Air France-KLM as Low-Cost Airline Across Europe Essay Example for Free

Air France-KLM as Low-Cost Airline Across Europe Essay Abstract Airline is an important industrial in European economy, with the liberalization and deregulation of European market, it is filled by a number of small-sized and large-sized airlines, recently, the model of low cost carriers is widely spread from America to Europe, the success attracts rivals to adjust business models to enter this market. Air France-KLM also attempts to adopt this strategy. This essay will use PESTEL and stakeholder theory, as well as corporate social responsibility (CSR) concept to analyze general environment and specific environment including customers and suppliers. Main ideas are Air France-KLM (FK) should concern CSR behavior especially including social and environmental perspective to conduct low-cost strategy rather than only consider economic perspective which is short-term financial performance, because it could not bring a sustainable development for company. Furthermore, FK should have operational resilience and strategic resilience under the uncertainty of dynamic environment, and integrate CSR as a organization culture which will become a competitive advantage. The general environment analysis could provide reference for other companies, and analysis of stakeholder theory and CSR concept will give a guidance for sustainable development of companies. Air France-KLM is owned by French airline (Air France) and Dutch airline (KLM). It is the largest airline company in the world, while the profit is continually decreasing in Europe within recent 5 years (Market Line 2014). It is positively seeking a path to maintain competitive position in European airline market. Two largest competitors are Ryanair and EasyJet in Europe who operate low-cost strategy which learn from Southwest in US, and they rapidly capture market share. Air France-KLM is planning to use same strategy to compete with them. Environment is a significant indicator that influences the operation of business. It is dynamic and complex, different elements are interrelated and interacted that bring different influence for present and future activities  of companies. Analysis of environment usually is divided into macro-environment and micro-environment, they separately cover the general environment and specific related environmental factors such as customers, suppliers and regulators (Kew and Stredwick 2005). As Europe is located in a low valley suffering debtor crisis, new business model is encouraged to stimulate the economy and transfer risks for government. This essay will evaluate and discuss the low cost strategy Air France-KLM will adopt, firstly, it will analyze the general environment using PESTEL tool, and using Five Forces model and stakeholder theory further seek the issue and factors that can help company to succeed in a long term. Especially, it will explain the importance of corporate social responsibility in business operation. Finally, it is to find the opportunities and threats that company should notice for future success to combines different factors. Air France-KLM is holding by Air France and KLM which is a Dutch airline, the alliance was formed in 2004. The headquarter is located in Paris, and it obeys the French law. Subsequently, it became the largest airplane company in terms of revenues in Europe, even over the world. However, the operating profit to Air France-KLM (FK) continually decreased from 2012 (MarketLine 2014). Air France-KLM is exploring another strategy to survive in the competitive airline industrial. As BBC reported Alexandre who is CEO of FK claimed company will adopt the Low cost carriers (LCCs) strategy to recover and sustain competitive position in airline industry (Clark 2014). Environmental analysis is an inevitable step to help company identify issues, flexibly and innovatively solve problems, also assist the strategist to improve the decision making process (Kew and Stredwick 2005). The internal and external environment analysis will be required in order to explore fitness of strategy within the whole business environment and internal capabilities; in addition, the analysis on competitive structure of industrial environment and stakeholder will deeply explore the important factors for the sustainable development rather than short-term success, especially CSR concept includes social and environmental perspective instead  of simply economic perspective which presents financial profits (Button 2014). FK will better understand the opportunities and threats under the business environment analysis. The characteristics of Low cost carriers are presented on maximum utilization for facilities and economically provide service that customers themselves need. Usually, it has a high seating density, single class configuration, point-to-point services; it frequently uses second-tier airports on cost saving (CAPA 2014). It also keeps a low maintenance and training costs, as well as eases scheduling and takes advantage of bulk purchases to obtain discounts from manufactures (Budd et al 2014). It generates profits from ancillary revenue such as meal, snack and luggage (Budd et al 2014). This model started from America Southwest Airline in 1978. Nowadays, LCCs as a strategy is widely adopted in Latin America and Europe. The combining analysis between the environment and characteristics above will evaluate the low cost strategy of Air France-KLM. PESTEL as a macro-environment analysis tool helps to understand the complex trend of environment. PESTEL includes political, economic, sociological, technological, legal and environmental. The analysis concerns the longitudinal and cross-sectional changes in time line. Firstly, liberalization events in US market significantly impacted other countries (Fu and Oum, 2014). France has high liberalized operating environment that enable companies to flexibly run any legal business model, it provides environment that FK can practice low cost strategy instead of the whole service provided with high cost (Budd et al 2014). Liberated market will be an advantage for innovation of business and increase the market power of company. It is big opportunity that companies can expand their network, as FK is an alliance to share strengthen and risks between French and Dutch airplane company (Fu and Oum, 2014). However, high-degree liberalization inevitably bring fierce competition. Additionally, the business model of public-private partnership is dominating the European airlines (Cruz and Marques 2011), especially the privatization process of European airlines is salient, government decreased the stake for business,  as French government hold a 16% stake on FK (Stothard and Bryant 2014). As a result, company will obtain less financial support from government, government is able to bear less risk of deficit. Secondly, to considering economic factors, German and France as primary strength motivate the economic recovery of Europe, French government is gradually putting effort to diagnose economic ills (Barber 2014). European countries still have maintained the high unemployment rate since financial crisis occurred in 2008, although it slightly fell in 2014 compared to last year (Statista 2014). Inflation rate had a slight fall in November than that of October, it will be a danger for debtors due to less revenue from sales, incomes or taxes, and debt problems is serious; energy price is falling as well (BBC Nov 2014). The important social indicators is consumer behavior is gradually changing. The increasing number of customers choose the high-speed train for a short journey instead of the airplane as a result of the punctuality and similar price on same time consuming (Dobruszkes 2011). In addition, the strength of unions in this two countries is very high, labour union has strong power such as pilots or crews. The impact of technology is significant, as the big data time is coming (Mark 2014), companies own the large number of data information about consumer, which will rapidly push the innovation of business, if company can dig and utilize the meaning of data. For the most important environmental and legal analysis, climate change is as one of themes in previous G20 conference and future UN conference will hold in 2015, and it will concentrate on a new set of Sustainable Development goals and emphasize the multilateral co-operation on a range of vital issues (FT 2014), which implies France should contribute to same goal, and perhaps the more strict regulation will be adopted, for example, CO2 emission. Additionally, the terrorism is serious problem airplane companies is facing.  In macro-environment, five forces model can identify and analyze the  competitive structure of industrial environment. Forces in relation to stakeholders can be discussed upon priority. The opportunities and threats will be identified further. Firstly, the intensity of rivalry is high, the large number of competitors in Europe is divided into two strategic streams, one is the large-size airplane such as Lufthansa and British Airway which are seeking path to compete in Europe; other representative group is LCCs including Ryanair and EasyJet. Various business models are emerging under the motivation of liberalized market conditions and globalization, airline companies could seek partner including other airlines companies and airports to form network for enhancing market power; additionally, each European country can operate and switch route freely (Fu and Oum, 2014). In contrast, LCCs provide service for customers who have high elasticity for price, it rapidly captured the market share as a result of low switching costs for buyers. To considering new entrants, 77% small-size companies failed which learn from LCCs to enter market, because the established companies with strong reputation and first mover advantages, and their size do not enable them to create the economies of scale (Budd et al 2014). Stakeholder theory claims companies should notice the interests of other groups, not only do companies focus on the interests of shareholder which is financial performance (Jensen 2001). Customer have highest power and interests for company, company usually prioritize them into first post; employees second, managers third, and shareholders last, according to the hierarchy of interests (Kew and Stredwick 2005). Customers have the most power and the highest interests to organization. From production side and demand side of economic perspective, as the analysis of business environment above shows the supply is over than demand, the number of fragmented airlines is more than customers (Budd et al 2014), so that the bargaining power of buyers is powerful, also switching cost is low between airlines. Low-cost strategy of FK is not lucrative in a market with high intensity of rivalry. However, business environment is along uncertainty and dynamics, the growth of Euro area will enable companies to earn the financial obtains as economic perspective. In fact, demand-supply economic perspective is narrow, the increasing demand of LCCs will lead to tragedy of the common for suppliers, because suppliers only consider the economic returns compared to inputs, and plunge themselves into price battle ignoring value creation, the more followers will emerge, obtained profits from one unit of input will be gradually decreased with the increasing rivals, and tragedy probably occur. So only economic perspective can not achieve success. CSR thoughts will benefits the long-term development of companies. It takes account of social and environmental perspective for a sustainable success, maximizing social welfare is an important measure under social perspective, and industrial success is based on sustainable development (Button 2014). Resources is limited in the world, when managers make decisions, they should consider to increase the long-run value for firm rather than a short-run financial performance including equity, debt and stock. Ryanair cancel safety cards stuck on the back of the seats, the legal proceeding is debatable. It requires trade off through time, also among different constitutions. When companies give up present cost of a unit for receiving that at some time in the future. As costs of input come from different resources including labour, capital or material purchased. The company with CSR can attract and retain talents and establish the brand image and reputation for companies. The power of suppliers as one force represents inputs, simultaneously, they consist of important stakeholders including suppliers, employees, aircraft manufactures and fuel as well as airports. Firstly, employee as the most important internal stakeholder has high bargaining power within industrial. It is reported from BBC, the pilots of FK struck due to the reduction of their salary when low cost strategy adopted (Stothard and Bryant 2014). As above mentioned, company should not save cost from input to create short term profit, it impaired the interests of employees, employees will bring less output; on the contrary, if company can give them more care and welfare, they will create more value, such as  company can provide training and individual deportment planning to maintain enough talent pool for future development, employee also will return to company through high qual ity of services and improve the satisfaction of customers. Setting an adverse example, Foxconn as a large manufacturer adopted military management to employees and ignored their normal needs for reducing cost, as a result, employee suicide and reputation of company was impaired, likewise talents are not willing to work here under abnormal management. CSR could be employee and employer relationship, while Legal utilization for employee is only the lowest level of CSR, Low cost strategy with CSR should not only obey legal behavior, but also pursue ethical, economic and philanthropic behavior (Carroll 1991). Aircraft manufacture is another stakeholder group, low cost strategy may squeeze their price and change manufacture process, as FK wants to reduce the weight of seats and increase the intensity of seat. They should â€Å"co-production† with them rather than simply ask them to achieve requirement, otherwise, suppliers will be reluctant to change manufacturing process for FK only. For instance, IKEA uses flat-package for products from manufacturing to selling as core competitive advantage, it desires suppliers of China to satisfy the flat-package manufacturing process, it not only help to upgrade production technology, but also provide training programme for employee (Inge and Claes 2011). IKEA maintains the good relationship with suppliers. These ethical and economic CSR behavior will increase the wealth of stakeholders, simultaneously, it improves itself production efficiency in value chain. For philanthropic behavior as the highest level, company donates to communities for local better development. Company can collaborate employees to contribute this, such as employee regularly participate volunteering activities for 20 hours each year. Also, as environmental and legal analysis above, CSR perspective can stimulate the innovation and initiative of company. For low-cost strategy, FK can try to innovate new technology or operational methods, such as the use of biofuels and the improvement of CO2 emission disposing. The last force is the threat of substitute, the prevalence of high speed rail as substitute has advantages for a short route. Especially, for business  group, they can use telecommunications on high speed train, and company also spend less on business trip. So the business passengers is decreasing. The noisy and pollution are comparative less than airplane. As German Airplane adopts corporate with high speed rail to compete with LCCs. Based on analysis above, Air France-KLM (FK) adopt low cost strategy, the opportunities and threats can be identified. Liberalized market environment and rapid privatization process provide a favourable condition for development of new model, while they also achieve a high competitive market. It represents other large-sized company also can adopt this model to enter the market. Also, existed competitors with first mover advantages and rich experience, and high speed train as substitutes whose advantages are salient gradually capture the market share for a short-route trip. The pressure of legal environment on CO2 emission and labour union is heavy for operation of FK on low cost strategy. Compared to Ryanair, it ignored the CSR behaviour no matter what level about legal, ethical and philanthropic behaviour. It will be a path for long-term sustainable development for FK. CSR more concern social and environmental value that FK could create, it as a large airline company will explore and represent a new and correct path bearing CSR rather than the short development for financial performance, because it will cause tragedy of the common for the whole society, it will more take account of the interests of stakeholders. In detail, it can use biofuel and decrease the CO2 emission, also maintain good relationship with customers and employee, as well as suppliers. Catching the development of technology, FK should utilize the big data to dig needs of customers to innovate the business model. Under the turbulence of terrorism, European countries can corporate together to resist it for the whole society. French domestic CSR policy as a national competitive advantage will support this business model of FK (France Diplomatie 2014), as investment in CSR while it is difficult to receive profit in short-term, so perhaps FK could reduce the short-term financial pressure from support of government. So the policy of government is consistent with corporate strategy will be helpful. A differentiated low-cost strategy could be adopted by FK. CSR can be a culture of company as a competitive advantage to position itself in market, so that it will always stimulate the innovation and learning of organization, and maintain effective human resources management such as attracting and retaining talents. Organization should consider the knowledge management through technology to advocate CSR concept to every internal and external stakeholders in order to better achieve CSR activities. In addition, FK as one of large-size companies, it has enough experience and strengths to compete with other LCCs, even though they have first mover advantages in terms of reputation and economics of scale. On the other hand, as a large-size company has solid organizational institution and vested interested group so that the strategy change of organization is not easy. As the growth of Euro area with uncertainty lead to bigger risk FK will face (Cadman and Giles 2014), it indicates FK should concern the operational resilience and strategic resilience, once it suffers the unexpected adversity. In conclusion, under the analysis of complex and dynamic environment, Air France-KLM should adopt a differentiated low cost strategy. The economic and political market environment with high-degree liberalization and privatization will provide conditions for the development of business model, also increase the market competition due to a large number of rivals emerging under deregulation. Ryanair and EasyJet with first mover advantages have captured the large market share, also they have accumulated more experience, but the weakness of rivals and trend of environment such as regulation on CO2 emission and sustainable development indicate FK should bear responsibility to seek another path, which more concern the interests of stakeholders, CSR behaviour and activities to create long-term value such as the use of biofuel. At the same time, FK can integrate CSR as a culture, also a competitive advantage in order to continually motivate itself to innovation and learning, also improve the effectiveness of human resources management. The development of technology will require FK to utilize data to dig needs of  customers to innovate the business model in big data time. European countries also need to corporate together to resist it for common society under the turbulence of terrorism. Uncertainty of environment also require company have operational resilience and strategic resilience, once it suffers the unexpected adversity. References: Air France-KLM S.A. company profile, (2014) Market Line [Online] Available from: http://0-eds.b.ebscohost.com.pugwash.lib.warwick.ac.uk/eds/pdfviewer/pdfviewer?sid=172f9c2f-747f-4b99-9c37-34a375aa6a06%40sessionmgr110vid=1hid=114 [Accessed: 15 Dec 2014] BBC 2014 Eurozone inflation rate falls to 0.3% BBC 28.Nov. 2014 [Online] Available from http://www.bbc.co.uk/news/business-30243113 [Accessed: 15 Dec 2014] Barber, T., (2014) France shows courage in diagnosing its economic ills, FT, 22,Dec, 2014 [Online] Available from: http://www.ft.com/cms/s/0/a364d628-86cd-11e4-8a51-00144feabdc0.html?siteedition=uk#axzz3Nmt1hzwF [Accessed: 15 Dec 2014] Button, K., (2012) Low-cost airlines: a failed business model? Transportation Journal, Vol, 5. No.2, pp197-219 [Online] Available from: http://0-muse.jhu.edu.pugwash.lib.warwick.ac.uk/journals/transportation_journal/v051/51.2.button.html [Accessed: 15 Dec 2014] Budd et al (2014) Grounded: Characterising the market exit of European low cost airlines Journal of Air Transport Management Vol, 34, pp78-85 [Online] Available from:http://0-www.sciencedirect.com.pugwash.lib.warwick.ac.uk/science/article/pii/S0969699713001129 [Accessed: 15 Dec 2014] CAPA 2014 [Online] Available from: http://centreforaviation.com/profiles/hot-issues/low-cost-carriers-lccs [Accessed: 15 Dec 2014] Cruz. C.O., and Marques. R.C., (2011) Contribution to the study of PPP arrangements in airport development, management and operation. Transport policy Vol.18 pp392-400 [Online] Available from http://0-www.sciencedirect.com.pugwash.lib.warwick.ac.uk/science/article/pii/S0967070X10001460 [Accessed: 15 Dec 2014] Carroll, A., (1991) The Pyramid of Corporate Social Responsibility. Business Horizons, 42: 39-48 Kew. J. and Stredwick J. (2005) Business environment: managing in a strategic context. London: The Cromwell Press Clark. N 2014 Air France-KLM Restructuring Puts New Focus on Its Low-Cost Airline The New York Times 11. Sept. 2014 [Online] Available from http://www.nytimes.com/2014/09/12/business/international/air-france-klm-restructuring-puts-new-focus-on-its-low-cost-airline.html?_r=1 [Accessed: 15 Dec 2014] Dobruszkes F. (2011) high-speed rail and air transport competition in western Europe: a supply-oriented perspective. Transport policy Vol.18 pp.870-879 Fu. X.W., Oum, T.H., 2014 Air Transport Liberalization and its Effects on Airline Competition and Traffic Growth – An Overview In The Economics of International Airline Transport. Vol, 4 pp11-44 [Online] Available from http://dx.doi.org/10.1108/S2212-160920140000004000 [Accessed: 15 Dec 2014] France Diplomatie 2014 [Online] Available from http://www.diplomatie.gouv.fr/en/french-foreign-policy-1/economic-diplomacy/corporate-social-responsibility/france-s-domestic-csr-policy/ [Accessed: 15 Dec 2014] Inge, I and Claes, G.A., 2011 Upgrading in global value-chains: a case study of technology-learning among IKEA-suppliers in China and Southeast Asia Journal of Economic Geography 11 (2011) pp. 731–752 Jensen. M.C., (2001) Value maximization, stakeholder theory, and the corporate objective function European financial management Vol.7 No.3 pp297-317 [Online] Available from

Business Plan For Entering Chinese Beer Market Marketing Essay

Business Plan For Entering Chinese Beer Market Marketing Essay The Chinese beer market has grown at a strong rate between 2004 and 2008. It has generated total revenues of $ 42.8 billion in 2008, representing a compound annual growth rate (CAGR) of 12% for the period spanning 2004-2008. Market consumption volumes increased with a CAGR of 9.2% for the period 2004- 2008, to reach a total of 38.8 billion liters in 2008. The markets volume is expected to rise to 53.6 billion liters by the end of 2013, representing a CAGR of 6.7% for the 2008-2013 period. Standard lager sales proved the most lucrative for the Chinese beer market in 2008, generating total revenues of $34.7 billion, equivalent to 81.2% of the markets overall value. In comparison, sales of premium lager generated revenues of $7.7 billion in 2008, equating to 18% of the markets aggregate revenues. The performance of the market is forecast to decelerate, with an anticipated CAGR of 9.4% for the five-year period 2008-2013, which is expected to lead the market to a value of $67 billion by the end of 2013.  [1]   Market Value The Chinese beer market grew by 14.9% in 2008 to reach a value of $42.8 billion. Market Value Forecast In 2013, the Chinese beer market is forecast to have a value of $67 billion, an increase of 56.7% since 2008. Market Volume The Chinese beer market grew by 12.5% in 2008 to reach a volume of 38.8 billion liters. Market Volume Forecast In 2013, the Chinese beer market is forecast to have a volume of 53.6 billion liters, an increase of 38.4% since 2008. Market Segmentation I Standard lager sales dominated the Chinese beer market, generating 81.2% of the markets overall revenues. Market Segmentation II China accounts for 42.9% of the Asia-Pacific beer markets value. Market Share Anheuser-Busch InBev accounts for 24% share of the Chinese beer markets volume. ( www.euromonitor.com) Distribution Supermarkets and hypermarkets distribute 35.7% of the Chinese beer markets volume. 1.2 Situation of Chinese beer industry The Chinese beer market has grown at an astounding pace in recent years, spurred on by the massive levels of foreign investment in the market, along with the rise in the average levels of consumer spending in China, thanks to the economic reform policies of the government. China has now overtaken the US to become the largest national beer market in the world. However, per capita beer consumption in China remains very low relatively meaning that there remains great scope for development.  [2]   In 2013, the Chinese beer market is forecast to have a volume of 53.6 billion liters, an increase of 38.4% since 2008. The compound annual growth rate of the market volume in the period 2008-2013 is predicted to be 6.7%.  [3]   Table 1 Source: Datamonitor 2. The strategic triangle ( the 3Cs ) 2.1 The Corporation Aire Valley Breweries is a medium-scale brewery that is located in UK, it is an effective company with high cost structure but it sells its premium bottled product at premium prices so it is not a real problem. Its current production includes: Hostenbeck. European style lager beer, 5% abv, in 260 ml glass bottles San Bernardo. European style lager beer, 5.5% abv, in 240 ml glass bottles Camelot. British style dark bitter beer, 4.5% abv, in 500 ml glass bottles Ark Royal. British style dark bitter beer, 5.6% abv, in 500 ml glass bottles Pot of Gold. Irish style dark stout beer, 5.2% ABV, IN 500 ml glass bottles 2.2 The Customer Aire Valley Breweries plc intends to provide the customer with more than just a traditional brew. We intend to distribuite a high quality brew that will not only be refreshing and pleasurable, but also encourage gatherings and sharing of fun. Our customers can be feel safe about the highest quality standards of all our products. Looking at the consumer, there are some differences between the ways different alcoholic beverages are used in different occasions, but many product choice are a matter of personal taste this makes beer vulnerable to the threat of other alcoholic beverages and many people are about the idea that wine can be more healthy. Overall, there is a moderate threat from other type of alchoolic beverages. Our target customer will be people of any ages and gender but our products are more suitable for over 20 years men and women. 2.3 The Competitors We should identify competition in terms of companies already operating in the Chinese market that product similar type of beers. Hence there will be a need to strongly differentiate ouselves from other already well-settled businesses. However after an accurate market analysis, our competition comes in several forms: 1. The biggest competitors are Anheuser-Busch InBev NV/SA, Tsingtao Brewery, Company Ltd., SABMiller Plc. Been present on the market for a long period, they have a wide and established distribution network that they utilize to their advantage. In order to compete with these leading companies we intend to strongly undertake new channel and distribution development in addition to adopting aggressive marketing strategies. 2. Other manufacturers of traditional brews including homes and local bars will also constitute our competitors. They often have access to the local and remote areas and knowledge of these areas. However their products are not of high standard, which we shall fully exploit. Anheuser-Busch InBev accounts for 24% share of the Chinese beer markets volume. In comparison, SABMiller accounts for 15.9% of the total markets volume.  [4]   Table 2 Source: Datamonitor 3. The market segmentation of the Chinese beer industry The Chinese beer market is fragmented, with top three players holding 53.6% of the total market by volume. The market leaders are companies that own a strong well-known brand-image and operate within various segments of the market, which is possible due to the ease of increase in production capacity once a company is established and has already gained customers loyalty. There is a waste differentiation of products in the market, as there are many varieties within the beer category, including: ales, stouts, low/no alcohol, standard and premium lager, and specialty beer. Entry into this market would be highly dependent on the growth prospects and also on the size of the existing players. Furthermore, beer can be vulnerable to the threat from substitutes such as spirits and wine, due to low switching costs and consumption patterns in different geographies. 3.1 Geographic There are difference between Northerners and Southerners. There are large numbers of beer consumers chose to drink at dinning and banquet in the 6 selected metropolitan consumer markets; namely Beijing, Shanghai, Shenyang, Chengdu, Wuhan and Guangzhou. A comparably distinct preference for drink-places was identified as frequenting at bar counters in Guangzhou (15.7%).  [5]   Table 3 Source: IMI Consumer Behavioural Lifestyle Yearbook 2002-2003 3.2 Demographic In China, women population consume more beer beverage than men, almost 40% of consumers in Beijing are women. Table 4 Source: IMI Consumer Behavioural Lifestyle Yearbook 2002-2003 3.3 Psychographic Supermarket chains are often able to negotiate very strongly on price with beer producers, which fact boosts buyer power significantly. Switching costs for buyers are not particularly high, which increases buyer power in all markets. Beer producers can differentiate their products quite strongly, not only by the overall segment (lager or bitter, for example) but also by brand, ingredients, style, and so on.  [6]   3.4 Behavioural The IMI survey classifies beer beverage consumers into heavy and non-heavy drinkers. Heavy consumers drink habit ranges from daily drinking to a minimum of once or twice a week. Beijing beer beverage consumers are mostly heavy drinkers (67%). In Guangzhou, the heavy and non-heavy consumers are equally distributed in numbers. Table 5 Source: IMI Consumer Behavioural Lifestyle Yearbook 2002-2003 About 30% of the Beijing heavy drinkers are women, as compared to the other two metropolitan consumer markets in less than 20%. All the women consumer in the three selected metropolitan markets behave differently, ranging from frequency in drinking, preference for drinking-places, brand images, and personal lifestyles.  [7]   Table 6 Source: IMI Consumer Behavioural Lifestyle Yearbook 2002-2003 4. The 4Ps Marketing Mix 4.1 Product Aire Valley Brewwerie plc should produces products of high quality and impeccable taste. Our products will be positioned very carefully. They will be of extremely high quality to ensure customer satisfaction, supported by impeccable service to our customers. As high quality beers can be sold at premium prices, it is now possible to enter the market on a small scale as a microbrewery. Investment in production equipment can be recouped by adding a good margin to the price of the end-product. Standard lager sales dominated the Chinese beer market, generating 81.2% of the markets overall revenues. Sales of premium lager generated 18% of the markets aggregate revenues.(Datamonitor)  [8]   Table 7 Source: Datamonitor 4.2 Pricing We will ensure that our products prices take into consideration peoples budgets. However these prices will also take into consideration the cost of production and distribution 4.3 Distribution These products will be extensively distributed to remote,  yet extremely viable areas where the market is appreciative of readily available, good quality brew. We intend to establish an brilliant network that will enable us to rapidly respond to customers orders, and be available in remote areas our competitor has not yet exploited. 4.4 Promotion The marketing strategy we will adopt will convey the sense of quality and satisfaction in every picture, every promotion, and every publication. The promotion will involve integrating advertising, events, personal selling, public relations and direct marketing. In the long term Internet marketing will also be undertaken, which will help to increase the knowledge of our products to the various market target segments. Web presence is a natural objective in reaching the appropriate potential customers. Well-done brochures, company profiles and business cards often has an attraction effect on clients contemplating on ordering our products. Hence this will undoubtedly generate increased sales of our products. 5. SWOT Analysis In a rapidly growing economy market as the Chinese one we should focus on our strenghts to respond quickly to what the market dictates and to provide quality brew in such a highly lucrative market. We should also acknowledge our weakness of a medium-sized company without any international experience. 5.1 Strenghts Market segmentation strategies Focused marketing campaign Established company in UK with strong capital base Different type of products for different tastes 5.2 Weaknesses Lack of reputation in the Chinese market No knowledge about Chinese culture and behaviour Chinese distribution channel different from UK one Introduction of Chinese empà ²yees who have not previously worked in the company present a challenge to the company. 5.3 Opportunities The new generation are more interested in foreign brand and attractive packaging Internet marketing and sales Chinese beer market had a huge demand in the last years followed by population growth 5.4 Threats Existing competition in Chinese beer market Marketing strategies and tactics by other established European companies 6. Conclusion The brewing industry has been one of those quickest to modernise in China. Despite its huge market size, there remains great scope for development, and many new opportunities are still available in China. Per capita beer consumption in China has grown to near parity with other regional market, and so development in the market will in future rely much more on raising the average value of purchases, and persuading Chinese consumers to trade-up to premium products and brands.

Objection, On The Grounds of My Fist! Essay -- Comics, Abdul Rafi Ono

Passing the bar is more than a feather in one’s mortarboard – it is a testament to perseverance, ambition, and four years of nosebleeds. This is why for us law students, lawyers are extraordinary. Generalist lawyers in the past, those experts of every field of law, are regarded even more so. But recently, in a speech for UP Law’s 100th Anniversay, Sen. Edgardo J. Angara said that the age of these supermen-lawyers is over – the age of the specialists has come. The trend in Philippine legal profession is towards specialization, fueled by skepticism towards generalists, in our version of â€Å"kiu ĉasas du leporojn, kaptas neniun.† Who chases two jackrabbits catches none. But in comic books, the age of superhero lawyers is hardly over. After all, they started everything. Lawyers in capes and tights have always been present in the medium of comics since its inception. The concept would germinate and persist through the years. The following are only a few of the lawyers who put on capes, wish for luck, and kick some criminal derrià ¨res. The Clock Contrary to popular belief, the first masked superhero is not Superman - it is The Clock. Before he became a vigilante, former District Attorney Brian O’Brien believed in the courts, until it failed him. His decision to become a vigilante was sparked by a frustration with the court system, the flaws of which let criminals operate with impunity. His motivations would be explored by several comic book writers over the years, through several other superheroes, spanning all seven decades of comic book history. The Clock’s disguise was a three-piece suit, and he had a calling card that said, â€Å"The Clock Has Struck.† When DC Comics acquired the rights to the character in 1956, it let the character of... ...ng, superhuman lawyers are an indication of the masses’ admission that the legal system is the high-road, and vigilantism is the entertaining road, albeit the road that should not be taken. It is a confirmation by the people of that heroism is just one of the characteristics that define a member of the bar, literal ass-kicking not included. Works Cited Yap, D.J. "Senator Angara: ‘Superman-lawyer’ doesn’t fly anymore." Inquirer News. 5 Feb. 2012. Web. 21 Feb. 2012. Hilyerd, William A. "Hi Superman, I'm a Lawyer: A Guide to Attorneys (And Other Legal Professionals) Portrayed in American Comic Books: 1910-2007." Widener Law Review 15.1 (2009): 159-195. Web. 15 Dec. 2011. Hilyerd’s research is the most helpful and exhaustive review on the topic, providing over 300 notes.

Carters loss of popularity Essay -- American History, Politics

The 1970's was a difficult time period in American history filled with chaos, domestic and international crises, and very poor presidential leadership. Richard Nixon was president during the early years of the seventies and he was far from popular in the eyes of the American people. With inflation rapidly rising, Nixon soon became unfavorable, and with the controversy surrounding his actions concerning the Watergate Crisis, he was impeached and forced to resign. His Vice President, Gerald R. Ford, soon took his place in the White House. However, Ford was unable to handle the crippling events taking place in the United States; his approval dropped drastically within months, and like Nixon he lost support of the American people. When the 1976 presidential election came around, the American people needed a new hero whom they could trust and who could pull the nation out of its current state of misery. To fill this position, American chose to elect James Earl Carter, Jr., Governor from G eorgia. Jimmy Carter began his presidency in the bright glow of public support built on his promise of bringing honesty and morality back to politics; but unable to successfully deal with conflicts beyond his control concerning domestic and foreign affairs, his term as President ended behind a dark cloud of public disapproval. Jimmy Carter entered the White House in 1977 with the bright glow of public support from the American people, stemming from his outspoken and admiring charisma. He was seen as the hero who could bring the nation out of disparity and restore it back to its golden years. He guaranteed that his government "would be filled with love as are the American People" (qtd. in Slavin 58). Carter characterized himself as honest and aggressi... ... in their once loved hero. They no longer saw him as the man who could cure the country's problems and restore the nation back to its golden years. In the 1980 presidential election, Carter faced even more trouble when the Democratic party became divided. Senator Ted Kennedy, member of the Democratic liberal wing, stole much of the democratic support away from Carter; although Jimmy won the Democratic primary, he had lost much needed democratic support and faced a major disadvantage heading into the election ("Election of 1980" 1). Not surprisingly, the dissatisfied voters did not reelect him for a second term, and many openly expressed their dissatisfaction with his handling of domestic and foreign affairs ("Outline of American History" 3). Ronald Reagan won the election, and Carter was forced to head back to Georgia behind a dark cloud of public disapproval.

The Importance of Group Work in Education Essay example -- Group Work

The Importance of Group Work in Education When I was in high school, and one of my teachers would ask us to form groups in order to do something, I would usually roll my eyes. Ironically enough, some of the best work that I put forth and learned from was done in a group work setting. By working with my peers towards a common end, I got things done much quicker and thorough than I ever did on my own. I chose to research group work for this essay, because in my limited experience as a teacher, youth worker, and student, group work proves to be a most effective teaching method; when it is done successfully. To begin, I came up with four questions to ask myself in researching this project: Why is implementing group work such a useful teaching method? How does it best foster critical literacy? How can it work to begin to dissolve the traditional labels of student stereotypes? How does group work best benefit the inclusion path: incorporating both gifted and special needs students? I have only been able to better understand the answers to these questions in the light of my limited experience, student talk, and professional writings. I do plan on being able to establish more of a concrete application of my philosophy within this short intern experience. My philosophy of group work reflects my philosophy on classroom culture. I see the best classroom environment as one that is non-hostile towards the student; doing whatever it can to clarify and to understand their ideas and problems. In a setting such as this, the student will develop a certain autonomy in discovering their own learning styles, as well as in evaluating their own work. à ¬Students who are authors in the English classroom are more than the writer of... ...esponse to Literature.à ® English Journal. 84:6 (October). Christensen, Linda. 1994. à ¬Building Community from Choas.à ® Rethinking Our Classrooms. Rethinking Schools, Ltd.;Milwaukee, 1994. Evans, Karen S. 1996. à ¬TheRole of Positioning in Peer à ±Led Literature Discussions. Language Arts. 73:3. (March). Hillebrand, Ramana P. 1994. à ¬Contol and Cohesion: Collaborative Learning and Writing. English Journal. 84:1. (January) Knudson, Ruth E. 1995. à ¬A study of Teachers, Tracking, and Grouping: An Examination ofPactice.à ® English Journal. 84:1 (January) Kutz, Eeanor and Hephzibah Roskelly. An Unquiet Pedagogy. Boyton/Cook Publishes; NH, 1991. Levin, James and James Nolan. Principles of Classroom Management. Allyn and Bacon; 1996. Mayher, John S. Uncommon Sense. Boyton/Cook Publishers; NH, 1990. Steinberg, Laurence. Adolescence. McGraw Hill, INC.: NY, 1996.

Defining Moments in Canada Essay

Defining Moments in Canadian History During the 20th century, there were many events and situations that helped define the country of Canada. There were positive moments, but also a good amount of negative ones. Of course, the successful events kept Canadians in a positive light, but the negative situations helped Canada learn from its mistakes and went to prove how strong and brave its citizens were/are. The three most defining moments would have to be the Dieppe Raid, the Invasion of Normandy, and the Battle of Vimy Ridge. These three events not only assisted the country to become what it has today, but has also defined what the nation has become. The first defining moment of the 20th century was the Battle of Vimy Ridge. This particular battle was a military engagement located in the Nord-Pas-de-Calais region of France during World War I. The main fighters were Canadian Corps against the German army. The battle took place from April 9 to 12, 1917. This was the beginning stage for the Battle of Arras, led by the British. â€Å"The Canadian Corps was ordered to seize Vimy Ridge in April 1917. Situated in northern France, the heavily-fortified seven-kilometre ridge held a commanding view over the Allied lines. The Canadians would be assaulting over an open graveyard since previous French attacks had failed with over 100,000 casualties. â€Å"(Cook) Main objectives were to take control over German-held high ground along an extensive escarpment. Doing so would allow the southern flank to advance without having to be heavily worried about enemy fire. With support from a nearby barrage, Canadians were able to capture most of the ridge within the first day of attack. The town of Thelus fell the second day, as did the crest of the ridge. The final objective was to capture another ridge located outside the town of Givenchy-en-Gohelle, which fell to the Canadian Corps on April 12. After that incident, the German forces had no choice but to retreat. This quick battle was successful due to a mix of tactical and technical innovation, powerful artillery support, extensive training, and thought-out planning. This event is a defining moment for Canada because it was the first time that all four sectors of the Canadian Expeditionary Force participated in a battle as a whole, therefore becoming a Canadian Nationalistic symbol of sacrifice and great achievement. â€Å"The Canadian success at Vimy demonstrated that no position was invulnerable to a meticulously planned and conducted assault. This success had a profound effect on Allied planning. Though the victory at Vimy came swiftly, it did not come without cost. There were 3,598 dead out of 10,602 Canadian casualties. After Vimy, the Canadian Corps went from one success to another, to be crowned by their achievements in the 1918 â€Å"advance to victory†. This record won for Canada a separate signature on the Versailles Peace Treaty ending the War.†(Battle of Vimy Ridge) The second definitive moment of the 20th century was the Dieppe Raid. This event was a World War II attack on the German occupied port of Dieppe on August 19,1942. The raid took place on the northern coast of France, and began around 5 am. Allied commanders were forced to call a retreat, a mere 6 hours later. Objectives included seizing and holding a major port to prove that it was possible and also to gather information. Allies also planned on destroying coastal defences, port structures, and all strategic buildings. The allied countries knew that they would eventually have to attack, so they figured they needed the practice. Another goal was to take some of Hitler’s attention off of trying to invade Russia. The plan was to use 5000 Canadians and have a 1-day attack and retreat on the Nazi-held coastal town of Dieppe. The plan was also to be secretive and attack at dark. None of these objectives were met. â€Å"The Soviet Union was pressuring the Allies to open a second front in Western Europe. The Allies, however, needed to build up their military resources before undertaking a full campaign. They felt that a large raid on the coast of France could force the Germans to divert more of their military resources away from the Soviet Union and also help in the planning for the full-scale assault to come. â€Å"(Canada Remembers) The first mistake was that they reached Dieppe in broad daylight, making this â€Å"surprise attack† not very surprising. Also, the Dieppe forces became on high alert at Dieppe because French agents warned them that the British were showing a great deal of interest in the area. When the Allied forces arrived at the port city, its flanking cliffs were well defended. Thesoldiers were met with very heavy machine gun fire from little stations dug into overlooking cliffs. The Allied fire support was not nearly adequate enough and the attackers were basically trapped on the beach by series of obstacles and never-ending German fire. After less than 6 hours, the Allies were forced to surrender and many of the soldiers were stranded on the port, to be k illed or to be taken prisoner by the Germans. The Allied forces were beaten severely, they definitely lost this battle, and they lost it hard. Numerous tactical and technical errors were made, resulting in huge amounts of Canadian deaths. â€Å"The raid was a disaster: More than 900 Canadian soldiers were killed, and thousands more were wounded and taken prisoner. Despite the bloodshed, the raid provided valuable lessons for subsequent Allied amphibious assaults on Africa, Italy and Normandy. â€Å"(Herd) This was, after all, one of the first attempts by the Allies on a German-held port. This was an important, defining moment for Canadians because the lessons learned there became the guidelines of what not to do in regards to future endeavours, and influenced preparations for the highly successful Normandy landings. The last definitive moment of the 20th century was the Invasion of Normandy (D-Day) on June 6, 1944. The Allies attacked the German-held beaches of Normandy, France towards the end of World War II. The landings were done in two phases; the first was an airborne assault landing consisting of 24 000 British, US, and Canadian soldiers shortly after midnight. The second was an amphibious landing around 6:30 am of Allied infantry. This attack was executed by all elements: land, sea, and air. The invasion required transportation of soldiers, and materials from England by aircraft and ships. These particular landings took place on an 20 km stretch of the Normandy coast on 5 seperate beach areas: Utah, Omaha, Gold, Juno, and Sword. The British armies took control over Sword and Gold, US took charge over Utah and Omaha, and Canadian forces stormed Juno. â€Å"On June 6th, 1944, the 3rd Canadian Infantry Division and the 2nd Armoured Brigade were tasked with establishing a bridgehead on the beach codenamed â€Å"Juno†. This was an eight-kilometre long stretch of beach bordering Saint-Aubin, Bernieres, Courseulles-sur-Mer and Graye-sur-Mer. Assault troops were then to move towards the Carpiquet airfield, 18 kilometres inland. The 3rd Infantry Division, under Major-General R. F. L. Keller, was under command of the Second British Army. It was flanked on the left by the 3rd British Infantry Division that was to land on Sword beach (Lion-sur-Mer, Langrune-sur-Mer). To the right, the 50th British Division had as its target â€Å"Gold Beach† (La Riviere, Le Hamel, and Arromanches).†(D-Day) Unlike the previous, unsuccessful raid at Dieppe, surprise was achieved at Normandy, thanks to bad weather and a very successful deception plan deployed in the months prior to the attack. The deceptive plan was used to distract Germany’s attention from the possibility of landings in Normandy. Another key success was to convince Adolf Hitler that landings would occur at the Pas-de-Calais. At the same time of the attack, there were also decoy operations taking place. â€Å"Fourteen thousand young Canadians stormed Juno Beach on D-Day. Their courage, determination and self-sacrifice were the immediate reasons for the success in those critical hours. The fighting they endured was fierce and frightening. The price they paid was high – the battles for the beachhead cost 340 Canadian lives and another 574 wounded. â€Å"(Juno Beach) By the end of D-Day, 30 000 Canadians had been successfully landed and all had penetrated further into France than any other Allied force! This was a defining moment for the country of Canada because, after all the previous, unsuccessful missions, they deserved a glorious victory. That is definitely what they got! All their hard work; preparing weapons, planting decoys, and all their extensive planning made this invasion so successful, and all the tedious work paid off. This event is definitive for me because my great-grandfather was involved in this attack, and thankfully returned home from it. There were definitely more than three defining moments for Canada during the 20th century, but the Battle of Vimy Ridge, the Dieppe Raid, and the Invasion of Normandy were three of the most significant. These events helped Canada grow as a nation, and made Canadians even more proud of their heritage and their country.

GAAS, GAGAS and PCAOB Auditing Standards

Audit standards are set codes of conduct for auditors when auditing financial statements or other financial issues of a company. There is also a relation to performance audit and certain attestation engagements.The American Institute of Certified Public Accountants (AICPA) established all Generally Accepted Auditing Standards (GAAS). GAAS, in turn, formed the basis for other standards like the Generally Accepted Government Auditing Standards (GAGAS) and the Public Company Accounting Oversight Board (PCAOB). This paper seeks to define those three standards, while clarifying the similarities and differences between them.All the three standards have some underlying similarities. They all address the basic audit issues like transparency, accuracy, reliability etc of financial statements.They all also spell out standards for audit field work and performances, simultaneously spelling out, on a dynamic base, the education and qualifications required of the audit and audit assistants. All th e three standards ultimately target the protection of the firm and its assets or finances. They minimize operational risks. And though driven by different objects, GAGAS and PCAOB are based on the AICPA’s GAAS.The different objectives of the three auditing standards results in a difference in their content, approach, criteria and specifications. Nowadays, the GAAS primarily deals with audits of non-issuer public companies. PCAOB, on the other hand, addresses the concerns of auditors auditing issuer and certified public companies.Its hold in matters of issuer companies, as controlled by the American Securities and Exchange Commission (SEC) is paramount. GAGAS, as set by the Government Accountability Office, applies to government organizations or organizations availing government assistance, setting auditing standards for their functions, activities, programs and so on.[1]IntroductionThe external audits of governmental and non-governmental entities may be broadly classified int o Financial Audits, Performance Audits and Attestation Engagements. Auditing Standards have some General Standards, as well as Field Work Standards and Reporting (GAO, July 2007).The Generally Accepted Audit Standards (GAAS) are issued as Statements on Audit Standards (SAS)[2]. This is done by the Audit Standards Board or ASB which has been set up by the AICPA. These standards relate principally to the audit processes and procedures which are to be adopted by the public companies not issuing shares. [3]The General Accepted Auditing Standards are sets of systematic guidelines used when conducting audits on company finances, to ensure accuracy, consistency and verifiability of auditor’s action and reports.However, for auditing government bodies, the US Government Accounting Office sets separate rules and standards, outlined by the GAGAS. These include auditing of their activities and programs, as well as all their functions.The objective is to ensure proper use of funded assist ance availed from government bodies or agencies. (GAO, Jul 2008). Companies that issue shares and that are registered with the Securities and Exchange Commission were placed under the standards of the PCAOB[4].As per the provisions of GAGAS, their reference incorporates GAAS, unless the Government Accounting Office specifically excludes them through a formal announcement. Sometimes, depending on the audit requirements and the organization being audited, GAGAS may be used together with PCAOB.Basic Objectives and Premises behind all Audit Standards:The similarities amongst all the auditing standards may be drawn from their basic premises and government policies driving them. For example, all auditing standards serve as a regulatory tool, prescribing the process to be followed by auditors, and determining what is to be scrutinized in the financial statements, internal control processes and management performances.Audits done on an organization’s financial statements express an o pinion on the fairness with which the statements represent the status and changes in the financial position, operational results and cash flows.Universally, audits need to be performed by a person or persons who has/have adequate technical training and proficiency as an auditor. The auditors need to maintain their independence so that their assessment and opinions reflect an impartial and objective view of the issues involved. They are also expected to exercise due professional care in planning and conducting the audit report [5].The auditor must have sufficient knowledge of internal control processes so as to enable him to plan properly and arrive at the nature, extent and timing of tests to be performed for ensuring a proper audit. While in the field, the work needs to be adequately planned and properly supervised.The competency and sufficiency of evidence reviewed needs to be assured so that the auditor and others can form a proper opinion on the financial matters in the organiza tion, which is subjected to the audit.All performance audits have similar standards. The auditors must prepare written audit reports communicating the audit results[6].   The audit reports should be prepared and made available so as to ensure timely use by management legislative and other interested parties.The auditors must report the scope, objectives and methodology of audits. They must report any significant findings of audits and in the applicable cases, also the auditor’s conclusions.They should report recommendations for action. This is to correct problem areas and ensure operational improvement. They must state what auditing standard was used in the reporting. All cases of significant non compliance or abuse must be reported, found during or related to the audit. In some cases, this reporting has to be done to outside parties.Appropriate inspection and observation must be conducted to gather competent and factual evidence so that a reasonable opinion on the financia l state of affairs of the organization under audit may be formed.Audit work must be properly planned & materiality considered for arriving at considered opinions based on competent evidence by selecting appropriate nature, timing & extent of tests. Audits must be designed so that material frauds may be detected reasonably well.[7] It is notable that frauds are intentional misstatements.Material misstatements may result from direct & material illegal acts and this is to be considered in audit design so as to ensure the reasonable detection of such misstatements through the audit process.[8]   The auditor must detect any indirect illegal acts that may indirectly affect correctness of financial statements by applying audit procedures[9] (GAO, Jul 2007).Every audit strives to maintain accountability and transparency within any organizational policy, whether for governmental or non-governmental organizations. To this end, public resources within an organization must be efficiently, eth ically, effectively, equitably and economically utilized.Where this is not the case, audits prescribe the remedial steps to be taken in a time-bound manner by the organization’s management and other concerned parties. All assessments by the auditors must be objective, concise, independent and factual, as related to an organization’s financial or management performance. The auditor therefore needs to be independent and impartial. All this adds up to a case for complete professionalism and quality of audit processes.