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They have, on average, a thirty-five to forty percent increase in the number of scheduled departures and hub-and-spoke operations have made an increased number of destinations available to them. Airlines have cut frills during our current economic downturn, but the success of no-frills, low-cost airlines such as Southwest Airlines which do not offer many traditional amenities indicates that a substantial proportion of passengers are more swayed by price than comfort (Airline Deregulaton Act) .y far the most important aspect of customer service, safety, has increased under deregulation. Accident rates during the twelve-year period from 1979 to 1990 were twenty to forty-five percent below their average levels in the six or twelve years before deregulation (Kahn, Airline deregulation). Moreover, by displacing a certain amount of automobile travel, the low airfares made possible by deregulation have saved many more lives than the total number lost annually in air crashes.
Surprisingly, consumers enjoy…… [Read More]
Marketing Strategies Changed Since Deregulation
The objective of this study is to describe how marketing strategies have changed since deregulation. It is reported that over the past 25-year that the transportation system in the United States has undergone dramatic changes in both "size and form as it carried ever-increasing numbers of passengers and volumes of freight, both domestically and internationally." ( ) The demand for transportation services has been due to a population that had increased staidly in addition to the increase in the numbers of "passengers and volumes of freight, both domestically and internationally." ( p. 1) There are reported to be other forces that have impacted the growth of the transportation system and this includes deregulation of the "aviation, rail, motor carrier and maritime shipping industries over the past 25 years." (, p. 1)
Urban Wallace Associates reports that deregulation has resulted in changes in the…… [Read More]
The Glass-Steagall Act of 1933 was the first major attempt at regulating the financial industry. The Act was passed by President oosevelt with the objective of restoring public confidence in the banking system. Glass-Steagall sought to, among other things "prevent the undue diversion of funds into speculative operations," in response to the market crashes that had sparked the Great Depression (Maues, 2013). The reason for this was simple -- speculation was always a temptation for the banking industry, and if left unchecked the industry was likely to indulge in more speculation than the financial industry could sustain while performing at a high level of health and public confidence.
It has been argued that Glass-Steagall, for decades, had been able to prevent the type of accumulation in speculative assets within the banking system that occurred in the 2000s. Commercial and investment banking had been separated for this time, which meant…… [Read More]
Impact on Commercial Airline Industry as a Result of Deregulation
The airline industry in the United States began functioning almost as soon as the right brothers made their first flight at the Killdevil Hills in North Carolina. In 1903, mail began to be carried by airplanes over short routes, so the United States government created an agency to help regulate how this was accomplished to make it safe for carriers. This agency, called the Civil Aeronautics Board (CAB), first regulated mail carriers (since there were no passenger flights at the time), but when passenger flights began the board also dealt with how people would be moved also. The CAB was responsible for all areas of passenger flight such as ticket price, awarding of routes to different carriers, and how the planes were to be maintained. Because the CAB sometimes chose routes and different rewards in favor of one…… [Read More]
egulation and Deregulation
Prior to the 19th century, most people would have voiced their support for the "concept of laissez-faire, a doctrine opposing government interference in the economy, except in" the maintenance of law and order (U.S. Department of State, 2014). The turn of the 19th century, however, saw attitudes begin to change, and labor movements as well as small entrepreneurs asking the government to intervene, following the apparent failure of the market forces to allocate resources efficiently. This text answers the above question by providing real examples that are proof enough that the government ought to be the catalyst for innovations in all sectors because reliance on bubble-driven, market-controlled growth is both precarious and unsustainable.
At the start of the 19th century, the U.S. had no industry in its name and only survived by growing cotton, and later on, exporting the same to England. After being turned into clothes…… [Read More]
Deregulation in the European Airline Industry
The European airline market:
Transport is one of the key sectors in Europe with commercial, economic and cultural implications for the European Union citizens. It accounts for over 10% of Europe's GDP and provides jobs to nearly 10 million people. In the last two decades, air transport has shown the maximum rise in passenger volumes, with an average annual growth rate of 7.4%, in terms of passenger per kilometer. Passenger strength rose by 19% during the period 1998-2001, driving demands in the European air markets. Since 1970, cargo traffic moved by air transport has increased five-fold. More than 25,000 planes fly over the European skies on a given day. The European Union is likely to have additional population of some 75 million in the medium term, as ten countries are expected to join the Union in the near future. These countries shall become party…… [Read More]
Airline Deregulation on Aviation Safety
This paper looks at the deregulation and the impacts it has had on the aviation industry. It details the changes that have taken place since deregulation act became effective. The main focus of the paper is safety in the aviation industry whereby the various maintenance procedures have been discussed shading light on the importance of carrying out the right maintenance to guarantee safety of the aircraft personnel and the travelling public. Training of the personnel being the most important aspect in ensuring safety standards are met have also been widely looked into and discussed, detailing the need for qualified and competent crew. In conclusion the safety evaluation measures have also been stated and an analysis of how they are carried out across the globe has been widely discussed with safety being the main focus.
The airline industry has witnessed a significant change over the…… [Read More]
POST-9/11 Management OF U.S. AILINE INDUSTY
Strategic Management of the United States
Airline Industry after the 9/11/2001 Terrorist Attacks
Strategic Management of the United States
Airline Industry after the 9/11/2001 Terrorist Attacks
Airlines in the United States have a long, complicated history in terms of management strategy that includes alterations due to technological advances, bankruptcies, economic downturns, deregulation and even presidential intervention, but none of these forces had the power to both destroy and restructure the industry like the events of September 11, 2001.
The 9/11/01 attacks on the United States fundamentally altered the way the U.S. airline industry operated both publically and internally. One area that suffered significantly from these attacks, and brought about the need for major overhaul within the industry itself was strategic management strategies and practices within the airline industry in its entirety. The 9/11 attacks on America brought about the need for immediate change in…… [Read More]
" (1999) eported as being potential dimensions for disaggregation are those of "market, season, month, week, section of week, segment, and itinerary." (McGill and yzin, 1999)
American Airlines experienced dramatic growth when other airlines were going bankrupt through increasing its capacity. American Airlines is reported as a prime example of an airline that grew successfully during the years that TWA and other failed. United Airlines held a strong financial position as well that assisted the airlines in weathering the reduction of flights and a steep decline in travel while other airlines failed miserably winding up in bankruptcy. American Airlines managed to bring about a reduction in costs while other airlines including TWA simply could not find a way to reduce costs, which was further stressed by the airlines lack of a solid financial base. In the airlines industry, just as in other industries the ability to profit on a higher…… [Read More]
27-29) This provoked financial demands and awareness of the people in different parts of the world. People and businesses are dissatisfied with the traditional financial systems due to lack of opportunities for investors. Businesses today require more diversified portfolios for investments because this will reduce their investment risks and increase the probability of future capital flows.
Increased capital mobility has increased the importance of exchange rates which is serving as a monetary policy channel in some industrialized economies. In mid 2000s, there was a sharp shift in the flow of international investments and savings (geographic pattern) resulting in the segmentation of current account imbalances. This was also a major contributing factor. Additionally, the domestic financial markets were also affected by the change in regulatory environment. The two important factors for this are as follows:
1. apid growth of OTC (over-the-counter) markets of derivatives in terms of complexity as well as…… [Read More]
As a response to the savings and loans debacle, there have been several attempts by congress and other governmental agencies to assists consumers and some financial institutions alike. The most significant and some say extreme solution thus far came when the Federal government assisted JP Morgan with the purchase of Bear Stearns for $2 per share.
One of the most discussed solutions has to do with baling out the mortgage lenders and assisting borrowers. There are several different remedies that have been proposed. These remedies include everything from a moratorium on foreclosures to the freezing of interest rates.
As it pertains to the mortgage companies it has been suggested that limits should be lifted so that companies can purchase jumbo housing loans. According to one article this type of mortgage relief could help staunch the hemorrhaging in high-priced housing markets...where buyers have had difficulty getting loans and are paying…… [Read More]
Many airlines have faced difficult times after deregulation, and the problems were exacerbated by the downturn in air travel after 9-11. Smaller airlines like Northwest Airlines have had even more problems, and yet Northwest in particular persists and so far has voided going out of business in spite of a series of threats, including poor traveler performance, lowered expectations in business terms, labor problems, and so on.
Before deregulation in the 1970s, many had speculated as to how it would affect the structure of the airline industry, and the prevailing view was that deregulation would lead to a substantial consolidation of the industry, leaving some four to six large systems, each centered around one of the major prederegulation trunks. It was believed, for example, that American Airlines, Delta Airlines, Northwest Airlines, United Airlines, and TWA would be among the survivors because of financial strength or protected international franchises.…… [Read More]
137). Across the board, then, technological innovations will not only be a key driver of business in the coming decade, they will also facilitate the effects of the other key drivers of business discussed herein. For instance, the editors of World Economic Outlook (2002) point out that, "More trade integration is usually associated with more international financial integration, as they respond to many of the same technological and policy factors" (Trade and financial integration, p. 108). As the current fourth generation technologies are replaced by fifth and sixth generation technologies, these trends will likely become even more accelerated over the next 10 years. As Wiedmann and his associates point out, "Up-and-coming technologies like radio frequency identification and future trends like ubiquitous computing, ambient intelligence, and the connected (smart) home scenario have gained special attention in both research and business practice" (p. 137).
This paper provided a review of the…… [Read More]
Describe the industry and explain the general pattern of change of the particular market model.
Since the 1990s, the electric utility industry has been going through tremendous amounts of deregulation. This is because the monopolistic model made them ineffective in delivering different services. When this happened, consumers began to experience dramatic increases in the costs for their utility bills. In general, this was considered to be a naturalistic monopoly, as the government regulatory agencies could protect the interests of consumers. However, after it became clear that this approach was ineffective, is when there was a transformation in these strategies. This occurred with many governments around the world opening the marketplace to foreign competitors or selling their assets to private individuals / entities. (Griffin, 2005, pp. 39 -- 110)
Moreover, the increasing demand from consumers meant that this model was simply unsustainable. Evidence of the can be seen with…… [Read More]
due to changes in the economical, financial, political and technological changes, the capital markets across the world are highly influenced by the changes. As compared to the past, the development in the financial sector has been observed to be at the highest rates. In order to understand and analyze the changes in the global capital markets the below report has been constructed.
Based on the theme idea, which is the change in the capital market due to many factors and elements, the report below tends to discuss and analyse the impacts of financial deregulation and capital control on financial globalization and international diversification. This will allow understanding of how these two elements are supporting the financial globalization. A part from this, the report will also analyze the role of financial innovation and advancements and technologies on international investments. Moreover, the risks and benefits that are associated with the carry trade…… [Read More]
Repatriation of profits have proven to be a problem as well. Fourth, as stated by Staff (2004) is the challenge presented by poor training in the sector which is stated to be "...weak both at a practical level as well as at a higher strategic level" and the problem has only been exaggerated due to the government and other regulatory authorities in China to promote logistics programs." (Staff, 2004) the fifth challenge stated is in relation to "information and communications technology" in China characterized by a: "...lack of it standards and poor systems integration and equipment. At a very basic level, the consistent supply of energy is also problematic leading to interruptions to communications through power outage." (Staff, 2004) Sixth presenting in the way of a challenge is the "undeveloped domestic industry" due to fragmentation of the logistics sector in China that is: "...dominated by commoditized and low quality transport…… [Read More]
Many countries signed treaties and trade agreements that that allowed financial institutions to move beyond international borders while bypassing significant regulations.
However, there is evidence to support the fact that the Gramm-Leach Bliley Act, that essentially repeal the Glass-Steagall Act, increased the bank failure rate, affect the cost of funds, and also increased stock market volatility (Cebula, 2010). Many people have actually proposed that a form of the Glass-Steagall Act be reintroduced. The U.S. Congress attempted to sign into law a Financial Reform Bill by the fourth of July, 2010 that was intended to re-enact Glass-Steagall type reforms to ban banks from speculative trading with depositor's money, introduce a consumer protection bureau to police credit products, and empower the government with authority to seize failing systemically important institutions (Lopes, 2010). However, not all of these items were instituted. Furthermore, deregulation is still a problem while markets to have continued to…… [Read More]
1926, Yellow had been in the transportation industry. he deregulation of the transport industry saw the company decline in revenue because of the introduction of smaller and flrxible competitors. As an old company, it followed a non-viable method of operation and was run like a family business, with a degree of autocracy. he company had no vision, a narrow focus and lacked customer-orientation.
o counter the declining business opportunity as a result of inefficient operations, the company undertook system-wide changes to improve on the provision of better quality services. It adapted the use of technology. It specifically focused on the internet to help turn around faster and reinvent newer operations and logistics to meet the demands of the new economy. With the technological advancement, the company was able to focus on customer orientation in order to be competitive in positioning. It came to the realization that the key to growth…… [Read More]
They compete with each other for business, seek to build both aviation and non-aviation revenue streams and they must also deal with enhanced security requirements. This places significant pressure on the airport sector. The response within the sector has been twofold. Some airports have become privatized, which allows major airport operators to utilize their expertise across a range of markets. The other solution is the development of public airports that serve as branches of their governments, attracting passengers and investment to the region. Both types of airports have strong, multifaceted strategic mandates and are among the vanguard of modern air transportation.
Babu, V., Batta, R. & Lin, L. (2004). Passenger grouping under constant threat probability in an airport security system. European Journal of Operational Research. Vol. 168 (2) 633-644.
Barnard, B. (2010). Global air cargo revenue grows 40%. The Journal of Commerce. Retrieved November 8, 2010 from http://www.joc.com/air-expedited/global-air-cargo-revenue-grows-40-percent…… [Read More]
Information System/Internet Strategy
Information technology and Internet systems have become such an integrated part of life today that all businesses of any significant size have at least some form of electronic media as part of their daily operations. Indeed, it is difficult to imagine how any business could function without at least an e-mail platform or an electronic database connection. What I have learnt about decision making, the role of information, information systems, and knowledge management should help me in my current job situation, when thinking critically about the ways in which other businesses conduct their operations, and in constructing my own operations should I be a business owner in the future. This knowledge can be applied to my current work situation at the telecommunication company Orange, as well as to a group investigation I was part of for the Manchester University.
The Orange company, where I am currently employed,…… [Read More]
nature project, sources information plan, important concepts techniques applied. You receive feedback proposal Instructor Week 6, give time make adjustments.
Proposal for new strategic endeavors of production, pricing and resource utilization at Ford Motor Company
In the context of the global economic recession, the American automobile industry faces demise. Out of the three main players in the United States, Ford Motor Company has rejected the bailout from the government and has focused its strategy on internal restructuring. As part of this effort, the future project would set out to provide some recommendations of how the company can reshape its production, pricing and resource utilisation strategies in an effort to create more value for the organisation.
With the commencement of the 2007 economic crisis, the American automobile industry has been facing endless challenges. The number of customers has decreased, as has their purchase power and the subsequent demand for the…… [Read More]
Sometime the debtor is able to successfully reduce its liability and returns to profitability but quite often it returns to seek the court's protection again and sometime the end result is liquidation.
Under Chapter 11 protections, the debtor gets an automatic protection from all creditors. The unsecured creditors cannot lay a claim on assets and secured creditors are also prevented from foreclosing on their collateral. A Chapter-11 company also gets the advantage of discarding or renegotiating union agreements, ability to freeze or cut wages and benefits and restructures its staffing requirement. Retirement and pension plans can also be reviewed or the company can transfer its pension obligations to the Federal Pension enefit Guaranty Corporation.
The reorganization is carried out by the bankruptcy and the court appointed trustee. The trustee appoints committee(s) to represent the creditor's interests and work out a plan for reorganization of the company. The reorganization plan must…… [Read More]
U.S. Airline Industry
Structure of the Industry
Deregulation Act of 1978
US Airline Industry During the 1980s
US Airline Industry During the 1990s
The Next Decade for the U.S. Airline Industry
Issue of Fuel
Future for the Global Airline Industry
Airline Industry worldwide in general and United States in particular has played a central role in stirring the growth of the world economy. With USA appearing on the world map as one of the most developed nations in the world, it's Airline Industry and its growth and now its current travails provide us with interesting insights and a case study as to how an industry can grow tremendously supported by government actions as well as market forces and then major external factors mainly political and economic can affect the progress of overall industry.
The research is conducted mainly from the websites.
CONCLUSION…… [Read More]
Regulation in Accounting
Regulator Battle (The Economist, 2009)
The importance of regulation is often overlook or even mocked in society. Regulations and the regulators that administer them are often portrayed as something that slows progress and makes it difficult to navigate the complexities that adherence to the regulatory requirements require. It is easy for people to view regulations from this perspective because when regulations are effective and properly designed they may seem unduly burdensome. However, when regulations break down or are ineffective it is far easier to see the value of regulation. People commonly do not actually appreciate the value of regulation until they have an example in mind that stands in recent memory. This is summarized in a statement by Tim Geithner after the global recession emerged in 2009 which said, "You want to move at the point where people still have the memory of the trauma" (The…… [Read More]
It should not be treated as a separate exercise undertaken to meet regulatory requirements." (ICA, 29) Here is expressed a philosophical impetus that drives the focus of this research, that such compliance which will generally concern matters such as corporate accounting, the practice of internal oversight and the practice of financial transaction must be considered inextricable from other aspects of practical, procedural and legal operation in terms of its relevance and necessity.
The practice of corporate governance may perhaps best be understand from the perspective that deregulation has largely defined the processes and direction of the global economy across the two decades following the Cold ar and its inevitable opening of economic channels. This is because in practice, corporate governance is a concept which has suffered much neglect. To the point, the statistics availed by organizations such as the orld Bank and the International Monetary Fund illustrate that…… [Read More]
Big Businesses in Australia Use Highly Paid Lobbyists or Circumvent egulations
In its relations with government, big business in Australia usually gets its own way either through the influence of highly paid lobbyists or through the capacity to circumvent regulations.
In the recent few years, the Australia government has promoted an economic liberalization task through a deregulation and privatization process. Deregulation of the media sector is now on the agenda. In 2006 Senator Coonan, Minister for Communication, Information Technology and the Arts launched a government structure for modern deregulation of the media sector (Arup, 2006). Included within the deregulation structure is a suggestion to relax the present media ownership regulation. This document will temporarily summarize the present Big business ownership in Australia and talk about the reasons for such control. This will be followed by a research of the different justifications for and against deregulation.
Arguments for deregulation consist of…… [Read More]
1980s Affecting Corporate Finance
From about the mid 1980s, the trend has been for companies, especially large ones, in industrialized countries to seek financing directly from financial markets rather than borrowing from commercial banks. This practice was motivated by various changes affecting corporate finance (Topsy-turvy, 1986). The main external source of corporate financing currently can be traced back to these past developments although more recent developments are also important.
Two changes traced to the mid 1980s that affected corporate finance were deregulation and internationalization. Deregulation caused increases in the cost of loans from commercial banks and in the number and types of entities offering financing (Topsy-turvy, 1986). Deregulation of interest rates permitted banks to pay higher rates for deposits, eventually increasing the price for loans. Consequently, it was cheaper for top-rated companies to obtain money by issuing commercial paper than by borrowing from banks. Deregulation also allowed more entities to…… [Read More]
Toward the end of the decade, Wall Street investment firms began hiring PhDs in mathematics and physics to create incredibly complex algorithms capable of modeling elements of the stock and futures markets. In most cases, the creators of these algorithms knew next to nothing about the financial industry, and the executives who employed them knew (literally) nothing about the mechanisms their firms had begun to rely on for their trading strategy. Destabilization of the Home Mortgage Industry:
In the early 1970s, stock analysts at Salomon Brothers, another Wall Street investment firm, developed a new kind of security based on home mortgages, called mortgage-backed securities. In principle, this allowed the conversion of illiquid (i.e. non- tradable) assets like the debt represented by home mortgages to be converted into a tradable commodity for profit. This new form of commercial transaction evolved into incredible levels of complexity after the widespread incorporation of mathematical…… [Read More]
" (Schlossberg, 2004)
FERC analyzed while making a review of the electric utility mergers proposition, the transaction being proposed "likely effect" on (1) competition;
(2) rates; and (3) regulation. (Schlossberg, 2004)
There are stated to be "no antitrust exemptions for transactions subject to FERC review and such mergers are regularly reviewed by either the Federal Trade Commission (FTC) or the Division." (Schlossberg, 2004) The Securities and Exchange Commission had previously held jurisdiction for reviewing acquisitions of stock of electric utility companies however, the authority provided under the Public Utilities Holding Company Act of 1935 was repealed in 2005.
III. FORESEEAILITY DOCTRINE REHAILITATION
The work of Trujillo (2006) entitled: "State Action Antitrust Exemption Collides with Deregulation: Rehabilitating the Foreeseability Doctrine" states that a capitalist society that has policies which were established for the purpose of regulating "the promotion of competition in traditionally regulated industries such as the electrical market seems counterintuitive.…… [Read More]
S. domestic carriers are at period in the industry's history when these factors are already beleaguered by downturns in the global economy, increasing competition from international carriers, and the aforementioned high costs of energy.
Chapter 2: The Impact of Open Skies Agreements on Domestic and International Carriers
Under an open skies agreement, both signatories to the agreement enjoy open access to international airline routes between the two countries as well as eliminating virtually all domestic restrictions on international carriers (Lick, 1998). In an effort to develop more closely integrated pricing and route schedules, signatories to these agreements typically also seek to gain immunity from national antitrust laws (Commercial aviation: Legacy airlines must further reduce costs to restore profitability, 2004). The U.S. Department of Transportation reviews these types of airline alliances from an antitrust perspective and refuses to approval an alliance without a reciprocal open skies agreement with the foreign airline's…… [Read More]
S. no-fly list," n. d.)
Deregulation of Canadian airline industry has resulted in speedy consolidation, lack of consistent service, and high prices which is just the reverse of what the policy makers assured in 1987. Following the emergence of Air Canada as the sole national airline, Canadian travelers will possibly suffer more from excess booking. As against the primary markets, the regional markets encounter the double problem of falling quality of service standards and higher prices. For instance the analysis of costs, prices and profits recommend Air Canada's regular return air tickets from Thunder Bay, Ontario to Toronto could be lowered reduced by 75% in case they showed considerably efficient operating expenses. The fares for travel to far-off areas can be kept on the higher side as the operating airline usually enjoys a monopoly status. Apart from that, these higher than competitive prices subsidize the bigger regions and pose a…… [Read More]
The article that was written by Conley (2011) discusses the impact that collateralized debt obligations (CDO's) would have upon the subprime loans. These were created in 1987, by the Wall Street firm Drexel urnham. In this product, the investment bankers would take a number of different articles and combine them together as one investment. The various assets that were used included: junk bonds, mortgages and other high yielding investments from the debt. The idea with these different products is that the investment bank could offer customers a stated return on their investment. The way it worked is the brokerage firm would distribute each investor, the stated amount of returns that they would make off of the tranche (the CDO investment). This was derived using a complex mathematical formula that would divide the total amount of interest that was received, from the various high yielding products that were inside the CDO.…… [Read More]
The government is expected to offer skilled workers with a scheme through which the employees can achieve work experience, employment assistance. The Canadian government has already planned to include the services of the third party, the purpose of which is to extend the scope of the current agreements, and to modify the new agreements to honor contractual arrangements. The labor market has been revolutionized through this agrrement, the federal employees who feared termination of their services after the implementation of LMDA, are like to be offered employment by the Government of Ontario. The Canadian government is expected to invest more than $1 billion in next six years to improve the performance of the labor market program. This is to be achieved through implementation in gradual manner, initially based on the expansion and enhancement of the apprenticeship, the integration of the labor market so as to accommodate the recent immigrants, to…… [Read More]
(Southwest Airlines Corporation)
The employees are always put first at Southwest Airlines, and according to the CEO Herb Kelleher, who was responsible for founding the company Southwest Airlines, the philosophy that employees come first is deeply embedded in the psyche of the company, and if the employees of the company are happy and contented and fully satisfied with their work, then they will most definitely take better care of the customers of the company, and this is exactly what happens at Southwest Airlines. When the customers are happy at the treatment that they receive at Southwest Airlines, they, quite naturally keep coming back for more, and this in turn makes the shareholders extremely happy and satisfied. The employees at Southwest Airlines are some of the best and most highly paid employees of any airline, and in general, all the walls of the company are always filled with several pictures of…… [Read More]
Low Cost Airline in Thailand
The Study on Improvement of Low Cost Airline in Thailand
Geography of Thailand
Nature of Airlines
Variables under Study
The Profitability of Low Cost Airlines in Thailand
Operating esults, Selected Airlines, Financial Year 1999
The Economies of Scale Attained By Airline Industry
Human esource Practices
The future of low cost Thailand Airlines
Contrasting Qualities of State Owned and Non-State Owned Airlines
The Study on Improvement of Low Cost Airline in Thailand
Thailand is a global source for customers seeking cheap labor or material inputs. The country is rich in natural resources -- tin, rubber, natural gas, tungsten, and timber being a few examples. The country is a major source for agricultural products1a.
Thailand also has an abundant supply of low-skilled labor with high participation rates in the workforce 86% for males and 67% for females in 1995. At the same time, the country…… [Read More]
Bringing Quality Back to Commercial Air Travel
In 1988, ten years after deregulation of the aviation industry in the U.S., Gourdin's article titled "Bringing Quality Back to Commercial Air Travel" was published in the Transportation Journal. The article gives a good overview into the way that the aviation industry has developed following deregulation. The article focuses on quality issues, demonstrating the way in which interpretation and satisfaction of quality issues varies across the three main stakeholders; the carriers themselves, passengers, and the government (Gourdin, 1988). This is an interesting piece written by the author using their knowledge, therefore, when reviewing this article it should be noted that it is more of an opinion piece rather than a research article found in peer reviewed journals.
When examining the article, it maybe argued that although Gourdin obviously has a strong knowledge of the airline industry, and the way it operates, that…… [Read More]
" (p. 4) This is to make the argument that it should be seen as a practical reality of this new business atmosphere that responsibility to the social realities and standards of an operational setting will be directly predictive of long-term survival, stability, functionality and survival.
That stated, it should also be seen as incumbent upon the global alliances created by the process of free trade to impose standards of corporate social responsibility vis a vis labor standards, wage equality and environmental protections. By taking this step, the world community can help to ease the financial burden placed upon those companies which aspire to engage in the global economy without eschewing positive corporate values.
Kahler, M & Lake, DA 2001, 'Globalization and governance,' IGCC. ead online Aug. 9, 2010 < http://igcc.ucsd.edu/research/intl_political_economy/gandg.html>.
Lockwood, N 2004, 'Corporate Social esponsibility,' Society for Human
Smith, H 2004, 'Who calls the shots…… [Read More]
Because lending institutions stood to lose anytime borrowers defaulted on a loan, lenders always engaged in a very careful process of ensuring that loan applicants were capable of repaying any debts they sought to take on (Phillips, 2008).
Deregulation shortly before the turn of the century eliminated the self-interest basis of rejecting risky debtors, leaving only legal and ethical obligations to exercise due diligence in good faith (Phillips, 2008). Unfortunately, mortgage lenders throughout the nation began issuing loans irresponsibly and often without any collateral or interest due on the loan. Since they intended to sell off the obligation anyway, they had little concern for what might happen subsequently. Likewise, home realtors and mortgage brokers began aggressively soliciting business from customers unethically, often by exploiting their ignorance about variable-rate mortgage loans. Unfortunately, this process also triggered an artificial housing bubble based largely on inflated property value statements and those overvalued but…… [Read More]
Spatial tracking systems that make banks' floor plans and product positioning more effective;
5. Intelligent interactive displays that reflect the interests of the watcher;
6. Use of wireless tablet personal computers (PCs) for client interviewing; and,
7. Videoconference virtual experts for collaborative selling (56).
The same features that characterize high performance banks in their brick-and-mortar operations appear to relate to the use of technology as well, with the best performing banks having identified the optimum mix of services for the markets they serve. For instance, Grasing reports that, "Banks are taking a variety of approaches in implementing technology to make improvements in retail delivery. The methods differ, depending on the bank management's mindset toward the purpose of the software and its valued place in the new business or service delivery processes" (3). The main point in this area is that high performance banks apply technology in ways that help minimize…… [Read More]
Economists call this 'moral hazard,' where individuals have an incentive to behave recklessly because they know they will not be punished for their mistakes" (Interview, Der Spiegel, 2009).
The obvious response to such allegations is that the failure of Lehman Brothers which precipitated the collapse of the world's markets indicates what can transpire when something that people expected to be backed by a government is allowed to flounder. Lehman felt certain that the U.S. government would and could bail it out, just as it had similar companies in the past. Now the government is afraid NOT to extend aid to failing institutions, given what transpired post-Lehman.
So the cycle continues -- assurance of no need to suffer moral hazard results in a collapse of an industry (or government), the institution is shored up because it is too dangerous to let it fail, which results in the revivification of a dangerously…… [Read More]
However, even the Journal worries that there is no guarantee that the capital will be there for the next round of infusions for failing banks. t calls on the government to give private-equity firms more leeway in exerting control over a bank investment and changing the accounting rules for bank acquisitions, allowing the firm to write down the bank's losses down over time, rather than having to take them on immediately.
The article seems to be treating the symptom, not the problem. The solution is not to make it easier for private equity firms to take banks during a period of successive, serious and massive bank failures. nstead, the government must address the causes of why so many banks are failing, and discover how to prevent this in the future. Also, further deregulation in a situation that was caused by deregulation in the first place seems unwise. Deregulation cannot cure…… [Read More]
Business - Management
External Environment Analysis
Southwest Airlines is the nation's low fair, high customer satisfaction airline. It mainly serves short haul cities, offering single class air transportation, which aims for the business commuter as well as leisure travelers. The North American Industry Classification System (NAICS) classifies Southwest Airlines as Scheduled Passenger Air Transportation - 481111 (North American Industry Classification System, 2011).
When conducting an external analysis it is important to look at Porter's five forces to determine the competitive strength and therefore magnetism of a market. Porter's five forces comprise five forces from horizontal competition and vertical competition. These forces are: threat of substitute products, the threat of established rivals, and the threat of new entrants, the bargaining power of suppliers and the bargaining power of customers (Porter's Five Forces a Model for Industry Analysis, 2010).
The first threat is that of the threat of new entrants into the…… [Read More]
I writing a case analysis Charles Schwab. The essay I ordered helped tremendously. I continue order custom essay's semester guide writing case analysis. Thanks. Generally, detailed analysis a case study Charles Schwab includes areas
Charles Schwab: An Overview
Analyze the company's history, development, and growth
Charles Schwab is one of America's largest financial services firms. It has positioned itself in the financial services market as a firm for the 'average investor.' It was a pioneer of the no-transaction fee mutual fund, a financial instrument that became increasingly important for investors without a great deal of initial capital. Schwab opened up storefronts all over the nation, and was one of the first firms to use direct face-to-face contact with average, small-scale investors as a marketing technique. Its low fees and personal touch caused Schwab to experience stratospheric growth during the 1990s stock market boom, an era which saw a…… [Read More]
The combination of such broad language and the paucity of any significant enforcement tools meant that these initiatives were largely ineffective.
Not surprisingly, complaints from passengers increased by 200% within the year; furthermore, flight delays continued to increase 12% faster in the first five months of 2000 than in the same period in 1999. "Indeed, in the twelve months following the airlines' voluntary promises, flight delays cost business travelers 5 billion dollars and 1.5 million hours" (osenthal, 2002, p. 1859). The number of delays caused National Business Travel Association Executive Director Marianne McInerney to conclude that "[w]e are at a point where our nation's airline system is in need of triage" (osenthal, 2002, p. 1859). Some observers would suggest that radical surgery is required rather than triage, and these issues are discussed further below.
Security Issues and Passenger Satisfaction. When people travel on an airline, they have a legitimate right…… [Read More]
In this regard, Osorio adds that, "The strike put deregulation on hold, giving the airlines a respite from intense competition and more time to plan for the post-deregulation era" (2000, p. 114). The PATCO strike also severely hampered further governmental employee unionizing activities for decades (Osorio, 2000).
The research showed that in 1981, the Professional Air Traffic Controllers Organization engaged in an illegal strike for more money, better working conditions and updated equipment that violated Title VII of the Civil Service eform Act of 1978. Notwithstanding the legitimacy of the union's demands, the manner in which they pursued them was violative of the law of the land and the President of the United States took matters into his own hands as chief executive officer and fired the lot of them in response, replacing them with supervisors, military air traffic controllers and newly hired controllers. The PATCO strike also had…… [Read More]
Human esource in Aviation Industry
Human resources are a set of individuals who make the workforce of an economy. Human capital is a term related to human resources, but to a narrow scope, the term relates to knowledge and skills of a worker. Human resource represents people, Labor, Manpower or talent. Companies view employees as assets, whose actions and skills add value to the organizations. Firms need to practice effective human resource planning processes. For easy management of human resources in an organization, consideration on the demographics of employees, availability of workers, levels of skills of employees and on availability of funds to compensate workers is critical for easy management (Harzing & Pinnington, 2010).
According to Harzing and Pinnington (2010), one major concern about human resource in an organization is for the fact that employees are at time abused and in some cases traded. elating employees to commodities of production…… [Read More]
Resurrection of the American Dream
The American Dream is a concept that has been a part of American culture for many decades. The American Dream is a deeply held conviction that an individual can reach his or her fullest potential if they apply themselves appropriately. This concept is built on the idea that there are no limiting conditions that can keep someone from fulfilling their potential such as age, race, sex, disabilities, or other factors that are beyond an individual's control. The idea is centered on the concept that there exists the opportunity for social mobility that can be achieved through the application of one's efforts.
Through hard work and determination an American has the potential to improve their circumstances at all times. However, the vitality of the American Dream has been compromised in recent decades with many macroeconomic developments that have negatively impacted the economic opportunities for Americans. Furthermore,…… [Read More]
Issues and Key Issue
In my opinion, there are several issues, the most important ones having been emphasized at the end of the case study. First of all, the creation, with the Maastricht Treaty signed in 1992, of the common market in Europe, corroborated with the fact that Switzerland is not member of the EU, would be leading to the renegotiation of the Aviation Service Agreements (ASA) to which Swissair is part. Additionally, the common market would mean a much larger market than the Swiss: 350 million compared to 7 million and we may assume that the support from the European Commission and Council of Europe, coordinating bodies of the EU would have been much stronger.
A second issues that needed to worry Swissair is obviously related to deregulation, but not only on the European level, but globally. Global deregulation affects Swissair especially in terms of prices. Until…… [Read More]
Every country has a different level of financial development. The World Bank uses four measures of banking development: depth, access, efficiency and stability. An international banking conglomerate considering expansion will want to understand a country's local banking conditions in order to have the most informed view, to help with making the expansion decision. In this scenario, the countries being evaluated are the United States, Saudi Arabia, Brazil, India, South Africa, Iran, China and Turkey. This report will analyze the banking systems of each of these countries against the World Bank criteria.
Basic Economic Conditions
Before investigating the banking systems in each country, a brief overview will be provided of the prevailing economic conditions in each nation. The size of the economy, measured by GDP and by GDP per capita, is related to the market potential for a bank to enter the country. The more money there is a…… [Read More]
Enron Corporation was the American company that specialized in supplying of energy.
Prior to its collapse in 2001, Enron was one of the most admired companies in the United States recording superior profits year by year, however, in 2001, series of the Enron questionable financial transactions were finally made opened when the company's stock price collapsed within one day. This study investigates several factors that led to the fall of Enron Corporation, the outcome of the investigation reveals that the top management did not promote culture of ethics within the organization. The paper reveals that the management was intoxicated with power manipulating information to their benefits. Moreover, top officials used power ruthlessly intimidating the subordinated. The company did not promote the culture of checks and balances by allowing only one entity performing both the functions of internal and external auditing. The study recommends that integration of ethical business is an…… [Read More]
The Uruguay round would designate that the TO, through its primary role as a mediator, negotiator, and monitor of international trade policies and disputes, serves by design as a gatekeeper of international trade, offering the structural conditions and assembled authority to exact a legitimate level of authority over its member nations.
A good example of how the TO has strengthened the international governing community's ability to provide oversights for its member nations comes from the 1994 rounds of negotiation in Uruguay which essentially defined and forged the TO from the shadows of the GATT. In a consideration, for instance, of the newly afforded power to engage in the process of dispute settlement, we can see that the TO would have an expansive impact on the power of those who had already acted under the propositions of the GATT. The declaration produced by this round of talks would proceed by stating…… [Read More]
Beyond that, however, some lessons about organizational structure, values, and business models can also be gleaned from Lewis' work. Without a careful and purposeful control of operations to maintain their professionalism and ethicality, and without a strong indicator of ethical values and their importance at the top of an organization, the lower levels of the organization are all but certain to devolve into a chaos that brings out the lowest common denominators in human behavior.
As Lewis notes in a later rumination about his book, however, these lessons don't really appear to have been learned. The fact that CEOs at Wall Street investment firms still have massive (actually, far more massive) salary and benefits packages as did their 1980 counterparts while still failing to appreciate the risks that their investors are taking or the reasons (or lack of reason) that exist behind those risks has made Lewis' book "quaint" in…… [Read More]
These blackouts were orchestrated as away to drive up the prices of energy. Tapes of conversations were released to the public and the employee's are on tape mocking the people of California after they were at the root cause of the problem for consumers (Johnston, 2004).
Buchholtz, a. & Carroll, a, (2008) Business and Society, 7th ed. Cengage Learning
Harvard Law eview, (2003), the good, the bad, and their corporate codes of ethics:
Enron, Sarbanes-Oxley and the problems with legislating morality, the Harvard
Law eview Association, 116(7) 2123-2141
Johnston, L. (2004, June 2). Enron tapes anger lawmakers - CBS Evening News
etrieved November 15, 2010, from http://www.cbsnews.com/stories/2004/06/02/eveningnews/main620795.shtml
Sims, ., & Brinkmann (2003) Enron ethics (or culture matters more than codes), Journal of business ethics 45(3)
Thomas, W., (2002) the rise and fall of Enron: when a company looks to good to be true, it usually is. New York: andom…… [Read More]
By the turn of the century, though, these low-costs carriers had become profitable or at least had significantly reduced their losses due in large part to concomitant increases by major carriers that were increasing their prices in response to decreasing yields and higher energy prices (Doganis 2001).
By and large, passenger traffic across the board increased significantly prior to September 11, 2001 and all signs indicated it was continue to increase for the foreseeable future. For example, according to Janda, Flouris and Oum (2005), global air passenger traffic increased from 1.573 trillion revenue-passenger-kilometers (RPK) in 1985 to 3.394 trillion in 2000, representing a 116% increase during this decade-and-a-half period, or an average annual compounded growth of 5.26%. Furthermore, between 1985 and 2000, air freight traffic grew at even faster rate than passenger traffic (Janda et al. 2005). These authors also emphasize airlines are directly affected by the larger economy in…… [Read More]
The purpose of the take-or-pay clause is to allocate the respective risks of the production and sales of natural gas between buyers and sellers.
According to Gaille, "The seller bears the risk of production. To compensate seller for that risk, buyer agrees to take, or pay for if not taken, a minimum quantity of gas. The buyer bears the risk of market demand. The take-or-pay clause ensures that if the demand for gas goes down, seller will still receive the price for the contract quantity delivered each year."
Although there are other salient risks involved, the two main risks hedged against are the two described above.
188.8.131.52 Transfer of volume risk. According to Meyer, Myers, Kolbe, Leonard and Baker, "Take-or-pay contracts are often signed in transportation industries precisely to shift risk of revenue variances away from the suppliers who have sunk costs in the right-of-way to the suppliers of the…… [Read More]
190). The Act also helped to create a "too-big-to-fail" mindset (Walter, 2004) that would have profound implications during the economic downturn of 2008 and beyond.
Why did you include this piece of legislation in your list? The Act is described by Sammin (2004) as being "the biggest revision in financial services law since the Great Depression" (p. 653).
iegle-Neal Interstate Banking and Branching Efficiency Act of 1994
What were the problems/conditions giving rise to the legislation? apid consolidations among the nation's banks were creating the potential for diverting needed banking resources from communities (ose, 1997).
What were the major provisions of the Act? The iegle-Neal Interstate Banking and Branching Efficiency Act of 1994 (hereinafter "the Act") contained the following major provisions:
A. Bank holding companies that are adequately capitalized and managed can acquire a bank anywhere in the United States one year after this law is enacted.…… [Read More]
But this does not mean it is fair to ignore how many fragile emerging economies, such as Iceland, Ireland, and Greece, have been suffering far worse turmoil than either the U.S. Or Canada today. Regarding the worries about the 'jobless recovery,' Watson believes decreases in employment do not always presage more serious recessions later on.
There are profound differences between today and the 1930s. The difference seem to lie in the political climate: there was widespread support for Franklin Delano Roosevelt's instituting of government programs to help the unemployed and dispossessed. Today, an intransigent Republican minority faction in Congress is stymieing such efforts. Watson's sunny forecast does not provide any advice about how to prevent a similar crisis in the future, he simply advises the reader to watch and wait unemployment figures creep up: "IPA forecast sees the national unemployment rate rising to an average of 8.1% in 2009 --…… [Read More]
(2) Analyzing all accident data without regard to the type of airframe provides for an easy sampling and less potential bias toward fixed wing vs. rotary wing aircraft.
(3) Not including ground accidents into the research will allow the research to focus only on aviation accidents.
(4) Limiting the research to a four-year period; 2003 to 2006 will provide an adequate sampling of the data and not constrain the research results.
The first assumption is that accident data to be used will be an adequate sample of class a through class C accidents within the USAREUR area of operations.
The second assumption is that ARMS inspection dates derived from official USAREUR Publications and historical data files will reflect actual dates of ARMS inspections.
The third assumption is that current ARMS inspections continue to incorporate comprehensive checklist used to evaluate resource management and assist…… [Read More]
For the SunLife agents to be successful the accumulated experience and knowledge in the company need to be captured, and applied to the sales cycles and ongoing customer relationships. This is another major gap that is in the approach the company is taking with the implementation of Maestro today as well. SunLife is not taking into account the deep expertise and knowledge within the company to streamline and make more efficient the selling process, and as a result the resistance to change on the part of agents just increases over time. They fail to see the value of making any significant shift in how they view new technologies to help them sell more effectively or continually be trusted advisors over time.
SunLife has an exceptionally strong grasp of technologies and their contributions to each aspect of the insurance sales, account management and risk management aspects of the insurance industry. Several…… [Read More]
Enron could engage in their derivative trading strategy with no fear of government intervention because derivative trading was specifically exempted from government regulation. Due in part to a ruling by the Commodity Futures Trading Commission's (CFTC) chairwoman, Wendy Graham, derivatives remained free of regulatory oversight. Ms. Graham, wife of Texas senator Phil Graham, made this ruling 5 weeks before resigning as chairwoman of the CFTC and joining the Enron oard of Directors in 1993.
Derivative accounting is further complicated because there is no consistent way to fairly report their value and risk in a company's financial report. In 1998 Rule No. 133, "Accounting for Derivative Instruments and Hedging Activities" was developed by the Financial Accounting Standards oard (FAS), an independent agency that sets guidelines for corporate auditors. Rule 133 contains more than 800 pages, which further complicates its adoption and consistent interpretation by various companies. SFAS No. 133 was subsequently…… [Read More]