stage, spanning from the age of eighteen months to three years, wherein the infants erogenous zone changes from the mouth (the upper digestive tract) to the anus (the lower digestive tract), while the ego formation continues. Toilet training is the childs key anal-stage experience, occurring at about the age of two years, and results in conflict between the Id (demanding immediate gratification) and the Ego (demanding delayed gratification) in eliminating bodily wastes, and handling related activities (e. g. manipulating excrement, coping with parental demands). The style of parenting influences the resolution of the Id–Ego conflict, which can be either gradual and psychologically uneventful, or which can be sudden andpsychologically traumatic. The ideal resolution of the Id–Ego conflict is in the childs adjusting to moderate parental demands that teach the value and importance of physical cleanliness and environmental order, thus producing a self-controlled adult. Yet, if the parents make immoderate demands of the child, by over-emphasizing toilet training, it might lead to the development of a compulsive personality, a person too concerned with neatness and order. If the child obeys the Id, and the parents yield, he or she might develop a self-indulgent personality characterized by personal slovenliness and environmental disorder. If the parents respond to that, the child must comply, but might develop a weak sense of Self, because it was the parents will, and not the childs ego, who controlled the toilet training. Phallic stage The third stage of psychosexual development is the phallic stage, spanning the ages of three to six years, wherein the childs genitalia are his or her primary erogenous zone. It is in this third infantile development stage that children become aware of their bodies, the bodies of other children, and the bodies of their parents; they gratify physical curiosity by undressing and exploring each other and their genitals, and so learn the physical (sexual) differences between male and female and the gender differences between boy and girl. In the phallic stage, Latency stage[ The fourth stage of psychosexual development is the latency stage that spans from the age of six years until puberty, wherein the child consolidates the character habits he or she developed in the three, earlier stages of psychologic and sexual development. Whether or not the child has successfully resolved the Oedipal conflict, the instinctual drives of the id are inaccessible to the Ego, because his or her defense mechanisms repressed them during the phallic stage. Hence, because said drives are latent (hidden) and gratification is delayed — unlike during the preceding oral, anal, and phallic stages — the child must derive the pleasure of gratification from secondary process-thinking that directs the libidinal drives towards external activities, such as schooling, friendships, hobbies, etc. Anyneuroses established during the fourth, latent stage, of psychosexual development might derive from the inadequate resolution either of the Oedipus conflict or of the Egos failure to direct his or her energies towards socially acceptable activities. Genital stage The fifth stage of psychosexual development is the genital stage that spans puberty and adult life, and thus occupies most of the life of a man and of a woman; its purpose is the psychologic detachment and independence from the parents. The genital stage affords the person the ability to confront and resolve his or her remaining psychosexual childhood conflicts. As in the phallic stage, the genital stage is centered upon the genitalia, but the sexuality is consensual and adult, rather than solitary and infantile. The psychological difference between the phallic and genital stages is that the ego is established in the latter; the persons concern shifts from primary-drive gratification (instinct) to applying secondary process-thinking to gratify desire symbolically and intellectually by means of friendships, a love relationship, family and adult responsibilities.

Lml Swot Analysis Essay Example for Free

Lml Swot Analysis Essay LML Ltd is an India-based Company that manufactures, sells and exports motorized two wheelers. The company operates in one segment, namely motorized two wheelers. They offer scooters, motorcycles, and mopeds, as well as spares and accessories. They are having their manufacturing facilities located at Kanpur in Uttar Pradesh. LML Ltd was incorporated in the year 1972 as Lohia Machineries Ltd to manufacture machinery for the synthetic fibres industry. In the year 1983, the company commenced production of 100 cc scooters in technical collaboration with Piaggio VE, SpA, Italy. In the year 1984, the company incorporated a new company under the name and style of Vespa Car Company Ltd to manufacture 200,000 scooters and 50,000 three-wheelers annually. STRENGTH Vespa is an Italian line of scooters manufactured by Piaggio. The Vespa has evolved from a single model motor scooter manufactured in 1946 by Piaggio Co. S.p.A. of Pontedera, Italy—to a full line of scooters and one of seven companies today owned by Piaggio—now Europes largest manufacturer of two-wheeled vehicles and the worlds fourth largest motorcycle manufacturer by unit sales. Known for their painted, pressed steel unibody which combines a complete cowling for the engine, a flat floorboard , and a prominent front fairing , The Vespa was the first globally successful scooter. ï‚žVespa first came to India in 1960 with a collaboration with Bajaj Auto. ï‚žThe technical collaboration ended in 1971 and Bajaj and Vespa parted ways. ï‚žVespa at that time was considered an iconic scooter brand globally and the brand was owned by Piaggio. ï‚žPiaggio then joined hands with the Kanpur based Lohia Machines Ltd ( LML) in 1983 and started to roll out the Vespa range of Scooters. ï‚žBy that time Bajaj was ruling the market with the iconic Chetak . WEAKNESS Opportunities and Threats LML stands for the highest standards of technical expertise, product innovation and has one of the ï ¬ nest R D capabilities, particularly relating to designing, rapid prototyping, CAD CAM, tooling and industrialization. It is harnessing these strengths and its vast experience in the two-wheeler business coupled with a aggressive business strategy for  its revival and turnaround. The Company is perhaps the ï ¬ rst in the world to obtain Euro III certiï ¬ cation for its 2-stroke vehicles and subsequent to restart, it has also received the upgraded ISO 9001-2008 certiï ¬ cation from DNV.

What constitutes an outstanding presentation instead of a mediocre one Essay Example for Free

What constitutes an outstanding presentation instead of a mediocre one Essay Presentations, are defined as the simplest collection of ideas that help persuade, inform or motivate people (Stevenson, 2002, p. 3). In the past, presentations were simply concerned with a monotonous display of bullet-point lists, to convey the speaker’s train of thoughts. Today, technology has encouraged a broad variety of presentation mediums: standalone presentations on the Web, loop presentations to show repeatedly at trade show booths, burning of CD’s of a presentation to distribute to a wide audience, adding of sound, animation, and even video to the slides (Stevenson, 2002, p. 3). The purpose of this paper is to outline what marks the difference between an outstanding, and a mediocre presentation, and to analyze the critical factors that go in the making of one. The term â€Å"outstanding† doesn’t really convey the right impression since the overall aim of effort applied in making a presentation, is to achieve some sort of desired result. For this, we shall use the term â€Å"winning† presentation for our remaining discussion. The desired result examples can be as follows (Stevenson, 2002, p. 3): 1) Outlining of timeline and deliverables of the product launch to the manufacturing team. 2) Teaching the sales force about the feature and benefit of the new product so that they can sell better. 3) To make a business case for the potential market for the new product to gain financing from investors. 4) To introduce new products to customers. So, what makes a presentation mediocre? Different communication experts have their own opinions drawn from personal experience. But, for the sake of all-inclusivity, we shall outline the most typical characteristics of mediocre presentations that not only fail to produce results, but are commonly labeled dull, dry and boring- no euphemism required for a situation where the audience is compelled to doze off because the presentation failed to capture their interest. ANR Communication Services at the University of California, have outlined Seven Deadly Sins of PowerPoint presentations (ANR, 2006): 1) Length: It is not necessary to utilize the whole time allotted, in fact the winning presentation should always aim at delivering a message as fast as possible. The common refrain is that some speakers tend to â€Å"warm-up† with a windy introduction that noone bothers to pay attention to. It is always advisable to hit bottom-line directly, and come â€Å"straight to the point†. 2) Bad visuals: Bad visuals come in several categories, but their general definition lies in a sheer ignorance of aesthetics. E. g. using elaborate graphics which have no connection to the subject matter, and were included just in order to cast an impression of technical know-how. Other examples are sandwiching too much information in very little space, and using illegible fonts against an atrocious background. Other sins are: 3) Not sticking to the main point: Too many speakers have a habit of digressing from the subject, and beating around the bush, an exercise that can be really testing on the audience’s patience, and defeat any chances of success with the presentation. 4) Too many numbers: Even technical presentations can do better without an overdose of figures and numbers. It is a common misconception for many people, that a bombardment of numeric data using charts and graphs would illustrate the monumental effort they put in, in order to create the presentation. Charts and graphs, and figures are meant to support some conclusion, but in no way should they be the only reason for the presentation to exist. 5) Technical failure: Too many presentations have been ruined due to glitches such as the Projector not working (that too after spending considerable time in making one presentation). It is always advisable to double-check before final show. 6) Not summarizing: If the presentation fails to summarize the key points discussed, the entire purpose is defeated because audience memory is short. The speaker needs to tell the audience what was the underlying conclusion for them having met. 7) Inadequate rehearsal: This goes with Point no. 1 and 6. Other useful ideas worth mentioning are David People’s recollections from interactions with IBM executives (People, 1992, p. 20): 1) Showing information, and then â€Å"apologizing† in advance – it conveys the impression that the speaker is not confident about the subject matter, and kills the very purpose of presentation. 2) Not explaining any reason why the subject has any value to the audience – such an act can convey a total disregard for audience time. In order to round up our discussion on mediocre presentations, it is important to mention common technical characteristics of such presentations (OneVision UK, 2004): 1) Slide transitions and sound effects; when unnecessary they can become a pain in the neck for they divert the focus of the audience from the central theme. 2) Standard Clip-Art which shows a clear lack of creativity on behalf of the presenter who could have done better by including more relevant graphics. 3) Presentation templates – unless there is no other alternative, these should be best avoided. 4) Reading the presentation – a speaker should have extempore communication skills, otherwise the presentation can be very boring. A winning presentation does not repeat the common fallacies mentioned for mediocre presentations as above. Also, a winning presentation has a persuasive style that impresses with its tone, content, representation and output (People, 1992, p. 45). To tell the difference between the two, Tom Sant from the American Management Association, reviews the scope and utility of a winning presentation, which should take into account the following considerations (Sant, 2004, p.12): 1) It is not a blind price quote. 2) It is not a bill of materials, project plan or scope of work. 3) It is not about the history of a product. The watchword, here is â€Å"influencing† of client (Sant, 2004, p. 17). Each time a presentation is made, the objective is in terms of thinking about the long-term influence that the presentation will have on the client, something that requires a lot of introspection on part of the presenter. Thus, presentations should be looked at as â€Å"tools and opportunities† (Sant, 2004, p. 17) rather than a summary judgment on a particular subject. Having clarified the differences between the two types of presentations, we shall look into the key ingredients of winning presentations. Structurally, a winning presentation comprises of two parts: the formal (one-way) episode followed by a question and answer session (two-way) (Gilchrist Davies, 1996, p. 3). As a bench rule, the presenter must allow at least 3 times the time allotted for one-way communication. This time is utilized for discussions, development of conceptual ideas, generating feedback, and general brainstorming. Also, a competent presenter is able to perform well in three areas of communication (Gilchrist Davies, 1996, p. 5): 1) Non-verbal i. e. body-language. 2) Verbal i. e. fluency of language and intonation. 3) Visual i. e. computer screens, slides and paper-based accompaniments. A competent presenter must have enough behavioral science knowledge so that he is able to control the crowd, in case a heated argument is generated. Contentwise, a winning presentation offers ample room for independent thinking, and allows plenty of flexibility in terms of omissions and adjustments. The objective is, that the presentation must â€Å"flow† in terms of ideas, an exercise that builds continuous credibility for the presenter (Sant, 2004, p. 29). Thomas Leech, at the American Management Association, has identified the following guidelines to delivering a winning presentation, which he calls â€Å"fundamental keys† (Leech, 2004, p. 11): 1) Prior preparation: According to several top-key executives, the biggest blunder a presenter makes when he declares that he didn’t prepare well. 2) Self-belief: It is important to convey â€Å"sincerity and honesty† through the effort made. 3) Knowing one’s purpose – the bottom-line. 4) Having a focused central theme: The audience came with a purpose. It is important to shell out the central theme at the very start of the presentation, so that people are able to develop connections. 5) Knowing your audience and tailoring the presentation according to their needs: A presentation has to be varied depending upon the possible expectations of audience. Also, age-groups have to be taken into account. Other fundamental keys are: 6) Early summarizing for time-pressed audience. 7) Reinforcement of central belief: The central theme should be backed up with substantial evidence, to make the presentation idea seem rock-solid. 8) Visual effects: It is important to ensure that visuals add, and not blur presentations. 9) Consider Murphy’s Law: This is what happens in real-life scenarios. According to Murphy’s First Law, if anything can go wrong, it will! So, it’s always advisable not to take chances with defective areas of presentation. 10) Making the delivery personal and passionate: A competent presenter is always able to connect with the audience. Instead of begging the question, he tries to convince the soundness of his ideas through passionate and compelling discussions, the most successful ingredient of winning presentations. That was presentation, but from a preparation point of view, a successful PowerPoint presentation must undergo a preliminary review, keeping following things in mind (Negrino, 2005, p. 9-107): 1) Writing the presentation: It is always advisable to start with an outline of the entire content, and using features like the Research Pane to make slides. 2) Gathering images and sound files: The graphics and animation part should be done, avoiding the loopholes mentioned in mediocre presentations. 3) Picking a design: It is important to pick a slide design, apply the layouts, and adjust text location for aesthetic appeal. Other attributes are: 4) Working with text: Editing slide text, formatting slide text (font, color, etc. ), aligning slide text (left, center, justified), changing line space (again it depends on aesthetic requirements.), using numbered (bulleted) lists, adding hyperlinks and text-boxes, 5) Illustrating the presentation: This involves adding images, clip art, using the drawing tools, adding relevant diagrams, charts, tables etc. 6) Making it move: This envisages adjustments in slide order, setting slide transitions, adding custom animation and summarize slide effects. 7) Preparation: The presentation should always be reviewed by a colleague, especially if it’s very important. It is useful to make printed notes for the speaker, and slides and handouts to the audience. Summary: On a final note, the weight of a good presentation, apart from key points mentioned in this paper, depend a lot on the individual presenter’s qualities, what are known as â€Å"gestures† (Arrendondo, 1991, p. 73). It is important to state that appropriate gestures and movements add meaning to a message, and mark the difference between a â€Å"winning† and a â€Å"mediocre† presentation. The gestures should convey a positive energy, and enthusiasm in the subject, and be manifested through the presenter’s self-belief.

Explain the Principal Sociological Perspectives Essay Example for Free

Explain the Principal Sociological Perspectives Essay The functionalist approach in regard to health and ill health came from Talcott Parsons. Talcott Parsons urged that people must be health for the society to function well. He continued to verify that illness is a form of unaccepted behaviour and people who are ill play the sick role. Moreover, his approach towards these members is that the state comes with responsibilities. The rights that are related with the sick role include; People expect to be excluded from normal roles for that period of time. or duties e. g. work, house chores and also to be nurtured. The family play an important role in caring for the sick person. Responsibility of the sick role is; the sick person has to take good care of wellbeing in order to recover and return to normal duties. The functionalist contrast with the with government views regarding illness, that the society will be ineffective with sick people. Major strategies must be considered for the society to function. The Marxist approach: Concerning health, illness and health and social care services that are offered, the Marxist conform that this is an advantage to those in the high class. The government continue to allow advertisement of products that cause ill health and junk food. Moreover, factories manufacture dangerous products and cars cause air pollution. The functionalist view ill health as something that happen any time, whereas theorists say ill heath is a result of differences in the society. For example in areas of poverty there is high rate of unemployment. The government play a small role to eradicate issues that are associated with illness. Therefore people who are privileged benefit in the society. The Interactionist or social action approach: The interactionist approach is focused on the steps that an individual say about the illness, whether the illness existed or not. There are people who are seriously and do not consider themselves to be ill. There can be consequences to the sick person of being labelled ill. The interationists do not consider structures and institutions. However, they look on difficult relationships between people. Family, friends and professionals influence the individual’s declaration of being ill. The interactionist was criticised of leaving the causes of illness and focus on relationships and negotiations that occur. The approach ignores medical reports and environmental factors like depression, poverty and pollution. Concept of health Health is the state when there is no disease. Parson explained health which was proposed by the Who in 1974, as the condition of being physically, intellectual and spiritually fit. The absence of disease received negative report that gives no attention to individual’s physical, emotional and intellectual health. Car providers apply the holistic approach to care and support heath care users. Health care providers view themselves to deal with needs of patients instead of recognised matters. Three strands that were identified by Blaxter are; positive – when a person is fit and well: negative – health is being without pain or discomfort and functional – health is the ability to carry out daily tasks. Models of health Biomedical model The biomedical model originated from Western countries, the model supports the National Health Services. Health is considered as disease not found and professional help is required. The aim of professionals is to treat illness and the model so not focus on patients. Sociologists say look less on environmental factors that may cause ill health. The biomedical model focuses on the ill person instead of environmental and social factors. The biomedical model relates with the functionalist perspective. The functionalist perspectives say that illness cause the society be ineffective. The sick role has responsibilities to cooperate with the medical doctors. The socio-medical model The socio-medical model of health pays attention on environmental and social factors that lead to health in in the community. Researchers obtained information that life expectancy has increased and death rate is falling. The National Health Services provide free medical services. The report support that social factors cause ill health. The socio-medical model fits with the conflict theorists. Conflict theorists identified that there is lower life expectancy and increasing rates of illness people with low income and areas of poverty. Less privileged people have a poor diet and they live in areas where there is pollution. Although politicians identify plans to help people with illness they do not want to contribute. Biomedical model look on diagnosis, whereas the socio-medical focus on environmental factors that cause illness.

Issues facing european low cost airlines

Issues facing european low cost airlines As predicted in the beginning of the millennium year by the International Air Transport Association, the low cost airline sector has grown at a rapid pace during the last decade from carrying 6.3% of the domestic and international passengers within Europe in 1999 predicting to increase to 16-18% in 2005 and has become the order of day in Europe. Although the European airline sector was dominated by flag carriers such as British Airways, Lufthansa, Air France etc. with a share of 70%, this fact transformed with the deregulations coming into effect, increasing the need for an optimal model of operation. That is, as the average airfares in the low-cost airlines sector account for just 3% of the average monthly EU industrial wage, customers turned towards these airline services (Datta Chakravarty, n.d). 3.0 Ryanair Profile in brief Ryanair Airlines, founded by the Ryan family was initially a full service conventional airline in 1985 which was introduced as an alternative travelling between Ireland and the UK to then state monopoly Aer Lingus. However due to financial issues it successfully restructured itself in early 1990s as the first low-fares, no frills carrier in Europe modeling based on Southwest Airlines. The responsibility of Ryanair was taken over by a management team lead by Michael OLeary and was soon floated on both Dublin and London Stock Exchanges in 1997 and admitted among NASDAQ 100 (OHiggins, 2007). Ryanair as a leading low-fares airline offers cheap flights to 150 destinations up-to-date along 1000 low cost routes and provide its customers with cheap and fast air travel excluding fuel surcharges with 100% possibility for online check-ins (Ryanair website, n.d). Although Ryanair has not published its vision and mission clearly, they look to find the big picture and set a broad direction and OLearys direction is to be the largest Low Cost Leader in the European airline industry. This vision is supported by absolute dedication to low cost performance in every element of the value chain, quick gate turnarounds, nonunion operations, performance-based incentive compensation plans, standardization on one type of aircraft, and flying (in most cases) to secondary airports, which provides significant savings for Ryanair (Box Byus, 2007). 4.0 Internal Analysis 4.1 Organizations Strategic Capability Analysis Ryanair has positioned itself as the largest low-fares carrier in Europe and as a business which returns value for money to its fare-concuious leisure and business customers. That is, as Ryanair explains, At Ryanair we guarantee you the lowest air fares on the internet. However our success is due not just to our low fares but also a winning combination of our No.1 on-time record, our friendly and efficient people and our new Boeing 737-800 series aircraft (Puget, 2003) which all add up to its value. Its ancillary services improve its value which is 13% of the total revenue. Although there are low-fares airline services in the European market due to the effectiveness of Ryanair it has been able to become market leader with 29.9% of market share in 2006. Their competitors have not been able to effectively copy the low cost strategy and usage of secondary and regional airports. Inimitable Organised Ryanair holds its uniqueness in its operating strategy which is based on low-cost. It adopts point-to-point flights to secondary or regional airports which no other service follows and occupies a one-way pricing policy which eliminates direct comparison with competitors (Ryanair, n.d). Ryanair is well organized within its low-cost strategy. It offers 100% online check-ins and flies to 150 European destinations along 1000 routes. There is no physical check in where passenger is required to forward his passport and reference number (Marketing Teacher Ltd, n.d). It has one-way pricing strategy which eliminates minimum stay requirements within airports (Ryanair, n.d). Valuable Rare 4.2 Company Resources The resources of Ryanair could be categorized and explained according to the following. Type Ryanair resources Physical resources Head office at Dublin airport Ireland 202 Boeing 737-800 aircrafts with 189 capacity 150 destinations through 1000 routes (as at 2010 April) Financial resources Total assets worth à ¢Ã¢â‚¬Å¡Ã‚ ¬4,634.2 million Shareholder equity of à ¢Ã¢â‚¬Å¡Ã‚ ¬1,992 million Total operating revenues worth à ¢Ã¢â‚¬Å¡Ã‚ ¬1,693 million (all as at 2006 March) Human Resource Over 6,300 employees (2008) CEO Michel OLeary Intellectual resources Market share of 29.9% (2006) Customer base of 34.9 million (2006) Largest travel website in Europe The fifth most recognized brand on Google Most profitable airline in the world based on operating and net profit margins on a per-airplane and per-passenger basis (2006) 4.3 Company Competencies No frill, low cost leadership could be considered the most significant aspect of Ryanair and thereby cater from low to middle level customers The ancillary revenue methods such as accommodation services, care rental, in-flight sales etc. which add up to 15.3% (2006) which had a 36% increase during 2005-2006 Possessing the preemptive advantage and being the market leader provides opportunity to expand into other markets including USA, Asia and Africa. Allowing internet access to its consumers leads to elevate sales and reduce the per-units cost Point-to-point short haul flights and usage of secondary and regional airports reduce passenger congestion and thereby avoid high airport charges. The personality of Michel OLeary has a great impact on the success of Ryanair where he personally looks into unique marketing strategies. 4.0 Industry Analysis 4.1 Porters Five Forces 4.1.1 Competitor rivalry -High and increasing The direct and main low-cost competitors of Ryanair include easyJet, Air Berlin, Germanwings, Lufthansa and Tranavia and the industry was joined by approximately 60 new low-cost airlines in 2004 (Experience Festival, n.d). A major reason for the development of this sector was the airline deregulation in 1997 due to which many companies were attracted towards the industry. This resulted in full-service airlines adopting the low-cost strategy eg. Aer Lingus 2002. The economical recession increased the aggressiveness of all competitors as they were compelled to survive in the market which resulted in frequent flyer programmes by many competing businesses including Lufthansa, Aer Lingus etc (flyertalk, n.d). However the attractiveness of the industry is high for Ryanair due to its low-cost structure, use of secondary airports and first-mover advantage along with experience of almost 2 decades. 4.1.2 Threat of new entrants Moderate Although it is accepted that the European budget airline industry is healthy with huge potential and incremental growth, the effect on Ryanair from new entrants could be considered as moderate due to its position in the market, its strong brand name and economies of scale achieved with time. For instance, Ryanair saved 42.6% of marketing and distribution costs through direct bookings in 2002 (Brophy George, 2003). Although the deregulation practices minimized the barriers of entering the industry challenging the market leader would consume both time and resources of the new companies. 4.1.3 Bargaining power of suppliers Low to Moderate Types of suppliers of Ryanair would mainly be fuel suppliers, aircraft suppliers, airport authorities and suppliers of support services. Travel agents would not count at present due to on line bookings. Ryanair has no control on fuel prices which is totally governed by world trade and Middle Eastern countries. However it has a very healthy relationship with the main aeroplane supplier, Boeing (Brophy George, 2003) which also provides the company with ancillary goods and services including technical support and training, spare parts support, training of flight crew etc. Accordingly it could be said that the power of suppliers is at low to moderate level. Eg. Ryanair cancelled its contract with OnAir, the supplier of the on board mobile communication service due to financial issues (Robertson, 2010). 4.1.4 Bargaining power of consumers High The passenger base of Ryanair was 34.9 million in 2006 and 58.5 million in 2008 (Ryanair, n.d) and increasing due to recessionary effects and current recovery stage resulting in attraction towards low-cost air travel. As Brophy and George (2003) explain, the power of buyers depends on standardization of product, elasticity of demand, brand identity and the quality of service. The switching cost is very low for customers due to the parity of services and online bookings. Accordingly Ryanair is compelled to practice competitive pricing. 4.1.5 Threat of substitutes Low to Moderate The major substitutes for air travel in Europe are rail, road and to some extent boat travel. With advantages such as ability of localization, easier accessibility along with safety railway is significant but may take longer to reach the destination. Ryanair with its low-fare structure is comparatively cheaper than railway which directly substitutes its services through excellent continental services. Road travel would provide similar benefits but Ryanair could overcome it through emphasizing on effective short haul schedules. Development in communication could also be a threat to some extent as business professionals could communicate through video conference etc. from one corner of the world to the other instantly sitting at their office desks. 5.0 Macro-environmental analysis 5.1 PESTEL analysis 5.1.1 Political Government laws and regulations regarding increase of airport landing charges The law for carbon emissions passed by the government on the aviation industry charging environmental taxes EU regulation to reduce the inconvenience caused to passengers by delays, cancellations and denied boarding where airlines are to provide standardized and immediate assistance to them Severe security measures imposed by UK authorities due to terrorist attacks 5.1.2 Economical Real GDP growth rate of EU at a reducing trend since 2007 -4.2% in 2009 (eurostat, n.d) Reduction in inflation rate of the EU from 3.7% in 2008 to 1.0% in 2009 (eurostat, n.d) Recessionary effects and current practices for recovery and depreciation of the US dollar 5.1.3 Social Increase in numbers of business travellers Negative perceptions on air travel due to safety issues Attraction to low-cost airlines after the economic recession 5.1.4 Technology Internet competition for online bookings Fuel efficiency, low carbon emissions and low noise emissions from Boeing aircrafts Other technological expansions e.g. Web sales 5.1.5 Environmental Cancellation of thousands of flights due to spread of volcanic ash from Iceland Strict regulations on carbon emissions Considerations on global warming and noise pollution 5.1.6 Legal Laws relating to airport charges and route policies Safety measures taken by governments due to terrorism regarding passengers and airline staff Regulation regarding misleading advertising 6.0 SWOT Analysis 6.1 Strengths Brand image and reputation Ryanair possesses the privilege of being the initial company to the low-fare air travel industry in Europe and thereby has the advantage of being the First Mover or preemptive mover. Most importantly as the market leader Ryanair presents its brand as a bundle of functional benefits including punctuality and efficiency (Puget, 2003). Pricing strategy As the first low-fares airline in Europe their pricing strategy was extremely unique where 70% of the seats are sold at lowest two fares and the rest is at higher prices with 6% sold at the highest and customers are ruled out of fuel surcharges (Marketing Teacher Ltd, n.d). Customers are content with the aspect of value for money and best prices compared to other competing airlines. Marketing strategy They utilize adverts which basically communicate the low-fares factor to its customers. Mostly they use controversy as their promotion method where for instance, bidding to purchase Aer Lingus, the Irish rival of Ryanair, charging  £1 per person for the use of washroom on board from 2010 (Crouthamel 2010), publishing controversy calendars with female cabin crew for charity purposes etc. Also another important factor is the ancillary services or non-flight scheduled services such as hotels, car hires, in-flight sales etc. 6.2 Weaknesses Cost Structure Ryanair is at continuous attempt to reduce costs at any possible situation and therefore it has a negative impact on customer satisfaction due to this high cost consciousness. According to a poll by TripAdvisor in 2006 Ryanair was voted as the worlds least favourite airline and Ryanair is ranked as a 2 Star low-cost airline by airlinequality.com (n.d) which also explains the negative perspective of customers about low quality. Also this cost structure is constantly challenged by the fluctuations of fuel prices. Staff issues Ryanair scores low regarding industrial relations where they are alleged of providing poor working conditions. Ryanair recruit young pilots who could work hard and with experience and knowledge gathered at Ryanair they tend to move on as a result of low commitment. 6.3 Opportunities Expansion to the USA The low-fares structure is not common in the US as it is in Europe and therefore Ryanair would be the first mover to the US domestic airline market as it plans to extend itself under a different brand for long haul flights between US and Europe (McGrath, 2007). It is said that Ryanair would be the cheapest USA flights in history and its popularity and success in Europe would spill over to the new brand. Recession Price has become an extremely important factor in making purchase decisions and therefore Ryanair could score due to its low-fares nature during and at the aftermath of the global economic recession. The grid (Appendix B) illustrates the increased demand towards Ryanair where its passenger numbers has grown by 13% from 2007-2008. New aircrafts and focus on business professionals Ryanair currently owns 189 Boeing 737-800 which are more environmental friendly and larger in capacity. Also discussions are underway for an order for 200-300 aircrafts for 2013-2016 requirements (centre for aviation, 2009). Also with changes in the business world and focus on countries such as China and USA the demand for long haul flights have increased. 6.4 Threats Fuel prices and other charges As Ryanair does not pass on fuel surcharges to its customers, the unpredictability in fuel prices and inexperience in effective hedging compared to its competitors it is at risk of continuing with lowering costs. Also increase in airport and handling charges and route charges due to expansion would also threaten its cost structure. Political influence As Ryanair operates in more than one country it is influenced by various legal requirements which are different to one another and therefore faces difficulties in standardizing processes and practices. 7.0 Recommendations Considering a much more structured marketing strategy which does not depend on controversy publicity. Taking measures to reduce negative publicity through practicing CSR projects and demonstrating ethical behaviour moving away from merely being profit conscious Proving customers with benefits of the low-cost structure through effective customer service which would increase numbers and thereby would positively affect profit margins although costs may increase in the process. 8.0 Conclusion Ryanair as the largest low-fares carrier and the market leader of the European budget airline market has been able to succeed due to its unique and out-of-the-box thinking. With a high rate of rivalry within the industry with big players such as easyJet, Lufthansa, Air France practicing competitive strategies time-to-time Ryanair is required to follow the correct strategies in order to remain at its throne. Accordingly effective analysis of its internal, external and industrial aspects would increase its possibilities. Ryanair with its low-cost strategy and powerful brand reputation could match its strengths with the opportunities in the market, especially those which have arisen due to the economical downturn increasing the demand for low-cost travel. Furthermore, due to its capabilities the industry attractiveness is at a high level for Ryanair. However the business is at a spotlight due to its controversy practices which they utilize as a means of publicity could negatively affect its brand in the long run and therefore should take steps to reduce these effects.