Face Negotiation Theory Essay

The Face Negotiation Theory is established by Stella Ting-Toomey, which discusses the way by which people with different cultures communicate and manage conflict. In 1985, Stella Ting Toomey explains in her theory that disagreements and conflicts are usually brought about by identity management on the individualistic and collectivistic levels. The different facets that characterizes the identity of an individual or group is referred to as â€Å"faces†. Faces serves as the public image of an individual or group, which the society as a whole assessed depending upon the cultural norms and values of the people’s respective culture. According to Ting-Toomey, the distinction between individualistic and collectivists cultures is seen on how the former gives more importance to the face of the individual while the latter gives more attention to the welfare of the group (Gudykunst, 2005). The major tenets of the Face Negotiation Theory are greatly applicable with my life, especially since I interact with people that have different cultural background. I have friends who do not share the same culture that I have and sometimes this is the cause of misunderstandings between us because cultural differences also affect the values and principles that we have in life. However, I realized that in order to get along with my friends I need to understand and accept our differences and in doing so, I need to properly communicate with them in a way that shows my respect to their values and beliefs, which is actually one of the important things that is explained in the theory. In relation to this, I also learn that the theory can actually help me to enhance my communication process in the future wherein I could try having a more collectivistic face, which will allow me to give more importance to the welfare of the group rather than my individual interests. Moreover, I realized that the relevance of the Face Negotiation Theory has become more vital than ever because our society is becoming more interconnected with each other, especially with the greater interaction of different people all over the world. Reference Gudykunst, W. B. (2005). Theorizing about intercultural communication. California: SAGE.

Lines composed a few miles above Tintern Abbey Essay

In Wordsworth’s â€Å"Tintern Abbey† the poem begins as we are taken from the height of a mountain stream down into the valley where the poet sits under a sycamore tree surveying the beauty of the natural world. This introduction through nature sets the scene for the poet’s blending of his mind with that of the natural world. Here Wordsworth does not dwell on the imprint of mankind on the landscape but on the connection of an isolated individual enveloped within the wild world of nature. Although he refers to the presence of man – vagrant dwellers or hermits his connection is with the untouched splendour of the countryside. From his perspective, looking out on the verdant landscape, the speaker ties his connection with nature to the past. He remembers that during his long absence from the Wye Valley, years which he spent living in the city, he found consolation in calling back the memories of his time spent in nature ‘But oft, in lonely rooms, and mid the dim Of towns and cities, I have owned to them, In hours of weariness, sensations sweet, Felt in the blood, and felt along the heart.’ It is important to note here that Wordsworth is not merely finding comfort in fondly remembering a past holiday, but is unequivocally using the natural setting as his source for transcendence. By specifically using nature as his escape from ‘†¦the heavy and weary weight Of all this unintelligible world’ , he asserts that the purity of nature holds no ill memories of man’s unkindness. This ability to gradually retreat from the trials of daily life by calling to mind the solace found in nature is key to the concept that only through withdrawal from the world of society and immersion in the natural world can one rise above present strife. Wordsworth continues speaking of his connection with nature to the past by relating how nature has held prominence during all stages of his past life. But here he also imparts the importance his intimacy with nature will have in his future as he states ‘that in this moment there is life and food For future years’. Wordsworth realizes that the memories of the past will continue to provide pleasure and connection even as he grows old. In the final refrain, the poem suddenly shifts perspective back to the present and instead of considering his own connection with nature, Wordsworth now turns his attention to being in the sylvan valley with his sister, Dorothy. He compares his sisters simple, intense pleasure on nature with his own at the earlier stages of his life. He parlays that she will benefit from the love of nature as he has done and find in it solace from the ‘dreary’ scenes of adult life. However, Wordsworth’s message to the readers seems didactic as he addresses what he is meant to be telling his sister to us, ‘Our cheerful faith that all which we behold Is full of blessings. Therefore let the moon Shine on thee in thy solitary walk.’ His hopes for the future are that his sister will also experience the healing powers of nature that he himself has experienced. By stating ‘†¦Nature never did betray The heart that loved her’ Wordsworth assures his sister that she too will find solace from the heartless world by her communion with nature and her memories of his day that they are spending together. Wordsworth’s ability to look to the future to predict memories of events that are happening in the present is ingenious and complicated. But Wordsworth beautifully clarifies this concept by using nature as the ideal link between recollection, foresight, and his relationship with another. Wordsworth neatly ties together the significance of nature not only with his previous experience of remembering nature, but also with how he sees the natural world affecting the future to pass on his message that he has clearly matured over the past years hence the poem being the last one in the anthology. He further states that even â€Å"if I should be where I no more can hear Thy voice, nor catch from thy wild eyes these gleams of past existence† , their memories shared in nature will endure to give Dorothy solace as she grows old. By looking to the future, Wordsworth comprehends that because of their shared recollection of their communion in the outdoors, he and his sister will be tied together even after his death. Wordsworth Other poets * Believed ordinary life and ordinary people were important enough to have poetry written for them. * Believed poets to be ordinary people who lived more intensely than others and cultivated their imagination and expressive powers. * Poetry should be written in a language understood by most people ‘man speaking to man’ * Poetry should be written about situations of everyday life. * Through use of memory poetry could recreate events although not religious WW believed that poetry rather than religion was to be given the mission of bringing humanity together * Childhood experiences affected adult mind. * Believed that a poem must have a definite direction and that the reader should be very clear as to what the poem is actually about. * Believed that in order for a short metrical composition to be a poem, it must be organized clearly and, according to Wordsworth â€Å"also thought long and lovingly about† * Poetry should have passion and emotion and be of great pleasure. * The pleasures that Wordsworth was referring to man being â€Å"accustomed to† are those experiences that are derived from nature. Nature in this sense may be the emotion of an experience with living nature, such as a majestic observance of a mountain, or it may be in the sense of human nature, such as the natural presence of a mother’s love * William Wordsworth thought that the poem should speak directly from common life â€Å"by fitting to metrical arrangement a selection of the real language of men in a state of vivid sensation† * Poetry was a tool to change peoples behaviour or as a learning mechanism. * Poetry is the spontaneous overflow of powerful feelings: it takes its origin from emotion recollected in tranquillity.

Industry Analysis: Airline Companies Essay

The airlines industry contains diverse types of players that compete in distinctive niches each with different business models. Airline companies owned by the State characterized the airlines industry into the 1980s. Because of privatization, this model no longer exists in Europe or in the U.S., but it is still present in Asia and Africa. Standard airline companies offer scheduled flights with flight connections, at least two classes on board, and other services such as in-flight entertainment, frequent flyer program airport lounge, food, etc. The majority of their revenues are earned through ticket sales. Low-cost airline companies offer scheduled flights with only one class on board and without additional service on board like in-flight entertainment, frequent flyer programs, airport lounges, etc. Their business model is different from the standard company because they have a different form of income through the ticket price. Ryanair and EasyJet fall into this category. Regional airline companies offer scheduled flights, usually with small airplanes and for short distances; they previously worked on behalf of other big airline companies (standard, major, government-owned) some of which owned a regional company to provide short route flights. Examples are US Airways Express owned by US Airways and Air Dolomiti owned by Lufthansa. Cargo airline companies offer freight transport. Some cargo airlines are divisions or subsidiaries of larger passenger airlines like Air France Cargo or Alitalia Cargo, but there are also independent companies like DHL and FedEx. Industry competitors are also known to build alliances. Reasons for airline companies to build alliances: scale economies, access to markets or technology, market power, and lower operating costs. Many alliances start as a code-sharing network whose benefits are cost reductions from sharing of sales offices, investments and purchases in order to negotiate extra volume discounts, operational staff (g round handling personnel and check-in and boarding desks), and operation facilities (catering or computer systems). We can find drivers for different types of alliances and divide them into three categories: deregulation of the industry, changes in customer preferences, and changes in technology and infrastructure. Deregulation has opened up the market and led to intensifying competition and consequently a battle to secure market presence and decreased costs. Changes in customer preferences comprise such factors  as overall globalization of businesses, the diminishing role of airline nationality in customers’ choices and the preference by customers for high flight frequencies, and seamless connections to nearly any point in the globe. Technological and infrastructural changes include the introduction of medium size long-range aircrafts and the development of sales and distribution technology (i.e. the Internet and many airports in many areas). The strength of buying power that firms face from their customers, and thus the sharing of the value created by the transactions, depends on two fa ctors: buyer’s price sensitivity and their relative bargaining power. The airline industry shows two sources of potential price sensitivity. First, the importance of flight cost as a proportion of total cost of travel; this is exemplified in leisure travel where price typically represents twenty-five percent of total travel costs. The exact percentage varies depending on the length and type of travel, and increases in the non-liberalized markets. Secondly, the low or non-existent differentiation perceived by the customers increases the willingness of the buyer to switch airlines on the basis of price. Deregulation has increased price competition and has exposed buyers’ price sensitivity. A study by Gillen, Morrison and Stewart found substantial demand elasticity. It established that business travelers are usually less price-sensitive (less elastic) than leisure travelers, and that elasticity on short-haul routes are generally higher than on long-haul routes, a result explained by the presence of potential substitute for the first. The bargaining power of buyers relative to that of the seller is considerably by the size and concentration of buyers relative to producers as well as the buyers’ switching costs. The airline industry has achieved 598 billion of revenue in 2011, carrying 2.75 billion passengers. These figures clearly show that a large number of buyers have very small individual purchases compared to industry revenue, thus losing a single traveler has a low impact on the total revenue. Although we can say that this first factor is favorable for the airlines, in the airline industry switching costs are relatively low, because of the minimal search costs to find alternative suppliers, and learning costs, linked to the specific knowledge required to use a product, as well as the total absence of emotional cost, and psychological and social risk. Airline companies have successfully tried to increase them through frequent flyer programs, which  create advantages to the customer for their loyalty. Finally we can state that the relative bargaining power of buyers is medium, because of the opposite effects of the two described factors. However, when considering the high price sensitivity and the relative economic power of buyers their share of the created value is relatively high. Prices and profits within an industry depend on buyers’ propensity to substitute its products with existing alternatives based on their prices and performance. Air transportation does not have any perfect substitutes for intercontinental flights, however, short-haul routes, have potential substitutes: car, bus, and train. Cars are higher in convenience, allowing the traveler to reach the place nearest the final destination, but are limited by potential traffic and other complications. Moreover the trend of rising gas prices in recent decades has dramatically reduced the feasibility of driving. Busing is a similar substitute to driving, but is less convenient though frequently less expensive. We consider trains to currently act as the main substitute to air transportation. The development of high-speed rails, mainly in Europe and Asia, allows for a huge decrease in the transportation time by train. Considering that trains are often cheaper than flights and allow travelers to reach a destination nearest their final one, they represent a formidable substitute for air transportation. We observed the existence of high supplier power in the airlines industry. These suppliers predominantly consist of airplane providers, airports, labor unions, and fuel providers. These suppliers increase competition in the airline industry as well as decrease the profit potential for airlines by raising prices, decreasing product quality, and by making products scarce. Boeing (US) and Airbus (EU) largely dominate the global airline supply industry. The reduction in product availability resulting from long waitlists, including Boeing’s three years waiting period for the 777 jet, and design/production delays cause complications for airlines attempting to update or expan d their fleets. The new airplanes are designed to increase fuel-efficiency therefore, delays to upgrade may result in higher fuel costs and airlines that do not plan accordingly may also spend more on maintenance and repair costs. Airlines’ technological competitive advantage may largely depend upon being at the top of the waiting list. Boeing and Airbus have the advantage of scarce product availability and expensive prices which gives them high supplier power.  Airlines must pay airport-landing fees. Each airport has different rates for landing fees that are based a measurement of aircraft size that is also unique per airport. In 2007 IAD charged $2.13 per 1,000 pounds of maximum landing weight. This price is on the lower end of a spectrum that can peak around $4.59 charged by DFW the same year. High traffic airports will charge greater airport-landing fees knowing that airlines will pay them in order to have access to those customers. Although the airports’ supplier power is not as high as the airplane providers, they still have a high supplier power because they are able charge higher prices. In addition, the majority of airline industry labor is unionized, which contributes to high supplier power in the industry. This means that in the event of disagreements between airlines and their employees there is an organized system for the employees to unite under. Unions include, Association of Flight Attendants, the Air Line Pilots Association, National Association of Air Traffic Controllers, and the Transport Workers Union. Collective bargaining by these unions raises the cost of labor for airlines making it more difficult to compete on a low cost strategy. Rising fuel costs are also a constant struggle for airlines to maintain. Fuel costs are estimated to be approximately thirty percent of operating cost for each airline. Some companies combat this by hedging costs, but even with these measures airlines have very little control over fuel prices. The ability of fuel providers to decrease the profit potential for airlines and increase fuel costs gives them high supplier power. The capital investment required to start an airline industry alone is a huge barrier to entry. Some of the required equity includes many fixed assets that lead to low profit margins and perhaps the lowest return on equity among competing airlines. The industry is also characterized by a large contribution margin; variable costs are particularly low compared to fixed. Variable costs are: landing fees, paid by the carriers according to the number of passengers, and catering and selling fees, paid mainly to online sellers and travel agencies. Staff, fuel, airplane maintenance and leasing, and amortization and depreciation determine fixed costs. Given the high contribution margin, volatility in the volume of passengers seriously impact companies’ operating profit losing a customer means a large loss for the company. Government regulation limited competition with rules about prices and routes, but deregulation drove the  industry towards ticket price competition. Because of this the traditional business model became unsustainable for almost everyone already present in the business. The deregulation of the airline industry has also given rise to the competitive pricing environment, which enables airlines to freely set price s in order to compete. Airlines have created complex pricing models that essentially improve their service to customers. With the combination of affordable ticket prices and increased availability of travel options, the total customer base has increased significantly. Moreover this difficult situation is compounded because of the low switching cost and lack of brand loyalty. Depending on geographical location and competition, the airports and airplanes comprise such a significant portion of the cost that it is very challenging for any airline to make a profit. Large airlines are able to offset these costs with economies of scale. Airlines must invest in R&D, technology, and management in order to provide services to customers at some profit. Large airlines have also established a global presence that makes it extremely difficult for small, local startup airlines to gain some degree of advantage. A hub of concentrated alliances in vital geographical locations also make it difficult for new airlines to compete. Such alliances provide a network among allies that enable them to efficiently capitalize on their marketing and advertising strategies. Large marketing and advertising efforts are spent in the hope of capturing a large share of the market, and frequent flyer programs are created in an effort to secure this market share. Nevertheless, the regulatory hurdles within the airports are extremely challenging for new entrants. There are a number of federal requirements that airlines must obtain within an airport to include the use of airfields, terminal facilities, limitations on capacity, specifically take-offs and landings, to resolve the issue of air traffic congestion. In addition, the bargaining power of suppliers makes it difficult for new airlines to enter. Today, the two major airline suppliers, Airbus and Boeing, have already established exclusive agreements with firms within their value chain that make it very difficult for new entrants to enter the industry. The high-risk of the airline industry is one of the aspects that make it very unattractive. In the firm analysis we wish to focus and understand how a traditional flagship company and a new low cost carrier has faced this strategic challenge in an unattractive industry. Ryanair The Ryan family with little capital and a staff of twenty-five people founded Ryanair in 1985. In 1986 Ryanair obtained permission from the regulatory authorities to challenge the British Airways and Aer Lingus, flagship of Ireland, a high fare duopoly on the Dublin-London route. In 1991, after an uncertain start and loss accounts, Michael O’Leary got the task of restructuring the company by adopting the economic model â€Å"low fares / no frills†, which was used successfully by Southwest Airlines. In 1995, Ryanair overtook Aer Lingus and British Airways to become the largest passenger airline on the Dublin-London route (the biggest international scheduled route in Europe) proving that Ryanair’s low fares, high frequency formula continues to win acceptance in every market between Ireland and the UK. The European Union finally completed the â€Å"Open Skies† deregulation of the scheduled airline business thereby enabling airlines to compete freely throughou t Europe. In January 2000, Ryanair launches Europe’s largest booking website – www.ryanair.com and becomes the only source of low airfares in Europe. Ryanair spotted opportunities in the market arising from the inefficient traditional business model adopted by the flagship companies; issues such as inflexible labor roles, high staff numbers and salaries, and extravagant airport fees could work adequately only within the previous regulatory constraints. In this environment Ryanair has been able to build a cost competitive advantage that offers air transportation services that are more valuable to its customers than similar offers for a simple reason, price. The airline, in its effort to achieve becoming the lowest cost European airline, has implemented a double faced strategy: it has completely changed its core and complementary services mix and it strives to reduce costs in any possible way, thus dramatically reducing its the core service, air transportation, price, and created new sources of revenue. Ryanair has a different kind of revenue in respect to the other airline carriers. For standard airline companies revenue is made by ticket prices, but not for Ryanair. The goal of the firm is to grow the number of passengers through cost reduction, which allows the company to offer low-ticket prices. Ryanair targets price sensitive consumers, such as young people or occasional travelers that usually use substitute products like trains and cars. The company offers tickets for a price that does not allow  them to cover all operative costs, but their cost structure is built so they get other revenue from additional services. Ryanair charges their customers for the accessory services they offer; the only service that is included in the ticket price is the flight. There is no food service during the flight, there are no assigned seats on the plane, customers must pay for checked baggage, and they pay an extra fee for booking with a credit card. These service charges account for the thir ty percent of the company’s total revenue. On average they charge every passenger 10.8â‚ ¬ when the normal price of a one-way ticket is 50â‚ ¬. With this business model the company does not need to hire as many employees because some the services are provided by the customers, one example is the check in line that is mandatory if you do not want to pay 50â‚ ¬ for every boarding card. This has brought the company to an important cost advantage position with respect to competitors, and their cost structure allows them to win every price war battle. Under the guidance of O’Leary, Ryanair has always sought to reduce its costs, sometimes â€Å"maniacally†. The first element of this effort is their fleet. The company’s fleet history can be split into two epochs. In the beginning, Ryanair followed the behavior a lot of small low-cost companies and bought whatever best met its needs in terms of price, passenger volumes, and financing abilities, this resulted in a fleet with many different types of aircra fts with many different capacities and requirements. This attitude changed in 2002 when Ryanair ordered a hundred of Boeing 737-800, its first move in creating a standardized fleet. Currently the airline has a fleet of 305 Boeing 727-800s with a unique design characterized by having the maximum density possible and the lowest average age among competitors. All these features allow for lower maintenance costs, training costs, fuel consumptions, and cheaper parts and equipment supplies. Regarding aircraft usage, Ryanair has some particular features, mainly focused on reducing turnaround time and fuel consumption, such as choosing to land at secondary, less congested, airports, avoiding large hubs, relying on point to point routes thus maximizing aircraft flying time, and imposing strict fuel consumptions limits on its pilots to avoid repetitive refueling. Ryanair’s human resource policy clearly shows its effort to cut costs. Personnel, both cabin crew and pilots, has a dominant variable component on salary, this is based on hours flown, the same or increased duties relative to other airline  employees, training, uniform costs at the employees own expense, and no trade union representation. Despite the inevitable high turnover ratio and disgruntled employees, these policies allow the company to have a very flexible and relatively cheap labor force. Another important cost advantage is in flying to secondary airports; this policy allows the company to dramatically reduce its fees cost. Frequently Ryanair is the only one that carries in these airports, therefore their and all the linked business’ subsistence revolves around the company having a large bargaining power and some government subsides. Ryanair changed the environment of the industry. Before air transportation was perceived like an elite way of travelling, in fact high prices of the tickets pushed people to use substitutes for the short haul routes, such as car and train. Ryanair’s prices changed the people mind, allowing airplanes to be used more often for short vacation on weekends or even daily. Its main competitor is EasyJet, which uses a â€Å"lighter† low cost business model, focusing on different kind of customers such as business travelers, although with lower margins. The two main differences are its use of primary airports, giving more convenience to the customers, and its unionized labor force. Our analysis regarding to the potential recommendation for Ryanair has started from the consideration that its business model has been successful in facing the challenge and we have identified three possible directions. First, Ryanair could enter into the intercontinental market with new routes between Europe and the U.S. This market is characterized by high ticket prices (a minimum of 500â‚ ¬ round trip). Although the company could utilize some of its sources of cost advantage, such as intercontinental point-to-point routes, personnel policy, revenue from supplementary services, its cost advantage is not completely replicable in this context. Indeed it would have to buy new long distance carriers with more capacity. Sacrificing their fleet standardization and intercontinental flights requires high turnover time for refueling, and the possibilities of using secondary airports are limited by legal issues concerning the necessity of opening new borders. Another potential recommendation is to enter the Chinese domestic market which is a fast growing market (forecasting states that it will represent the 23% of the worldwide growth in passenger number in 2010-2020) and the second largest air travel market in the world behind USA. However, there are some  current constrains, mainly that airport systems are still in development, with a total number planned to increase from 175 to 270 in 2010-2020, and a relatively restricted middle class, only 10% of the country population although strongly growing. According to the present market environment we believe that this might be the best alternative in 5 to 10 years. We believe that currently the best recommendation is maintain its focus on Europe, increase its market share in countries mainly served by Easyjet, such as Turkey and East Europe. We recommend that Ryanair enter the intercontinental market, characterized by high-ticket prices, with new routes between Europe and the U.S. Ryanair could benefit by utilizing some of its sources of cost advantage. Ryanair could use secondary airports in the U.S. and through its intercontinental, point-to-point, routes focusing on the main tourist and business cities. Its personnel policy could also be applied in this market; by offering low core service prices they could increase their revenue with supplementary services. Ryanair could develop an alliance with Southwester Airlines using the same airport and split their transatlantic flights, thus increasing the passenger volume for both companies in their core business continental flights. Lufthansa Since its inception in 1953, the Lufthansa German Airline has been regarded as a premier airline company that has become the largest airliner in Europe. They have diversified both locally within Europe and globally. Their key strategic efforts have led them to be the founders of the world’s largest airline alliance, Star Alliance. They have diversified into various business segments to include â€Å"passenger airline groups, logistics, MRO, catering and IT services. With this combination of efficient business segments, the airline group has been able to generate more than 30.1 billion euros, the highest revenues compared to other European airlines. Lufthansa’s main strategy is to increase the equity/value of the company, maintain and also improve their exceptional reputation on customer satisfaction, be very robust during economic fluctuations, and maintain profitability. In an industry involving high operational costs; where competitors are increasing moving towards c ost advantage strategies Lufthansa aims to meet their strategic goals through a differentiation advantage that emphasizes customer service, alliances, and its reputation as a premium full-service airline. An important resource for Lufthansa is its extensive fleet. Lufthansa Passenger Airlines has a fleet that currently consists of more than four hundred aircrafts; they also enjoy a first-mover advantage by being the launch customers or early adopters of many different aircrafts. These include acting as a launch customer for Boeing 747-8I in 2006 and being the second to operate the Airbus A380 in 2010. By consistently participating in fleet renewal Lufthansa is able to regularly update to more cost-efficient and more environmentally friendly aircrafts. In July of 2011 a Lufthansa Airbus A321 was used in a six-month bio fuel trial expected to reduce CO2 emissions by up to 1,500 tons in the trial period. Lufthansa’s extensive and modern fleet enable the airline to have extensive global reach, cutting edge aircraft technology to increase efficiency, and environmentally conscious technology to define a new environmental industry standard. This attention to fleet quality ensures that customers have an excellent flying experience that is not hampered by old and inefficient planes. Passengers are also able to enjoy the distinctions accompanied with first, business, and economy class. First class seats convert into a bed and seats in all classes feature personal Audio-Video-On-Demand screens. In addition, attentive staff on all flights generously offers a wide range of complimentary food and beverage. Many terminals include lounges for First Class flyers; Frankfurt Airport even features a First Class Terminal that sports a full-service restaurant, bar, cigar lounge, relaxation rooms, offices, and even bath facilities. 55,236 employees as of 2012 are trained to deliver the highest quality customer service. Lufthansa operates as an upscale airline and is therefore able to charge premium pricing to absorb the costs of providing such exceptional customer service. Despite the higher ticket prices the services and ease of use for customers are incomparable to other airlines and often leads first time passengers to become loyal users. Lufthansa services eighteen domestic destinations and one hundred and ninety seven international ones. Its global reach is one of Lufthans a’s key resources; it allows the company to provide greater and improved service to customers. These resources are greatly supplemented by the abilities of the other activities of the Lufthansa Aviation Group and by their participation in the Star Alliance. The Lufthansa Aviation Group is a parent company made up of the passenger airline business, logistics, maintenance, repair, and  overhaul, catering, and IT services. The ability of these sister companies greatly supplement the resources of the passenger airline business. The Star Alliance is another key resource that now operates with twenty-eight partners and services four hundred and ten worldwide destinations. The alliance captures twenty-eight percent of the global market measured by revenue passenger kilometers. Because the frequent flyer program Miles & More is transferable among all members it aids to broaden the scope of Lufthansa’s reach. The alliance makes up the world’s largest airline alliance and is the world’s first multilateral airlines alliance. The abilities of Lufthansa’s othe r alliances would not be possible without OAG, who describe themselves as, â€Å"the most powerful schedule connections analysis tool for modeling flight connections between every airline flight, anywhere.† OAG’s services provide them with current, detailed, and accurate data that enables Lufthansa to drive efficiency and optimize its business processes. The changes Lufthansa makes from this data analysis increase customer satisfaction while reducing costs and increasing revenue. It helps monitor competitor activity, identifies codeshare opportunities, and manages partner schedule synchronization. Due to the timeliness of this data the firm has the capability to quickly react to market changes and counter-attack other competitors’ advantages. Excellent customer service is ensured through the critical connection of this data that enables Lufthansa to continuously improve the customer completion and baggage processing metrics. Lufthansa’s fleet renewal, customer service, terminals, and alliances are scarce resources that are difficult to imitate. The fleet, terminals, and alliance are difficult to imitate because of the sheer size and scale of these resources, whereas its service is costly and would be difficult to incorporate into any firm that does not have the cost structure and capital resources to support it. As the majority of airlines already compete by cost advantage, we feel that Lufthansa would be disadvantaged if they attempted to replicate that strategy. Therefore, we recommend that Lufthansa expand its premium customer service differentiation advantage by partnering with hotels that also provide excellent customer service in areas near its terminals. As Lufthansa’s fliers already value their premium customer service this partnership would ensure that passengers’ luxury experience would not end upon reaching their destination. The range of  hotels to partner with will correspond with flight class and frequent flyer status. First Class passengers will have the option to stay in top tier hotels and Economy Classes will have the option to book with upscale hotels that are more price sensitive. The Miles & More program will be expanded so that fliers earn credits by staying with these luxury partner hotels. The hope is that the fliers will have such a wonderful experience with the complementary services that they will express their delight to current hotel customers. As the hotel customers already value premium customer service it is our hope that in the future they will be inclined to book with Lufthansa as they offer such service. The success of this partnership has the potential to result in a revenue sharing agreement, in which Lufthansa will receive a percentage when passengers book with a partner hotel through Lufthansa. Their risk will also be reduced, as they are engaging in a partnership instead of attempting to enter this foreign industry alone. Although this partnership would be Lufthansa’s first non-aviation venture we believe that they will benefit by offering such a complementary service. The goal of this partnership is to connect customers that value upscale customer service with Lufthansa, who enjoys a reputation as an upscale full-service airline, to increase the ir market share; market share that their cost advantage competitors sorely need.

Digital Technology Plays a Key Role in Education Essay - 1

Digital Technology Plays a Key Role in Education - Essay Example As the report declares digital technology’s capabilities and uses are numerous and it finds immense application in education. It has been seen that the practices of information technology have been implemented in the developed nations in such a manner that the students can make the most out of it. Although digital technology is emerging as a leading tool for the purposes of education but it still cannot be ignored that it also has some negative effects on the quality of education and administration of the classroom environment.This study highlights that the use of digital technology in education is not a new trend, but is one that has prevailed for centuries. Much of the development in the fields of science and technology can be attributed to the use of digital technology in education. Calculators have been used in educational institutions ranging from primary, through the high school, secondary school, college, and university level for many decades. Modern calculators come wi th a variety of functions that can help the mathematicians and scientists perform complex calculations in the blink of an eye. As technology has progressed over the years, it is seen that the implementation of many digital appliances has come into play for the educational systems. Previously it was believed that learning was a passive process, which could only be achieved if the learner was able to transmit his knowledge swiftly.

The Moral question of legallizing Marijuana Research Paper

The Moral question of legallizing Marijuana - Research Paper Example The rising numbers of people who are addicted to marijuana bring forth the severity of the problem. But, apart from these common but dubious modes, one of the positive but underrated ways in which Marijuana can be used is in the form of medicinal drugs to treat many health ailments, which cannot be optimally treated by other drugs. So, the moral question here is whether it right to overlook the negative effects of Marijuana, legalize it and use it for medicinal purposes. That is, although Marijuana has negative effects, it will be negative only if it is used in excessive and extreme manner. However, the other perspective is, using Marijuana aptly and positively will save many lives and eliminate their sufferings. So, this paper will focus on this contemporary problem, making a case that would be just to legalize Marijuana. Although legalizing Marijuana will bring financial advantages to the state coffers, the main crux based on which it should be legalized, is its use for medicinal purposes. So, this paper will argue for legalization and will justify such a measure by listing out how it can be used to treat many medical aliments, thereby providing a moral justification. Legalization of marijuana has been an issue of contention of late with some arguing that legalization is good and others opposing it completely. The sparkle to kick-off the debate was thrown when San Francisco Assemblyman Tom Ammiano, instigated a legislation to legalize marijuana in California (Sabatini, 2009). This in turn has attracted diverse dimensions with some big names like California governor, Arnold Schwarzenegger, once a staunch opposer on the move, coming out publicly to accept that the time is now that lawmakers should exclusively debate the issue considering the economic aspect of marijuana trade as the downturn continues to bite (Sabatini, 2009). Over 500 economists including well known Friedman, Nobel Laureate

Decisions in Paradise, Part II Essay Example | Topics and Well Written Essays - 750 words - 1

Decisions in Paradise, Part II - Essay Example The company has gained the trust and confidence of the company’s current and future customers that they are paying their money’s worth of coffee and other Starbucks products. In terms of service, the company has proven itself to implement world class restaurant service in more than 30 countries around the world. Implementing the going green policy complies with global environmental laws, including the Island’s anti-pollution laws (Ferrell, 2010). Weaknesses. Within the Kava Island market segment, the Starbucks entity’s coffee and other restaurant products are normally higher than the prices of Starbucks’ competitors’ selling prices. The company is only focusing a majority of its marketing management activities on coffee sales. The company relies on coffee sales to bring the company out of a possible bankruptcy situation. The current economic depression enveloping the United States and United Kingdom triggered a drop in the demand for Starbuck s coffee. With many employees retrenched by the bankrupt United States and United Kingdom companies, the increased unemployment rate precipitated to many of Starbucks’ current and future customers losing their jobs. With the lost of their jobs, the current and future customers’ purchasing power declined. ... The company can also save on salaries in countries where the legally allowed salaries are lower than the salaries of Starbucks employees in the United States and United Kingdom. Another opportunity is to hire 16 years old and above employees as part time workers for short periods of time. Hiring the teenagers will help the parents pay for their students’ school and personal needs (Ferrell, 2010). Threats. There are several competitors cropping up in the same coffee restaurant market segment, including Kava Island. The Island’s coffee competitors include the lower priced coffee-serving restaurants in the newly established Kava Island branch. The cultural diversity of the new countries hinders the implementation of the United States-based culture imbued in the company’s unique global marketing strategies (Ferrell, 2010). Analysis of specific steps of the chosen decision-making technique Starbucks implements specific steps in the implementation of the companyâ€℠¢s decision-making techniques. The steps include advertising the many benefits of sipping the reasonably priced cup of the uniquely Starbucks coffee aroma (strengths). For example, the Starbucks coffee ambience creates togetherness among the company’s group clients. Likewise, the advertisements effectively show the busy business line and staff employees can easily ponder the day’s decision making plans while taking their Starbucks lunch (Nutt, 2010). Additionally, buying the local coffee products of Kava Island farmers, instead of importing the coffee plant raw materials from the US reduce raw materials transportation expenses. Consequently, the company can lower the selling prices and still generate more than enough profits (Nutt, 2010). Furthermore, the company hires the local residents to work

To be effective, leadership and management development must be aligned Essay - 1

To be effective, leadership and management development must be aligned to organisational strategy - Essay Example Those that fail to adapt to the rapidly changing external environment must risk becoming obsolete and losing crucial market share. Learning and management development assures successful accomplishment of organizational goals. This essay aims at discussing the key definitions, objectives and purpose, the effectiveness of LMD, the relationship between talent management and management development cycle and the impact of training and development to improve LMD among others. The key aim of this report is to critically evaluate the concept of leadership and management development (LMD) and the relevance and impact of aligning LMD with organizational strategy to improve its effectiveness. It also seeks to answer the quote through an in-depth discussion on the topic. The concept of LMD entails various programs that help the managers to attain the type of leadership as well as managerial qualities required to achieve organizational goals. LMD is an inevitable and crucial aspect of talent management along with career planning and career management activities since it combines a range of learning activities including "planned experience, self-directed learning, coaching, mentoring, action-learning, outdoor learning, and formal education and training programs based on an analysis of learning needs" (Armstrong & Taylor, 2014: p. 322). Burgoyne (2010) defines leadership development as "the acquisition, development and utilization of leadership capability or the potential for it" (p.43). Leadership development includes planned or emergent learning. Planned development refers to an "intervention with the specific aim of enhancing learning by participants" while emergent learning on the other hand entails learning that "occurs through activities that not been undertaken with leadership development in mind" but instead are created through experiences that enable and enhances learning development in the managers. This includes on-the-job learning where the managers /employees

Strategic Review Report for ZARA Company Essay Example | Topics and Well Written Essays - 4000 words

Strategic Review Report for ZARA Company - Essay Example The external environment covers the analysis globally in apparel industries (Cunningham, 2012:34). External environment analysis The external environment will have an analytical review using the PESTEL and Porter’s five Forces model. Political segment-The current increasing political instability among many nations does not do any favors to business people. The war in many nations in Europe, for example nations in the Middle East like Iraq forces businesses to close down and others end up losing their items through theft. Thus, for an investor investing in another country it leads to double loss, which may impact so negatively to the trader such that closing down the business, may end up being the result. In addition, some powerful political figures in other nations where a trader may want to invest or has already invested may order the business not to have a permit to operate in that country or to close down immediately if it is in operation (Hill, 2010:63). This helps to serv e the interests of the politician if they had a business similar to the new one in operation or the one to start operating, since by so doing they will have ensured that the competition is low if other such kinds of businesses operate in the country. This hinders the general growth and development of any business, hinders competition and the result is high prices for commodities, and consequently this is a practice that should remain disregarded completely in the society. Furthermore, employee’s rights and child workforce regulations remain vital to consider facilitating a legal and maintainable job environment in production. Moreover, since the growth of global trade, most producers have their bases in developing nations. The price influence of import and export taxes on the apparel organizations directly influences the progress of global retailers (Schermerhorn, 2011: 56). Economic segment- Because of weak currencies, low workforce costs and the chance to be near to custome rs, a business ought to look into the techniques to reap benefits from a different site. This is so because competition has already penetrated the newer market and persistently tries to balance the gains related to these markets. This has a great influence on the profits of the enterprise. The attainment of a stable economy has remained a big challenge to so many countries and thus current economic trends like inflation, unfavorable balance of payments among others pose a great threat to business people in many countries. These trends affect both the growth and profitability of the organization (Pahl, 2008:72). For instance, the purchase of clothing may simply remain a luxury rather than a necessity. Thus, when an economic recession occurs, it may cause a reduction in customers’ disposable earnings, and hence leading to reduced expenditure on clothing. Moreover, a higher rate of individual savings may have a negative influence on demand in the apparel industry (Cunningham, 20 12:14). Socio-cultural segment- customers appear to use much money on electronics, travelling, healthcare, education, and leisure and spend less on clothing, which makes apparel industries to establish their organizations ecologically to meet customers’ demands. Many workers in the company are females, and they mainly do spinning, weaving, or hanging fabrics jobs whereas males take over technical works like machine supervision.

The Ontology-based Software Co-Evolution of Cloud and Mobile Computing Literature review

The Ontology-based Software Co-Evolution of Cloud and Mobile Computing - Literature review Example Lanois (2010, p. 29) explains cloud computing from a socio-technological perspective in the following words: â€Å"As consumers are spending an increasing amount of time online and demanding convenient, instant access to more content, cloud computing is becoming a rapidly growing technology and the industry’s new buzzword. In a nutshell, the idea behind cloud computing is that instead of having the software and data stored locally on a user’s own computer, they can all be stored on Internet servers, or â€Å"in the clouds,† and accessed as a service on the Internet.† According to the works of Shang et al (2010), the concept stack of cloud computing has four major components. These are the computing resources, the operating system & grid middleware, the cloud middleware and the application layers. Shang et al (2010) have taken a layered approach and the computing resources have been assigned as the baseline layer of this stack structure. Above this layer is the layer of grid middleware & operating system. Its role is to harness cluster computing facilities and virtualisation from the pool of computing resources. Next is the cloud middleware layer where the computing facilities are synchronically modified, organised and distributed. Finally, at the top of the stack model, there is the application layer where the real requirements of end users are addressed though a service oriented architecture or SOA. (Shang et al, 2010, pp. 150-151) Mobile computing, on the other hand, is a technology that has given rise to scalable networks with the help of different handheld and portable computing devices available to the end users. It emerged relatively earlier than cloud computing, and primarily used Internet based telephony and communication techniques. As early as the 1990s, experts defined adaptability to be the most critical feature of mobile computing, since it involves a diverse range of software and hardware platforms that must work togeth er and interact seamlessly (Satyanarayanan, 1995). The research team led by de Oliveira (2010) have presented a detailed cloud computing taxonomy which can be utilised in an ontological approach (please refer to Figure - 1). In taxonomical construct of cloud computing, mobile devices are categorized under the sub-taxonomy of access. Along with the thin clients, mobile is the type of access to clouds apart from the desktop with handheld devices or mobile phones. Mobile computing can facilitate access to the cloud computing resources with the help of phones instead of the static workstations and desktops. (de Oliveira et al, p. 56) With the lapse of time, end users are becoming increasingly mobile. On the go, they not only need portable devices but also demand powerful computing facilities. This has given rise to the concept of â€Å"mobile workforce† (Liu, 2010, p. 4). In order to support such a mobile workforce at the business model sub-taxonomical cohort of cloud computing t echniques (please see Figure - 1), organisations are looking forward to mobile cloud applications. These applications would be highly adaptable at the programming side, synchronising various kinds of hardware and software platforms ranging from similar to disparate configurations. Figure – 1: Taxonomy of cloud computing. Please note the position of mobile technology in the sub-taxonomy of â€Å"Access† located at the lower left-hand side corner of the illustration. Source: de Oliveira et al (2010, p. 52) 2. Migrating Existing Software to Mobile Cloud Application

Police Essay Example for Free

Police Essay Police generally perceive the risk of injury, assault, and even death to be greatest for domestic violence calls. Why do police have these beliefs, and what is the reality of the situation? When responding to calls few inspire more dread among police officers than answering to a domestic call. Police have generally the perception of risk of injury, assault and even death. There is always this perception among police officers when answering domestic calls. Such perception cannot be avoided because domestic calls most often than not have the element of unpredictability. Emotions are high and this can run even higher if coupled with drugs and alcohol. Indeed, responding to a domestic call can be very risky on the part of the police officers. When they respond to such call, they are perceived as the threat instead of being the protector. Traditionally, a police officer would respond to a call and restore peace as soon as possible and then clear from the call. The community policing philosophy dictates that the officer review of the problem, analyze it and try to come up with a solution to the problem. (Denise Papagno). However, this theory is not realistic at all. Upon responding to a domestic call, the police officer enters into a domestic abode as a protector, but in the eyes of the owners of the abode despite his good intentions, he will always be the intruder. Hence, the police officer cannot effectively do his job especially if the victim refuses to leave and instead would insist in not doing anything or even file a complaint for that matter. It is essentially difficult for police officers to face and respond to domestic calls as society now views domestic calls as a serious crime and not merely a private family quarrel. The fact that not all of the police are educated in handling domestic issues or why the victim does not leave her abuser or why the batterer abuses the victim. Because of this, the police fail to understand victims of domestic calls and are less inclined to help them in the next call. In your opinion, what is the most problematic myth associated with policing? Explain your answer. As early as the 18th century, police work or policing is associated in being a night watchman. The job basically entails maintaining order against threats to order itself – wild animals, fire or unruly behaviour. However, at the turn of the century, policing has evolved into something more than being a night watchman. Police not only has to maintain order in their respective communities but they are also tasked to solve and fight crimes. Hence, the notion that police can solve any crime reported to them grew. As crime fighters, this notion has proven to be an additional burden to policing. Even simple and private nuisances such as littering, drunkenness and unruly behaviour are called in and reported to the police. Hence, this takes up on the workload of policing instead of focusing more on the serious crime-solving work. But together with the notion of being crime-fighters came the myth of police brutality. The average citizen sees policemen as having â€Å"zero-tolerance†. For example, in domestic calls, instead of turning in their abuser, victims would opt not to do anything for fear of the police. If they fear their abusers, victims fear the police more. It does not help that there are also police mandates such as that of Rudy Giuliani who implemented a version of Broken Windows policing across New York City. Thus, policemen were tasked to become aggressive in stamping out public disorder such as drunkenness, jaywalking and noisiness. In reality however, policing is not just being brutal and aggressive towards those lawbreakers. The concept of â€Å"community policing† has made advancement in policing. Thus, police officers who are on foot patrol have elevated the common myth about policing because admittedly, an officer who is inside the squad car and safely sealed inside cannot relate with the other people from the neighbourhood.

Risks Associated With International Business Transactions Economics Essay

Risks Associated With International Business Transactions Economics Essay International business has appeared in the history to satisfy the need of merchandises from long distance nations , it was an international trade . It begins in the 19th century BC where it has appeared in Assyrian merchant colony in Cappadocia . Camels allows Arab to move spices and silk from far east and trade it , establishing the silk road which make a connection to trade Chinese and Indian goods with the Romanian empire goods .Vasco de gamma ( Portuguese explorer ) has established a sea route between Europe and India . As international trade extent to reach all nations , the necessity of regulations or an international business law has been raised . The main convention for international trade was the united nations convention on contracts for international sale of good (CISG) which established by UNCITRAL (United nations commission on international trade law) . International Business Law involves two parts , private and public law , the private law related to international business transaction like international trade , finance trade , licensing and distributing agreements . the public law related to agreements that help to create a legal framework which international business takes place ( e.g. Treaties , Customs , Tariff.. ) International Business Transactions A business transactions begins when a buyer and a seller agree the terms and conditions to purchase a specific goods with a detailed quantity and price ( contract of sale ). In this contract , from the buyer point of view what is essential is to gain the ownership of the goods , for the seller what is important is to have the legal terms that provide receiving money . An International business transactions differ from domestic business transaction , because its usually include long distance which means higher risk in goods transiting , which mean higher insurance , how money will be transferred and who is responsible of the goods delivery , all that should be included and clearly in international business transaction contract . import Export trade Imports are goods or services that are made or grown abroad then purchased or receipt by the importer and distributed domestically . Exports are goods or services that are made or grown inside the nation then sold or rendered by the exporter to be distributed abroad The need of export import trade generally is because on country has an advantage over others in specific items , some countries have comparative advantages like manufacturing (ex. Germany , japan .. ) others have comparative advantage in natural resources like oil or gas ( ex. Saudi Arabia , Russia ) . Exporting can be direct or indirect .Direct exporting is when the manufacturer take the responsibility of most of the export processes , usually they use Foreign sales representative or foreign distributer in the exported country .Indirect exporting is when a company use intermediaries ( export trade company , export management company ) to enter the foreign market , usually happen because lack of capital or because the company do not have the needed experience to enter this foreign country . Trades usually governed by the laws and regulations of the trade countries , they use tariffs and non-tariffs barriers , this reflect the way that companies trade with each country . In 1947 nations accept General Agreement on Tariffs and Trade , this movement occurred to liberalize trade by reducing tariffs and non-tariffs barriers . in 1995 WTO (World Trade Organization ) has been created to manage the rules and assist settling the trade disputes between WTO nations . foreign Direct Investment Foreign Direct Investment is when a company invest its workforces and resources to purchase or to build an operation in another country . those company called MNC (Multinational Corporation) . Countries usually welcome FDI because MNCs has many impacts over hosts country economics and political system . FDI is a major decision for any company because its full of costs and risks . MNCs companies has many ways to enter the market of a foreign country considering of many factors like capitalization , legal considerations and market condition, MNCs decide to enter foreign market as Joint Venture , Mergers , Subsidiaries or Acquisitions . When a firm owned 100% by a foreigner , its a wholly owned subsidiary . A joint venture is an organization that is created by two or more companies or with the foreign government they share risk and assets , companies use joint venture to reduce the risk of entering foreign market . ( e.g. Peugeot France has a joint venture with Dongfeng Motor China) A strategic alliance is an agreement between competitors to achieve common goal .(e.g. Airlines Coding share ) Licensing , Franchising Licensing is an agreement where the Licensor (Firm) grants a Licensee (Foreign Firm) the right to use its intellectual property ( patent , logo, formula , etc.) .Licensing can be completely within one country , but its a way that companies use to distribute its products with minimum risk taken , where there is a percentage of profit paid by the licensee to the licensor . Franchising is a form of licensing which the Franchisor (parent firm) offers equipment , material , trademarks , technology à ¢Ã¢â€š ¬Ã‚ ¦ to the Franchisee (investor) , in the other hand the franchisee should pay a fee or a percentage of the profit to the franchisor .(e.g. McDonalds) Franchising is a good way to inter the foreign market because the franchisee will provide the capital for investment and the management and franchisee will deal with customer and labor problems , franchising usually associated with many legal requirements , it depends on the country , un US the federal trade commission is regulating the franchising . in other hand in china they eliminated most of the restriction on franchising . rISK aSSOCIATED WITH INTERNTIONAL BUSINESS TRANSACTIONS sTRATEGIC rISK Strategic risk means the risk of weak or bad strategic decision concerning the competitiveness the firm in the foreign country , its the risk of misanalysing of the porters five forces which are the threat of new entrants , threat of substitute products or services , Bargaining power of customer , Bargaining power of suppliers and the intensity of competitive rivalry . Usually MNCs companies is more concerned about this risk , where a well done study of the market is required before entering the foreign country . An example of a company which failed In the strategic risk consideration . Political risk International managers should understand the substantial effects of political decision making in country before beginning its business , and understand how political decision making can influence its business . Political movements and instability can make it difficult to the company to operate well . International manager should be aware of the ideology of the host country , the economic system ( communism , socialism ,capitalism ) and the political system ( democratic , totalitarianism ) and the structure of the host government , a risk of embargos and sanction of trades which usually used for political pressure rather that economic issues .Understanding the stability of host country political system can avoid many risks , a new and hostile government may replace the friendly relationships and hence expropriate foreign assets .The firm most understand the regional stability and international affairs of the host country . The firm can do political risk analysis to assist in firm deci sion making . operational risk Operational Risk is the risk concerning operational activities , machineries breakdown , supply of resources, logistics and inventory problems .By establishing a good operational risk analysis and evaluation , companies will be able to reduce operational loss, pre-detecting of illegal activities , reducing auditing costs and reduce exposures to future risks , and that well lead to reduce waste and improve processes , it will develop lead-time and add to efficiency in international business . In export Import international transaction , a delivery risk is an operational risk , where a buyer didnt receive ordered goods , it can happen because of workers strike , or delay in the shipment . One form of delivery risk is property risk , and its a loss or damage to the goods before they arrive. The risk of Pilferage can affect all types of trade transaction , specially import export one, this has been a problem for many years , a new way of boxing (cargo) and new technologies entered this sector to minimize the risk of pilferage . country risk When the firm decided to do business broad , it should consider the basic infrastructure needed for the firm operation , that what country risk means . Roads , Bridges and telecommunication, crime rate and corruption , internal conflicts or civil unrest and the economic condition ( unemployment rate , unskilled labor force etc. ) , terrorism , in the host country all that can make it difficult to enter or do business safely ,effectively , efficiently in that country . Country risk can be the Language and Cultural differences and the risk of exposure to foreign law and courts , a Lack of language differences awareness can cause many problems that will end in courts , an example of that , what happened in1975 , United states district court , between Gaskin (US citizen) and Stumm Handel GMBH (German company ) , an employment contract written in German has been signed by Gaskin ,who has no knowledge about German language . technological risk Lack of security in electronic transaction , absence of information technology infrastructure and the cost of rapidly developed technology , all that will result creating problems that will affect doing business in the host country . environmental risk Environmental risk may lead to damage the reputation of the Firm if firms function resulted pollution ( Air , water , environment .etc.) and that will cause risk to the firm .And vice versa if the host country has pollution , that may cause health problem to firms employees . economic Financial risk Changing in domestic fiscal or monetary policies , devaluation or inflation rate , GDP , unemployment rate and the ability of the host country to meet financial obligations , all that make an Economic risk that should be careful understood before conducting international business . In this area, Currency exchange rate can have big effect over international trade and investment decisions taken by the firm . Fluctuations in foreign country currency can diminish profits when the firm convert them back to home currency , some countries may create rules that will minimize the flexibility of the firm to send money outside the country , hedging strategies could mitigate some of the currency exchange rate. In export-Import international transaction a financial risk can be a payment risk , where the buyer will fail to pay for the ordered goods , it will costs a lot specially if the cost of shipment is so high (Because of sensitive or heavy shipments ). Summary The International Business environment has changes a lot in the last decades , with the high competitiveness of international market , International mangers now a days should be aware of economic , political , culture and other differences in the world to be affective in his position . The three main international business types , export-imports , FDI , and Licensing and franchising. In each type of them there are risks that should be considered and pre-determined to be able to build and plan a good strategy that will minimize any risk that may face firm international business.

Advantages and Disadvantages of Biological Control

Advantages and Disadvantages of Biological Control Summary Following numerous discussions of the risks associated with biological control, (see Howarth, 1991; Simberloff Stiling 1996; Thomas Willis 1998) literature was reviewed in order to investigate whether biological control was an environmentally friendly or a risky business. Although a lack of firm evidence suggests that risks may be perceived rather than real, the release of the biological control agent Harmonia axyridis by countries lacking in regulation has severely damaged biological controls reputation and ecosystems all over Europe. Biological control is the most sustainable, cost efficient and natural method of pest management and therefore it should be used to its full potential. Harmonized regulation is required to improve biological controls reputation by preventing the release of risky agents in the future. Regulation should facilitate rather than restrict the use of biological control below its potential. Regulation should be specifically designed for biological control an d should enforce the use of an environmental risk assessment (ERA). Scientifically based methodologies are required to ensure an efficient ERA is conducted for potential biological control agents. An efficient ERA should identify unsuitable agents as early as possible to reduce cost and time requirements. This will allow the continued growth of the biological control industry. Biological control should be utilised as part of Integrated Pest Management to ensure the most efficient control of each pest. Introduction and objectives Insects are the foundations of ecosystems, vectors of disease and agricultural pests around the world (Gassmann et al. 2009). Table 1 shows that as agricultural pests, insects cause economic losses of billions every year. The economic damage caused by insect pests (see Table 1) and the increased consumer demand for blemish free produce has led to the utilisation of different approaches to pest management (Castle et al. 2009). For example, modern pesticides have been used since their development in the 1940s and it has recently been estimated that 8000 metric tons of insecticide (FAO, 2009) are used around the world at an approximate cost of $40 billion every year (Akhabuhaya et al. 2003). The advantages of pesticide use include the short time between application and effect, the eradication of the pest in the area of application and the predictability of success (Bale et al. 2008). The speed and assumed efficiency of pesticides led to their great popularity up to the 1970s when concerns arose about their effects on health and the environmental (see Table 2). The rise in public concern and increased evidence of the negative effects of pesticides (see Table 2) led to the reduction of their use in the 1970s (Chiu Blair, 2009). Pesticides associated with the more serious risks were made illegal, such as DDT in 1984 (Attaran Maharaj, 2000). The great reduction in pesticide use over the last 50 years has allowed other pest management techniques, such as biological control, to be further developed and utilised (Suckling Brockerhoff, 2010). Biological control has received great support due to its natural mechanisms. For example, van Lenteren (2005) estimates that 95% of native insects are already controlled through natural biological control. In addition, a continuous increase in international trade and travel has led to increased insect dispersal between countries (Waage Mumford, 2008). For example, 62,000 pests were reported following an Animal and Plant Health Inspection Service (APHIS) studycarried out on airplane and boat passengers in the USA (Dunn, 1999). Also, there has been a recent increase in the number of crops grown in glasshouses across Europe. Glasshouse conditions are much more suited to invasive insects, so this has allowed increased establishment (Hunt et al. 2008). The movement to reduce pesticide use, popularity of natural control, increased levels of insect invasions and the use of glasshouses to grow crops greatly increased the demand for biological control in the 1980s (Sheppard et al. 2003). Biological control is the use of living organisms to actively reduce the population density of a pest species. A biological control scheme is deemed a success if the pest population densities are lowered to the extent that they are no longer considered an economic or environmental threat (van Klinken Raghu, 2006). Biological control can be further classified as classical, augmentative (inundative) or conservation. Classical biological control is the permanent reduction in the population of an exotic pest species through introduction of its exotic natural enemy. The introduced control agent is required to establish as it is meant for self sustaining control of the pest (Eilenberg et al. 2001). A classical biological control scheme that has reached great success is the use of Rodolia cardinalis against the invasive scale insect Icerya purchasi. Following its accidental introduction into California, I. purchasi was threatening to ruin the Californian citrus industry. R. cardinalis was selected as a monophagous natural enemy and 128 individuals were introduced to California. Populations of I. purchasi were controlled within a year (Frank McCoy, 2007). Classical biological control schemes that only reached partial success, i.e. pest population densities were reduced but the agent did not fully est ablish, led to the development and use of augmentative biological control. Augmentative biological control is the release of natural enemies in an inundative or seasonal inoculative manner (van Lenteren, 2005). Inundative biological control is the mass release of biological control agents to quickly reduce a pest population density (Eilenberg et al. 2001). Inundative control agents are not meant to establish so agents may require reintroduction. An example of this is the mass release of the parasitoid Trichogramma brassicae to control the European corn borer (Ostrinia nubilalis) (Bigler, 1986). Seasonal inoculative biological control is the release of a natural enemy species with the aim that they will reproduce, survive and control pests throughout a crops growing season (van Lenteren Woets, 1988). Conservation biological control is the alteration of the environment towards one more suited to the pests natural enemy. For example, the provision of extra host plants (Anethum graveolens and Coriandrum sativum) for the natural enemies (Edovum puttleri and Pediobius foveolatus) of the Colorado potato beetle (Leptinotarsa decemlineata) (Patt et al. 1997). The aim is a long term increase in natural enemy populations resulting in increased control of pests (Landis et al. 2000). Until the mid 1980s, the introduction of over 2000 natural enemy species and the successful control of over 165 invasive pest species, led to the belief that biological control was an environmentally safe and cost effective alternative to pesticides and GM organisms (van Lenteren et al. 2006a). However, Howarths (1991) argument that there were serious risks associated with biological control was followed by a flood of papers discussing evidence of similar risks (for example, Simberloff Stiling, 1996; Louda et al. 2003). It was recognised that an unsuitable biological control agent may cause the problems associated with an invasive insect. The potential risks of biological control include the possibility that the exotic agent could be poisonous, allergenic or the vector of a disease that is dangerous to humans (Howarth, 1991). Introduced species could become essential crops pests or they could indirectly cause an increase in other crop pest populations (Howarth, 1991). For example, the reduction in target pest species may allow previously outcompeted insects to increase population size to pest densities (Kenis et al. 2009). Biological control agents may kill a plant that other insects rely on for food or shelter (Simberloff Stiling, 1996). For example, the destruction of ash by the Chinese buprestid Agrilus planipennis has threatened the whole Frazinus genus of leptidoptera (Kenis et al. 2009). Further-more, biological control agents may predate or outcompete insects involved in plant in tri-trophic interactions or they may kill plant essential pollinators (Simberloff Stiling, 1996). The greatest risks of biological control are those that impact on the environment. These risks include non target effects (Hokkanen, 2003). For example, the generalist biological control agent Compsilura concinnata has threatened the extinction of six non target Lepidoptera species in North America (Boettner et al. 2000). The effect of a biological control agent on non target organisms may be direct, such as the parasitisation of a non target host when the target is unavailable, or the preference of exotic prey over the target (Simberloff Stiling, 1996; Kriticos et al. 2009). For example, Cotesia glomerata parasitised the non target butterfly Pieris oleracea which is now at risk of extinction (Van Driesche et al. 2003). A reduction in non target population size may reduce their genetic diversity and therefore ability to adapt to future environmental changes (Kenis et al. 2009). Introduced agents may hybridise with native species or be a vector of a disease to which native invertebra tes have no resistance (NRC, 2002). The possible indirect effects of biological control include resource competition (Delfosse, 2005). For example, the introduced parasitoid C. concinnata appears to have outcompeted the native silk moth parasitoid (Lespesia frenchii) in New England (Parry, 2009). Biological control agents may share predators with a native herbivore. This may result in the disruption of natural biological control: reduced predation of the native herbivore may allow its population to increase to pest densities. Severe alterations to the ecosystem may occur if the introduced species affects an ecosystems keystone species or becomes a keystone species (Wagner Van Driesche, 2010). This would alter natural co-evolved relationships (Strong Pemberton, 2000) inducing evolutionary changes (Kenis et al. 2009). Finally, biological control agents may disperse from their area of introduction. This means the risks described are relevant to any neighbouring habitats and countries (Howarth, 1991). The increased discussion of these risks has led to demand for regulation implementing a thorough risk assessment to ensure that only safe biological control agents are released (Delfosse, 2005). Numerous publications have been released by organisations and countries (such as IPPC, 1997; EPPO, 1999; EPPO, 2001; EPPO, 2002; EU-funded ERBIC, 1998-2002; OECD, 2004; IOBC/WPRS, 2003; IPPC, 2005; REBECA, 2007). These publications provide useful regulatory guidelines but they are not legally binding, they are also too vague as they do not state appropriate Environmental Risk Assessment (ERA) methods (Kuhlmann et al. 2006). Many countries have not produced regulations or do not actively utilise them and this has resulted in extremely patchy regulation across the globe. Advocates of biological control argue that the discussions of the potential risks do not provide adequate evidence that observed effects were due to biological control (Lynch et al. 2001). Also, insect invasions occur accidently all the time with little evidence of any harm and therefore, an increase in regulation is not required. To answer the question posed (is biological control an environmentally friendly or risky business?) this review will address the following questions: Are the perceived risks of biological control founded on relevant evidence? What and where are the current biological control regulatory systems? Are ERA methods described and if so are they efficient ortoo strict, expensiveor vague? Do they acknowledge the differences between classical and inundative biological control and are they applicable to both? What should an efficient ERA comprise of? Is biological control compatible with other pestmanagement schemes? Methods The initial literature search was conducted to identify the scope of the topic: Web of Knowledge was used because this search engine has a database holding a wide range of journals. The use of Web of Knowledge also has the advantage of being able to read the abstract before downloading the paper and the search can be restricted to Science Citation Index Expanded to increase the relevance of results. In order to study the full history of biological control, there was no restriction placed on the year of publishing and a range of broad key words were used including insect biological control AND history. Following the initial search and study of primary papers, key areas of interest were identified where further research was required in order to answer the question posed. Papers of interest were found using article reference lists and topic specific searches. These searches were conducted using key words for each area that required more detailed research. For example, papers on the problems associated with pesticide use were searched for using PubMed. PubMed is a biomedical database so was a more relevant search engine for this particular topic. Key words used included pesticide limit* AND human health. Once found, citation searches were used on key papers to help establish their importance and accuracy. Boolean operators were used to combine keywords in the Topic search. An asterisk (*) was typed at the end of words that could have various endings. This allowed a wider search including titles with singular and plural word forms. The OR operator was used between possible key words to allow for variation in terminology. When a search found too many results (over 100), AND or NOT were used between words and more specific key words were identified to help make the results more relevant. More specific keywords were identified using terminology that was common in the titles of interesting papers. When a search resulted in less than 100 papers all abstracts were read. If the abstract suggested the paper might provide evidence towards answering the question posed, the full paper was read. This search strategy allowed the efficient search of specific papers relevant to each area of interest. Key Papers Effects of a Biological Control Introduction on Three Non-target Native Species of Saturniid Moths Boettner et al. (2000) Conservation Biology, 14, 1798-1806. To answer the question posed, (is biological control an environmentally friendly or risky business?) this review needs to consider whether or not the risks discussed for biological control are founded on relevant evidence. Examples used to demonstrate non target effects are often criticized because they do not account for native predation causing non target mortality (Lynch et al. 2001). This study is pioneering as it is the first to directly assess the non target effects of the classical biological control agent Compsilura concinnata and compares these effects to native predators. The effects of C. concinnata on the non targets Hyalophora cecropia, Callosamia promethean and the state endangered Hemileuca maia maia were studied. This experiment was conducted following observations that these non target species populations had declined since the introduction of C. concinnata. Cohorts of 100 H. cecropia larvae, densities of 1 100 C. promethean larvae and wild H. maia maia eggs were observed in the field. The percentage mortality of each species that was due to C. concinnata was calculated. Boettner et al. (2000) found that 81% of H. cecropia mortality was due to C. concinnata (see Table 5). 67.5% of C. promethean larvae and 36% of H. maia maia mortality were also found to be due to C. concinnata. Boettner et al. (2000) found that C. concinnata was responsible for the majority of non target deaths and that the numbers of individuals surviving may be less than the minimum viable population size for each species. Biological control should never result in a loss of biodiversity (Kuris, 2003). Methods utilised were supported by previous studies and were conducted in realistic conditions. This is important because host selection is effected by physiological conditions including the availability of hosts (van Lenteren et al. 2006b). However, the species were reared in a laboratory before and after exposure to parasitoids. This is undesirable as larvae were reared in unnatural conditions which could alter the parasitoids host selection (van Lenteren et al. 2006b). In addition, repeats should have been conducted for each experiment to allow for natural variation in host selection (Bigler et al. 2005). Although this paper accounts for mortality due to native predators, it is still limited by the assumption that the observed reduction in saturniid moth populations was due to increased levels of predation. Other possible reasons for non target population declines and the parasitisation rate prior to the introduction of C. concinnata require consideration. Van Lenteren et al. (2006b) states that firm evidence non target population declines are due to biological control is often lacking. Therefore, it may be argued that this study does not provide substantial evidence that C. concinnata has caused the observed decline in non target populations. Overall, Boettner et al. (2000) provide evidence that C. concinnata parasitises non target species. Since its initial release in 1906, C. concinnata has been observed parasitizing over 180 native North American species. In combination with other evidence of non target effects and with the knowledge that non target studies are rarely conducted following introductions, this study assists in the argument that non target effects are a reality (Louda Stiling, 2004). Therefore, biological control has the potential to be environmentally risky. Changes in a lady beetle community following the establishment of three alien species Alyokhin Sewell (2004) Biological Invasions, 6, 463-471. The successful introduction of Rodolia cardinalis was followed by the introductions of numerous coccinellids without a thorough risk assessment (van Lenteren, 2005). As a result, many indirect effects have been recorded. However, numerous experiments that appear to provide evidence for indirect effects have been criticized because they took place over such a short time scale. This means that limited conclusions can be drawn because they do not allow for natural variation in species abundances (Alyokhin Sewell, 2004). Long term research is required in order to provide adequate evidence for the indirect effects of biological control. This is particularly relevant to coccinellids as they are known for population fluctuations (Alyokhin Sewell, 2004). This paper provides evidence of the biological control agents Harmonia axyridis, Coccinella septempunctata and Propylea quatordecimpunctata competitively displacing native coccinellids. This paper is pioneering as the change in coccinellid populations was observed over a 31 year period so it allows for natural variation. Alyokhin Sewell (2004) found that prior to 1980 the majority of coccinellid species recorded were native. Following the establishment of C. septempunctata in 1980, native species were outcompeted; the abundance of C. septempunctata increased from 6.1% in 1980 to 100% in 1994 (see Figure 1). In 1993 and 1995 P. quatordecimpunctata and H. axyridis established respectively (see Figure 1). Alyokhin Sewell (2004) concluded that the increase in exotic coccinellid establishment was strongly correlated with a statistically significant decline in native coccinellid populations. This study provides evidence for the indirect effects of biological control. The methodology allows for natural population fluctuations and both methods and results were supported by previous studies (such as Brown Miller 1998; Elliott et al. 1996). However, controls were obtained from an archive, this is undesirable as it does not ensure the use of the same protocol. Experiments should always include appropriate positive and negative controls to enable the drawing of accurate conclusions (van Lenteren et al. 2006b). In addition, this study does not consider other factors that might have affected native species populations such as temperature and other native species. The establishment of exotic coccinellids did not result in the total displacement of native species; native species were present throughout the study in reduced abundance. This may indicate that although competition took place, it was not substantial enough to place the native coccinellids at risk of extinction. Therefore, it may be argued that the benefits of aphid control are worth a reduction in native coccinellid populations (Pearson Callaway, 2005). In addition, this study is further limited as it took place on a potato field and potato is exotic to the area. Therefore, this experiment may not reflect the effects of an introduction exotic insect to a naturally evolved ecosystem. For example, potato and native coccinellids did not evolve together and this may have provided exotic species with a competitive advantage (Strong Pemberton, 2000). Despite the limitations discussed, this study provides evidence of habitat displacement in biological control. Alyokhin Sewell (2004) utilised appropriate statistical tests to provide valuable insight into the change in native species populations following biological control agent establishment. The regulations and assessments under which biological control agents such as H. axyridis and C. septempunctata were released needs to be reassessed to ensure biological control is environmentally safe. Harmonia axyridis in Great Britain: analysis of the spread and distribution of a non-native coccinellid Brown et al. (2008) BioControl, 53, 55-67. Harmonia axyridis has been released to control aphids and coccids across Europe (for example, Ukraine in 1964, Belarus in 1968, France in 1982, Portugal in 1984, Italy in 1990s, Greece in 1994, Spain in 1995, Netherlands in 1996, Belgium in 1997, Germany in 1997, Switzerland for a short period in the 1990s before it was deemed too risky and finally, Czech republic in 2003). Since its introduction into these countries, H. axyridis has also been observed in Austria, Denmark, the UK, Liechtenstein, Luxembourg, Norway and Sweden (Brown et al. 2007). This paper provides evidence of H. axyridis dispersal into Great Britain, where it has never intentionally been released. This paper was selected as unlike other countries, Great Britain has monitored the spread of H. axyridis since its initial arrival in 2004 (Majerus et al. 2006). Brown et al. (2008) utilised a web based survey to follow the dispersal of H. axyridis across Great Britain. Between 2004 and 2006, the analysis of 4117 H. axyridis recordings indicated that H. axyridis dispersed an average of 58 km north, 144.5 km west and 94.3 km north-west per year. The increased western dispersal rate is suggested to be due to multiple invasions from the European mainland. H. axyridis recordings increased by an average of 2.9 fold each year and the mean number of adults per recording increased from 2.9 in 2004 to 6.2 in 2006. The results from this study indicate that H. axyridis has invaded Great Britain on multiple occasions and through multiple methods. For example, a single northern population of H. axyridis was recorded in Derby. This indicates that this population must have arisen from a separate invasion than those populations spreading across the UK from the East. Public recordings were verified before inclusion in the analysis. Although this would have increased the accuracy of results, 4316 recordings were not verified so were not included. Some of the non verified recordings were likely to be H. axyridis but verification was not possible. Therefore, the analysis in this paper could be a huge underestimate of the actual dispersal and abundance of H. axyridis across the Great Britain. This data set is also limited due to the uneven spread of human populations across Great Britain. This would have resulted in a variation in the frequency of recordings in different areas. Therefore, these results may not accurately represent the species abundance. This paper demonstrates that the currently inconsistent regulation for biological control across Europe is not adequate. The release of a biological control agent in one country will inevitably affect neighbouring countries. For example, H. axyridis has never been intentionally released in the UK but it has been estimated that since its invasion, H. axyridis could negatively affect 1, 000 of Great Britains native species (Majerus et al. 2006). The release of H. axyridis provides evidence that patchy regulation is a risk of biological control in itself. Review of invertebrate biological control agent regulation in Australia, New Zealand, Canada and the USA: recommendations for a harmonized European system Hunt et al. (2008) Journal of Applied Entomology, 132, 89-123. Whilst the potential risks of biological control have only recently been acknowledged in Europe, they have been recognised and regulations have been implemented to avoid them for over forty years in Australia, New Zealand, Canada and the USA. Following a thorough and pioneering review of current regulation, Hunt et al. (2008) have discussed the adaptation of some concepts for Europe. Hunt et al. (2008) found that although most European countries have regulation in place, only eight countries utilise them. Therefore, like Australia, New Zealand, Canada and the USA, Europe requires the passing of legislations to enforce the safe use of biological control. Australia is the only country to have a governing body specifically for biological control. Regulations in New Zealand, Canada and the USA fall under plant, conservational, environmental or endangered species Acts (Hoddle, 2004). Europe requires an EU level body and regulation specifically for insect biological control. This body should cover both environmental and agricultural issues and should be composed of experts representing each country. The EU body should implement regulations across Europe and should make decisions for the release of biological control agents. Like Canada, the USA, Australia and New Zealand a group of scientific experts should be utilised to review applications and recommend decisions to the EU body. This will ensure the decision for each introduction is based on the opinion of experts covering a broad range of expertise. Following the establishment of an EU wide body and the passing of legislation, scientifically based ERA procedures need to be developed. In both Australia and the USA, approval is sought for the non target list prior to host specificity testing, however, this may restrict the ideally flexible nature of host specificity testing where species should be added or removed when appropriate (Kuhlmann et al. 2005). Hunt et al. (2008) suggest European regulation should follow New Zealand by involving discussions with experts. This will ensure the consideration of all risks, costs, benefits and the use of a scientifically based ERA. Discussion with experts will also reduce costs and time wasted on projects that do not have potential or are not being completed in an efficient manner. This paper uses examples from the USA and Canada to demonstrate that a regulatory body over the whole of Europe is possible. It also emphasises the importance of utilising previous experiences of regulated countries to implement effective regulation in Europe. However, Messing (2005) argues that the USA has unresolved legislative problems between their federal and state governing boards. For example, Hawaii has such strict ERA regulations that the use of biological control is hindered and the federal ERA regulations are insufficient as they do not involve adequate application review. In addition, Cameron et al. (1993) argues that only 24% of biological control projects in New Zealand have been a success. Goldson et al. (2010) adds that Australian and New Zealand legislations are too strict. For example, in order to receive approval for release, evidence is required to prove agents do not pose any risks but this is often impossible due to time and cost constraints. Care is required when reviewing the regulation of biological control in other countries. The presence of regulation does not necessarily mean it is enforced and information from government employees may be susceptible to political issues. Europe wide legislation is required but time and cost constraints need to be taken into account. In conclusion, regulation is needed to enforce the environmental safety of biological control but it should not restrict its effective use. Establishment potential of the predatory mirid Dicyphus hesperus in northern Europe Hatherly et al. (2008) BioControl, 53, 589-601. Many guidelines have been released for an ERA (such as EPPO, 2001; NAPPO, 2001; IPPC, 2005) but none state a clear and effective methodology to test for establishment. As a result of this, climate matching has been widely accepted as an efficient predictor of establishment (for example, Messenger van den Bosch, 1971; Stiling, 1993). However, the augmentative biological control agent, Neoseiulus caliginosus has proved its inadequacy as individuals with diapause ability were released unintentionally (Jolly, 2000). McClay Hughes (1995) use of a degree-day model to predict establishment potential has also been criticized due to its labour intensive nature (McClay, 1996). In addition, the numerous methods utilised to determine developmental thresholds have led to differing conclusions for the establishment potential of the same insect (Hart et al. 2002). Hatherly et al. (2008) utilise a clear and scientifically based methodology for a test for establishment that should be used as an alt ernative to climate matching and day degree models. Each experiment involved treatments of fed and unfed first instar nymphs, adults and diapause induced adults. Supercooling points (SCP), Lower lethal times (see Figure 2) and temperatures were determined. Field experiments were completed to study the effects of naturally fluctuating temperatures and a control experiment was conducted to ensure experimental conditions did not damage the mirids. Statistical tests (one way ANOVA and Tukeys HSD test) found no significant differences between the SCP (-20oC) for different life cycles and Ltemp90 was found to be -20.4oC for diapausing insects. After 140 days in the field, 5% of fed nymphs and 50% of fed diapausing adults were alive. After 148 days, 15% of fed non diapausing adults were alive. Following transfer to the lab, the survivor adults were observed laying viable eggs. Overall, it was concluded that D. hersperus were able to diapause and individuals from each life cycle were able to survive outdoors in the UK. Feeding increased survival times and the polyphagous nature of D. hersperus meant it was likely to find food. Laboratory methods to test the establishment potential of possible biological control agents need to be environmentally relevant (Hoelmer Kirk, 2005). To determine SCP, the rate of temperature decrease was 0.5oCmin-1, this could be reduced to make it more realistic. Mortalities for lower lethal temperatures were recorded after 24 and 48 hours, however, winter lasts for four to six months. In this case, this was appropriate as 90% mortality was reached at each temperature exposure within the timescale. To make this study more realistic, it was ensured that D. hersperus was experimented on in the condition received by commercial buyers. To ensure that the results did not occur by chance, lower lethal temperatures and time were determined in addition to SCPs (Bale, 2005). To determine establishment potential, both b