Host Country Political and Legal Environment Affect of Airasia

COMPANY AIRASIA Content a. Introduction b. Company bibliography c. Entry mode to international market (through exporting, joint venture, franchising, licensing, etc) d. How do the international market / culture, management styles and business system affect the company performance? Do they have to adjust / alter their product or services to fit with the host country market needs? How does the company face the competition? e. How does a host country political and international legal environment or trade barrier affect the Malaysian companies in their international marketing activities?Bagaimana sebuah negara tuan rumah persekitaran politik dan antarabangsa undang-undang atau perdagangan halangan menjejaskan syarikat-syarikat Malaysia dalam aktiviti pemasaran antarabangsa mereka? Bagaimana sebuah negara persekitaran politik dan undang2 antarabangsa memberi kesan kepada syarikat Malaysia dalam aktiviti pemasaran antarabangsa mereka? f. SWOT analysis of the company in term of their 4 Ps ( product, price, promotion and place) g. Any others additional information h. Conclusion i. References a,b,h – part 1 c – part 2 d – part 3 e – part 4(fathi) – part 5 each person choose one to do it n leave a comment which part u all do yea†¦ tq BUS 488 Strategy – T01 Question 1 AirAsia, which is one of the earliest low cost carriers (LCC) in Asia, has become a LCC since 2001. So far, it has expanded its network from Malaysia to Thailand to Singapore, Macau and even the Mainland China in 2006. In short, Air Asia â€Å"jumped out† from an intra-Malaysia and Thailand market to a â€Å"real Air Asia† in the continent. Thus, what are the possible core competencies to ensure that there is quantum leap to success?The internal analysis on the company below will answer the question. Resources, Capabilities & Core Competencies Analysis a)Accounting Ratio Analysis In 2004, Air Asia’s earnings margin before interest and taxes ( 16. 8), return on capital employed (14. 6) and return on equity (37. 7) accounting ratios were above the industry average – 14. 5 is the industry average for earnings margin, 11. 6 for return on capital employed and 21. 2 for return on equity. This above average results indicates that the company has been managed well and thus is able to achieve high above-average returns.The increase in current ratio from 1. 24 (US$49. 206 million / US$39. 643 million)to 5. 60 (US$230. 024 million / US$41. 099 million) also serves as a confident booster to investors and shareholders in that Air Asia’s solvency had strengthened and thus is able to fulfill its debt obligations. In fact, the debt-to-asset ratio in the last 5 years was low and decreasing too. As a matter of fact, in 2005, it was merely 0. 14, which was comparatively lower than many low cost carriers. b) Finance Resources Air Asia’s net profit ending Jun 2005 was reported US$29. million, a 126%increase year-on-year. The end of June 2005 financial summary showed that Air Asia, the leading low cost airline in Asia, had a huge reserve (bank and cash balances) of US$86. 6million. This is the company’s strength as very few low cost airlines of similar size have such large reserves. With such huge reserves and low debt-to-asset ratio, Air Asia is thus capable of generating internal funds to finance any expansion. It is certainly Air Asia’s strength. c)Organization Design and Organizational ResourcesAir Asia’s organizational structure is rather simple and flat as it involves a group of staff in the company reporting to one manager. This serves Air Asia well as the  business requires a structure with fewer levels of management so as to achieve more consistency and cost reduction. In addition, the cost leadership strategy that the company adopted also allows Air Asia to focus more intensely on areas such as in/out-bound logistics, operations, marketing, services and customers. Th is in turn helps to create synergy and capability to deliver the full spectrum of low cost carrier business. ) Physical Resources Despite having a large fleet of Boeing 737 aircraft for operation, Air Asia still continues to invest heavily. This includes the acquisition of more fuel-efficient aircraft (A320) so that the company can have sufficient capacity to meet the growing needs and demands of their customers as well as to continue to keep its cost low. The new aircraft can lower fuel usage by about 12%, an important cost saving, as fuel accounted for  almost 50% of the total operating costs for the company over a period of time. ) Technological Resources Air Asia was the first airline in Southeast Asia to utilize e-ticketing so that traditional travel agents can be bypassed. This implementation saves the cost of issuing  physical tickets and eliminates the need for large and expensive booking and reservation systems. To further exploit technologies, AirAsia made it possible for customers to  purchase tickets either from post offices or designated bank teller (ATM) machines.In short, Air Asia's strength is also about the ability to leverage on technologies well and ahead of its competitors to increase sales and lower costs. Human Resources Management Although the employees were not unionized and the salaries offered by the company were below those of its rivals, AirAsia is still able to keep its work force motivated by providing a remuneration policy that is competitive and attractive. For  instance, all employees are offered a wide range of incentives that includes productivity and performance-based bonuses, offer of shares or stock options.To provide further  aircrew and cabin incentives, AirAsia also adopted a sector pay policy that gives extra incentives and thus this resulted in the company needing fewer crews per flight (106 per  aircraft) as compared to other low-cost airlines (110 per aircraft). All these efforts not only helped to impro ve productivity, it also further strengthened employer-employee relationships. In summary, human resource management, particularly the ability to motivate and improve productivity of the staff is surely Air Asia’s strength. g) Innovation Resources and Product DevelopmentSo far, AirAsia has managed to design its aircraft cabins that can minimize wear  and tear, cleaning time and cost. This innovative work allows for quicker turnarounds  between flights and helps increase revenues. In addition, AirAsia is also able to leverage on innovative ideas to derive substantial ancillary revenues from additional services. For  instance, the companies also have their own branded credit card and offers corporate travel services. Consequently, it also develops aircraft advertising by converting its planes into â€Å"flying billboards†.The ability to innovate and come up with unique innovations to lower  costs and increase revenues shows that AirAsia possesses substantial qual ity innovation resources that are valuable. h) Reputational Resources Air Asia’s success has been widely recognized. For instance, in 2003, it was named the â€Å"Developing Airline of the Year† (by Air finance Journal) and the â€Å"Asia Pacific Airline of the Year† (by Centre for Asia Pacific Aviation, CAPA). In 2004 and 2005, the company also won several prestigious awards. Similarly, the company’s CEO, Tony Fernandez has also won several recognitions.Most notably, the International Herald Tribune listed Mr. Tony Fernandez in its Visionaries and Leadership series in 2003. Hewas consequently named the â€Å"Asia Pacific Aviation Executive of the Year† in 2004 and2005 (by CAPA) and is one of the 25 stars of Asia (by Business week). With just 3 years into operations, AirAsia managed to be listed publicly in  November 2004 with support from bankers and venture capitalists. AirAsia was subsequently named as one of the â€Å"Best Newly Listed Compa nies† and Asia’s â€Å"Best Managed Company in the Airlines and Aviation Sector by Euro money after its IPO.Given the positive perceptions of Air Asia’s reputation, the brand name is certainly the company’s strengths. i)Risk Management In general, the types of risks AirAsia faces include: (1) pure risk; (2) price risk; and (3) credit risk. AirAsia purchased insurance policies to mitigate pure risk although it is done and operated a bit differently as it adopts an integrated approach risk management that goes beyond the traditional parameters of what is insurable. For instance, when AirAsia purchases insurance any policies to insure against pure risk, it also makes a conscious effort to acquire them at a much lower rate lower than other LCCs.In addition, to mitigate price risk, AirAsia hedged fuel prices at US$42 a barrel for the first half of  2005, which was substantially lower than the price per barrel of US$70 in the late 2005. AirAsia has little exp osure to credit risk as it does not lend money to any external parties. Better still, customers who wish to purchase their air tickets need to make payment almost immediately upon booking. Hence, this eliminates credit risk totally. So far, Air Asia’s holistic approach to risk management effectively is viewed favorably by its stakeholders most of the time, especially the shareholders. ) Logistics This involves all areas of receiving, storing of inputs when producing outputs. So far, AirAsia only operates on a single type of aircraft, the Boeing 737-300. Based on a Report published by Aero Connections in 2004, that particular model was the best selling commercial jet of all times due to its efficiency and cost effectiveness. AirAsia also has1382 employees and they received proper on-the-job training workshops so that they can  perform multiple roles effectively within a simple and flat organization structure. ) Operations It processes inputs to provide valuable products/serv ices. AirAsia has always been stringent about standards and procedures. AirAsia is aware that maintaining its passenger  safety is of paramount importance – as indicated in the surveys in the United States and Japan. Based on the company’s 2003 annual report, AirAsia had joined ventures with GE Engine Services for a business alliance that allows the latter to be in charge of  maintaining all Air Asia’s aircraft engines in the next five years.AirAsia had also managed to achieve good operating benchmarks in terms of flights on time and baggage handling where in 2004, the company registered 88% and 99. 9% respectively. c) Outbound Logistics This involves delivering products/services into a distribution channel or to the final destination. As of late 2005, AirAsia operated 32 Boeing 737 aircraft that run over  60 routes across Southeast Asian regional network. Not only that, its aircraft interiors is also outfitted with signature red carpeting and plush leathe r seats to enable its guests to travel comfortably.In addition, it was also reported in prominent journals and magazines such as ABJ and AWM that many customers felt that Air Asia’s cabin crew demonstrated  professionalism when carrying out their duties on air. d)Marketing and Sales It involves all activities that inform customers about their products/services; including those that induce and facilitate customers in making purchases. So far, AirAsia has promoted its company without incurring high sales and marketing expenses. For  instance, its CEO Tony Fernandez always wears a red AirAsia baseball cap in any of his interviews.His well thought out statements often reinforce Air Asia’s positioning as a small entrant firm battling against giant industry incumbents that also offer low prices. As such, when required, it also invested heavily and so far, its major sponsorships included  being the â€Å"Official Low Fare Airline† for football giant Manchester Un ited. This deal involved global sponsorship and advertising. e)Service AirAsia is one of the few airlines that had the shortest turnaround time, around 25minutes as opposed to 45 to 120 minutes recorded by other airlines. Hence, this allows AirAsia to benefit from conducting more flights a day.Besides that, AirAsia emphasizes lot on maintaining a high quality service to all its passengers such as punctuality rate and excellent baggage-handling performance t o determine whether AirAsia has any core competencies (sustainable competitive advantages), the company’s capabilities are assessed based on the four criteria – valuable, rare, difficult to imitate and non-substitutable. The evaluation results so far revealed that two core competencies below:(1) The possession of tacit knowledge to build a business by leveraging on new technologies (internet). 2) The religious zeal to cost-avoidance coupled with tacit knowledge to build extremely efficient processes to enable it to execute its business model (low cost). Success Factors of AirAsia As AirAsia continues to compete with other LCC (both existing and new) in Asia which also may adopt low-cost strategy, what have to remember and realize that the way customers differentiate them from their competitors will be strictly on â€Å"fare† and reputation. As the saying goes, â€Å"the lower the price, the higher the load factor†. As such, Air Asia’s success is based on the following key factors: )Cost Effectiveness AirAsia puts very strong emphasis on lowering all avoidable costs so that it can continue to provide low fares and yet remain profitable. This means the company has to cut the cost of flight operation by flying to and from airports that offer cheaper take-off  and landing fees. Besides that, passengers also were not provided with meals and entertainment as well as amenities such as pillows and blankets. AirAsia has also designed its aircraft cabins that minimize wear and tea r as well as cleaning time so that cost associated to these areas can be lowered.The better designed cabins also resulted in lower loading and unloading costs as things got done faster which in turn leads to better turn around time. Last but not least, to ensure cost effectiveness, AirAsia reconfigured the seating configurations of its Boeing 737 aircraft to increase seats from 132 to 148 and has thus far operated with only a single-class service. b) Efficiency and Productivity By using a ticket-less online booking system, staff that are properly trained to  perform multiple roles as well as aircraft cabins that reduce cleaning ime, AirAsia greatly enhances it operations efficiency and productivity, which is a very important of  the cost leadership strategy. However, it should be noted that the cost leadership strategy works on the lowest costs, not necessarily the lowest price in the market. As the lowest cost operator, AirAsia is able to continue to survive in a price war as i ts low-cost positions a valuable defense against any rivals. c) Reliability AirAsia also chose more consistently secondary and regional airport destinations instead of busy and congested main airports.Generally, less busy airports can be expected to provide higher rates of on-time departures. Besides, without the need to load and unload any cargoes, the turnaround time of an aircraft can be reduced greatly –  AirAsia clocked the regions fastest turnaround time at only 25 minutes. As a result, travelers can expert and look forward to more frequent and puncture flights. D) Higher Frequency of Service Predominantly, AirAsia offers point-to-point flights on short-haul routes – less than 4 hours flight time. The company is also able to achieve higher plane utilization due to short turnaround time and as mentioned point-to-point routes.The ability to provide higher frequency service to justify the smaller capacity of a LCC is another key to Air Asia’s success. In so me instances, such high frequency of services can also attract  business travelers since most of the time they are able to save time and catch their  connecting flights on time All the success factors mentioned above explain Air Asia’s success. However, it should also be noted that Air Asia’s zealous approach in preaching cost avoidance in every aspect of  administration and operations is the key in sustaining a low-cost culture since its operation in2001.AirAsia also has been particularly effective at implementing the various measures and thus it continues to survive and prosper till today. Question 2 The construct of cost leadership strategy emphasizes on lowest costs, though not necessarily the lowest price, in the market. A firm pursuing a cost-leadership strategy needs to gain a competitive advantage primarily by reducing its economic costs below its competitors. To achieve this, the strategic actions must thus reduce costs and improve productivity. With thi s in mind, let us discuss how the following strategic actions adopted by AirAsia support its cost leadership strategy.A) Low Fare, No Frills Air Asia’s intense focus on providing air travel with no frills leads to substantial costs saving. The absence of in-flight services reduced pre-flight preparations such as the loading of food and drinks, cleaning time and the cost of meals and administration. Investment in kitchens and equipment for storing, heating and serving of meals can be avoided all together. B) Investment in Latest Technologies ; Efficient Operations AirAsia has heavily invested in purchasing the most modern aircraft A-320s.The new aircraft allow AirAsia to enjoy substantial lower fuel cost as these modern airplanes had lower fuel usage by as much as 12%. Fuel accounted for almost 50% of the total operating costs and thus it is an important component of cost saving for AirAsia. By operating a single aircraft type allows AirAsia to achieve efficiency in executing its primary and secondary activities. Consequently, this leads to higher  productivity which in turn allows the company the option to expand their operations with the same number of employees and right size its manpower requirement. Improved  productivity means more revenue for AirAsia.The extreme drive to achieve high efficiency in operations allows AirAsia to clock the fastest turnaround time of 25 minutes. This invariably leads to comparatively  better productivity as the company was able to utilize its aircraft for an average of 13hours per day as opposed to 10. 5 hours by other airlines. Again, improved productivity means more revenue for AirAsia. c)Low Fixed Costs Air Asia’s ability to acquire low rates for long-term maintenance contracts and aircraft leases led to substantial cost savings. It was reported that Air Asia’s average contractual lease charge per aircraft decreased by more han 60% from 2001 to 2004. Similarly, its aircraft maintenance contract c osts were also reported to be substantially lower than any other airlines. In view of the airline’s high safety and maintenance standards, AirAsia was also able to procure favorable rates on its insurance policies. All these help lower fixed costs. d)Lean Distribution System The use of e-ticketing helps to save the cost of issuing hardcopy tickets, which were estimated at US$10 per ticket. The company also saved on agents’ commissions’ and avoided the need for large and expensive booking and reservation systems. This too helps lower the overall costs. ) Minimize Personnel Expenses AirAsia implemented flexible work rules and streamlined administrative functions which allowed employees to perform multiple roles. This human resource policy facilitated AirAsia in lowering its personnel costs. In 2004, it was reported that AirAsia had the lowest staff-to-per aircraft ratio (106 staff per aircraft as compared to 110employees per aircraft registered by other low cost c arriers) and this helps lower staff  cost. f)Use of Secondary Airports Typically, AirAsia operates out of secondary airports, which involve lower  landing, parking and ground handling fees.These airports were also less busy and had shorter runways, thus helped reduce fuel consumption while aircraft queue for takeoff or  taxi on the ground. As many secondary airports were older, they were often close to urban areas and were thus more attractive to some travelers. In short, the use of  secondary airports can increase sales and help to keep operating costs low The ability to lower cost and at the same time widen profit margin (through increase  productivity) augurs well with AirAsia’s cost leadership strategy.This provides AirAsia the options to either lower its prices and gain market share and sales from rivals or keep its prices at  present market level and make more profit for every unit sold. This inevitably helps AirAsia in its defense against aggressive competi tions especially when it comes to price war from strong rivals Question 3 The PESTL Analysis and the Porter Model provide an overall analysis of the operating environment that AirAsia competes in. Also, the analysis of low cost carriers (LCC) industry reveals that it is so concentrated that intense competition is inevitable.However, amidst the challenges faced, there are still plenty of opportunities for AirAsia to explore and exploit. PESTL Analysis – Macro Environment a)Economics Asia’s rapid economic growth and sprouting middle class continues to fuel the growth of air travel in Asia. This growth in air travel was also due to the region having geographically dispersed countries with large population, a rapid increase in trade and tourism as well as the respective government investments in their airports, airlines and travel infrastructure.Although rapid growth and increased trade and businesses may intensify competition (entrance of other LCCs) and even lead to full -service airlines start cut costs to complete, it can present opportunities for airlines to enlarge their markets. Of  late, projections by economists had placed Asia at the top of global economy growth charts in the coming years. b)Political/ Legal Government policies are important drives for the success of Asia. In the late1990s, there was increase privatization and deregulation of the airline industry in Asia.It was noticeable that some Asian countries established open-skies agreements while others allowed the entry of private airlines. For instance, in 1997, a few LLC spouted quickly after Malaysia signed an â€Å"open-skies† agreement with the United States. Hence, it appears that although the travel market will be expanded, in reality AirAsia would also have to operate in a more challenging environment with intense competitions. As of 2006, governments’ intervention and regulation remained substantial.For  instance, although Thai AirAsia managed to launch its services between Singapore and Thailand in 2004 successfully, the company still could not expand beyond the Singapore-Thailand routes because it could not acquire landing rights elsewhere. c)Social-Cultural Surveys revealed that more people were willing to compromise on food and other  services in exchange for lower prices. In fact, it was stated that price of tickets was the single most important consideration that influenced passengers’ decisions and of course this included without having to compromise on safety and punctuality.In addition, increasingly over the years cost conscious leisure and business passengers were also looking to make their budgets decrease further. This presents an opportunity for all LCCs to increase their revenues by offering travelling at a much lower fare. d) Demographic In 2005, the total population in Asia stands at more than 3. 5 billion. The United  Nations’ statistics also show that Asia has an astonishing demographic dividend â⠂¬â€œ where more than 35% of its population is below the age of 25 and more than 55% hovers below the age of 35.This indirectly means that the increasing large population of the middle age group equates to a larger working age population with more disposable income and thus the likelihood of more business and leisure travels is almost confirmed. This thus presents another golden opportunity for AirAsia. e)Technological New services such as Internet Telephony and the increase in the use of  telecommunications services (such as buying air tickets online) provide AirAsia with the opportunity to leverage on new technologies to increase their sales.In addition, e-commence and internet-based activities (such as online holiday and hotel reservations)are other areas where AirAsia can derived ancillary revenues from. Better still, in some instances, technology advancements also means having opportunities to reduce operation costs such as savings on commissions for travel agents – Ai rAsia was the first to do so However, amidst these benefits and cost saving, AirAsia must be mindful that system disruption due to heavily reliance on online sales can pose serious threat to the company. Analysis of the Industry In 2004, the airline industry flew 1. billion passengers, of which about 30% were in Asia. Airline traffic in Asia is projected to grow at 7. 1% annually for the next 5 years and more than triple in the next 20 years. Given Air Asia’s strong presence in the region, this presents vast opportunities to enlarge the company’s market shares. The Airline businesses are closely linked to economic activities in Asia and the world. As such, AirAsia needs to be cognizant with the business cycle so that it can to take full advantage of such effects especially when there are changes in discretionary income and consumer  spending patterns.AirAsia also needs to be mindful that increase in demand of fuel and limited supply can lead to higher fuel price that decrease yield. Last but not least, the impact of crisis such as 9/11 (2001) and SARS outbreak (2003) was able to hit the airline industry badly and as such they continue to pose serious threat to airlines. Analysis of Competitive Forces – Porter’s Five Forces Analysis a)Threat of Substitute Products The possibility threat of substitutes is moderately low; since there are several other substitutes such as cruises, rails, buses and cars.However, the archipelago geographical structure of Asia made air travel the most viable, efficient and convenient mode of transportation which is a surplus for AirAsia b) Power of Buyers The power of buyer is high due to almost no switching cost for customers to switch from one LCC to another. In addition, the access to the internet also allows customers to have all the information on prices charged by the different LCCs. c)Power of Suppliers The supplier has an upper hand (high power) due to limited number of suppliers(only Boeing and Airbus). d)Threat of New EntrantsThreat of new entrants is moderately low as the entry into the industry requires high capital. Moreover, the industry is also highly regulated since every potential entrant is required to obtain approval from the civil aviation authority of the particular country  before the company is allowed to be operated. e)Intensity of Rivalry Industry rivalry is moderately high due to competition and high exit cost. Nonetheless, market participants understand and realize that price war is destructive for  them and thus they tend to avoid direct price competition to make themselves ‘friendly ‘competitors.Stakeholder Management Air Asia’s stakeholders can be divided into capital market stakeholders (shareholders and major suppliers of capital e. g. banks and venture capitalists), product market stakeholders(primary customers, suppliers and host communities) and organizational stakeholders (employers and managers). Air Asia’s stellar performance since its establishment in 2001 has brought value to its shareholders since they were receiving positive returns from the day of the company’s inception to recent time 2005.Between 2001 and 2004, AirAsia enjoyed a compound average growth of  45% for sales and 407% for net income as well as cash flow positive from the time it began its operations. All these inevitably increase the value of investments significantly. This probably explains why AirAsia has always enjoyed strong support from banks and venture capitalists when the CEO took the company public in November 2004. AirAsia satisfies its customers by offering low fares without having to compromise to quality and service. This helps to attract new customers as well as retain existing ones.In order  to ensure that all specific needs are met, the company’s key staffs travel regularly to mingle with the host communities so that they understand them better. This has facilitated Air Asia’s aggress ive expansion and resounding success in the regional markets – which include Thailand and Indonesian over a short span of time. For instance, Air Asia’s joint venture with Shin Corporation to launch its new LLC achieved immediate success. In just 3 days of operations, it sold more than 20,000 seats on domestic routes.This speaks well of Air Asia’s ability to meet (or  even exceed) the expectations of its customers. Besides that, AirAsia also strives to build strong relationship with its suppliers. For  instance, although the company operates 737 aircraft that were built by Boeing, it also acquired the new A320 aircraft from Airbus. In this way the company establishes good relationship with the two and only civil airliner suppliers and hopefully through these good mutual dealings, the  power of these suppliers can be further reduced.The company also strives to maintain good relationship with other suppliers that provide aircraft maintenance and airport serv ices. This  probably also explain why AirAsia is able to get lower rates from them. As a staff of the AirAsia team, he/she gets to enjoy highly competitive and attractive remuneration packages. These include productivity and performance-based bonuses, shares and stock options. In summary, with the capability and flexibility provided by above-average returns, AirAsia is able to satisfy multiple stakeholders more easily Marketing ; Customer SegmentationAlthough AirAsia invests aggressively in marketing where required, it generally adopts creativity and yet low-cost advertising so as to keep cost low. For instance, to keep cost low, AirAsia commonly advertises and promotes through the host country newspapers as well as internet website as they are generally cheap. Like all other LCCs, AirAsia also positions itself as an airline that provides short-route ferry for non-business and price-conscious business  passengers as shown in Diagram 2 . This means that competition is intense and increasing as new  players join in Competitors AnalysisBased on a report about major Asian budget airlines that Airline Business produced, onlytwo LCCs, Bangkok Airways and Lion Air, share almost similar markets as AirAsia in terms of  market commonality. Their tangible and intangible resources are also comparable to that of  AirAsia. With that, based on the competitor analysis framework appended in Diagram 3 , Bangkok Airways and Lion Air fall in ‘quadrant I’ and thus are considered as close competitors of AirAsia. Technically, any firm or competitors in ‘quadrant I’ will use their similar resource  portfolios to compete against each other.This lead to the conclusion that Bangkok Airways and Lion Air modeled in ‘quadrant I’ are direct competitors of AirAsia. In contrast, the other airlines such as Value Air and Tiger Airways modeled in ‘quadrant IV’ share few markets although they all possess comparable resources. As such , these airlines do not directly pose as strong rivalry to AirAsia at this point in time. As of now, AirAsia will have to compete with Bangkok Airways and Lion Air which have entered the market since 2000/2001.As they also adopt the low-cost strategy, the only way customers can differentiate them from their competitors would be on the airfare charges. In order  to maintain or increase the load factor, any of these companies may consider lowering fare prices to achieve their objectives. However, if this happens, the profit margin of the remaining players will be compressed and the weak one may be drove out of the market (also known as the vicious cycle). In Malaysia, Air Asia’s main airline competitor is Malaysia Airlines (MAS) which offers a full range of services.Although MAS had an ambivalent reaction to Air Asia’s entry into the airline industry, it also reacted to the competition by offering fares at 50% discounts on some its domestic routes. Although the ‘ attack’ was not successful (MAS eventually lost about 30% of its market share), it proves that any airlines that provide full services can be a threat to AirAsia. Moving forward, it is expected that acquisition and merger will happen in the market until equilibrium is reached. When this takes place, only a few strong players with sound cost-controlling and profitable business model will exist and succeed.In other words, AirAsia can expect to face stiff competition in time to come even though market participants understand that  price war is destructive and thus will try to avoid any direct price competition. A short summary on the possible opportunities and threats are appended in the table  below. From the analysis of AirAsia, it can be deduced that the operating environment immoderately competitive and filled with minimum uncertainties – which means that the company has to prepare themselves well during good times.However, amidst the challenges, there are still m any opportunities for AirAsia to explore and exploit so that it continues to lead and be the most  profitable LCC in Asia. Amik kt dekstop-airasia Question 4 AirAsia has been soaring success. Starting with two planes bought from a Malaysian conglomerate in late 2001, the company had expanded it to 32 by the end of 2005. During the same year, the aggressive expansion also resulted in an extensive Southeast Asian regional network of 60 routes. For sure, the large, untapped market and Air Asia’s model would ensure its future success. a)Conducive Environment for GrowthThe major macro environment factors suggest a very conducive environment for  the growth of low cost carriers (LCC) in Asia. According to TWA (Dec 2003), it mentioned that in Asia â€Å"the demographic fundamentals of large populations that include rising middle classes with increasing leisure time and disposable incomes as well as the lack of competitive forms of transportation, paint an extremely encouraging demand  Ã‚  picture in the long run† . Furthermore, a study by the Centre for AP (2002) confirmed that Asia would continue to offer attractive conditions for the air transportation industry.It estimated that Asia would account for 30% of the world market by 2020 or one third of  growth between now and then. The archipelago geographical structure of Asia continent is also an important contributing factor to the growth of air transportation. For example, between East and West Malaysia, there is no other viable and efficient mode of transportation other than to commute by air. As a matter of fact, in mid-2005, eight budget airlines were operating in Southeast Asia and there were predictions that there would be as many as 20 such airlines  by 2012.Although terrorism and SARS do impact on air travel, the long run forecast is very positive. b)Strong Finance Resource The company has been profitable from the start. It has a huge bank and cash  balances of US$86. 7 million, wit h no loans and borrowings as of 30 June 2005. Its profit margins of 38% (before interests, taxes, depreciation and amortization) were among the highest in the world for LCC. According to a report by CSS (2005), it was deduced that AirAsia would continue to be profitable in 2006.This probably explained why in 2004,  bankers and venture capitalists had provided funds to help the company got listed despite the airline industry was being badly affected by SARS. In short, a strong finance resource is vital for growth and to wrestle any economic crisis. This in turn sustains success. c)Obsession with Low Cost Culture In some respects, the most important requirement to sustain success in the LCC industry is to possess a genuine low-cost culture. Unlike other LCC, AirAsia preached cost avoidance with religious zeal. For example, even though a luggage tag costs less than US$0. 5, AirAsia does not provide them. In addition, it also emphasizes cost deduction so intensely that in-flight ovens must not be overheated and that cabin lights switched off at appropriate times. To further lower cost, the company was the first to implement taking reservations via the internet rather than through travel agents. It operates only one type of aircraft to save on overheads and operating cost. AirAsia crews are also required to help clean the aircraft so as to shorten turnaround times to achieve higher aircraft utilization.At 29 U. S. cents operating cost per available seat-kilometer, Air Asia’s operating cost is the lowest in the industry. With such as an obsession withcosts, AirAsia is certainly poised to sustain its success. d)Effective in Implementing Cost Reduction Measures Even though most low cost carrier had implemented the various cost reduction measures, it was AirAsia that had implemented them most effectively. As a result, AirAsia achieved cost per average seat kilometre of 2. 13 U. S. cents, the lowest for any airline in the world.This in turn allowed the company to achieve profit margins of 38%(before interests, taxes, depreciation and amortization) which were among the highest in the world for LLC. In addition, the company was also able to achieve good operating  benchmarks in terms of flights on time (88%) and baggage handling efficiency (99. 9%). This in turn resulted in further cost reduction as the company paid much lower charges and compensations as compared to other airlines. The ability to ensure that the central objective of achieving bigger cost advantages than the company’s rivals (by continuously

Succubus on Top CHAPTER 24

Seth had chided me for being late, but with five daughters, the Mortensens were always running late. So no one, except Seth, really paid much attention to my tardiness. Likewise, with so much chaos, no one really noticed that he and I didn't talk much. The girls spoke more than enough for all of us, and I took some comfort in their presence. As always, they couldn't get enough of me, crawling all over me and tugging at my sleeve to make sure they had my undivided attention. I enjoyed it all in a bittersweet sort of way. Convinced Seth and I were on the verge of a break-up, I mostly kept thinking that this would be the last time I would hang out with this wonderful family. Andrea provided us with an equally distracting birthday/Thanksgiving meal. Terry and Seth had helped her, it turned out, but I still marveled that they had pulled it off while still managing the little ones. I said as much to Andrea. â€Å"Parenthood makes you the ultimate multitasker,† she informed me. â€Å"You'll see what I mean when you have kids.† I smiled back politely, not bothering to tell her there'd be no kids for me. â€Å"Besides,† Terry said with a grin, â€Å"we understand you're already sort of a superwoman. Seth was telling us about some crazy shindig you threw together at the bookstore?† â€Å"Uncle Seth said it was cool,† added Brandy. â€Å"It was a fest,† I corrected, glancing at Seth in surprise. I couldn't figure out at all what his feelings were for me. He'd invited me over and had apparently been singing my praises. None of that jibed with the fallout I expected from the Bastien incident, nor his initial stunned reaction to it. Seth opened presents after dinner, the bulk of which were books and more contributions to his wacky T-shirt collection. â€Å"Where's your present?† Kendall asked me. â€Å"I left it at home.† We all hung out and talked after that, my apprehension mounting as I wondered where this evening would lead. When the party finally disbanded, Seth asked me if I wanted to go somewhere. I took a deep breath. It was now or never. â€Å"Let's go to my place.† Once back there, we stationed ourselves on my couch – at a proper distance – and talked about everything except our relationship. I told him about my new position and got his congratulations. He told me about some interesting fan comments he'd received at the signing. When this had gone on for nearly thirty minutes, I couldn't take it any more. â€Å"Seth, what's going on?† I demanded. â€Å"With us.† He leaned his head back against the couch. â€Å"I wondered when we'd get to this. Can't avoid it any longer, huh?† â€Å"Well, yeah. This is a big deal. This isn't like a dispute over where to go for dinner†¦this is us. Our future. I mean, I†¦you know. You know what I did.† â€Å"I do.† He studied my ceiling for a moment, then turned his amber brown eyes on me. In that moment, I almost understood why he always seemed to be staring somewhere else. When he turned his eyes directly on you, it was a hard and powerful thing. They were electric. â€Å"Aren't I allowed to forgive you?† â€Å"Er†¦no. Well, I don't know.† This conversation echoed the one I'd had with Bastien earlier. He had said the same thing, and after weighing everything, I'd decided it wasn't worth being mad at him. Was it so easy to forgive the ones you loved? â€Å"I won't lie, Thetis, it hurt. It still does. But, in some ways†¦well, it's only one step away from what you normally do.† â€Å"A big step.† He laughed. â€Å"Whose side are you on? Are you trying to turn me against you?† â€Å"I'm just trying to make sure you stand up for yourself.† â€Å"You're always worried about that. Don't worry. I'm not a complete doormat.† â€Å"I didn't mean that. I just†¦I don't know. I'm not very good at this dating thing.† â€Å"I know that. Neither am I. I've done plenty of stupid things in my past relationships. I deserve a few karmic turnabouts. Of course, that doesn't mean I want this to become an ongoing thing, but one mistake†¦one mistake I can forgive. If I haven't had much practice dating, you've got to be even worse after, what, how many years of casual, uh, flings?† â€Å"A lot,† I replied vaguely. For some reason, I was reluctant to tell Seth my age. He picked up on that, his eyes narrowing ruefully. â€Å"And right there. That's another thing. Almost worse than what happened. You're doing it again.† â€Å"Doing what?† â€Å"You don't tell me things. Things about you. It's like you're afraid to show me who you are. But like I said, that's what love is. You open yourself up. I want to know you. I want to know everything about you. Sometimes I feel like no matter how strongly I feel about you†¦I still don't know you at all.† â€Å"I'm not very good at that part either,† I said softly. Seth pulled me into an embrace, crushing me against him. There was a fierceness in that motion, an unflinching sense of possession that stirred my blood. â€Å"You're my world right now, Georgina, but I can't go on with this†¦not if there's no honesty.† His tone was gentle and loving, but I heard the warning between the lines. I'd had my fuckup. The next time, I would not get such amnesty. This terrified me a little, yet I was proud of him and realized I had a lot more to learn about him too. He had every right to be laying down the law. He was not a doormat. I regretted my mistakes, and while I was glad to be forgiven this time, I didn't want Seth to waste his life on me if I couldn't ever treat him right. My young French lover, Etienne, had never recovered. I'd learned years later that he'd broken his engagement, staying forever single. He'd thrown himself into his painting, earning a small following. Several portraits of me – as a blond Josephine – still hung in private European collections. Etienne had not been able to get me out of his system, and it had made a mess of him. I wanted things to work with Seth so badly. I wanted us to be together and be happy for as long as we could manage it. But if we couldn't, I didn't want him to waste his life on me as that young painter had. â€Å"I love you,† I murmured into Seth's shoulder, astonished when the words just slipped out. And I realized then just how much I meant them. He inhaled deeply and held me even tighter, and I felt the love pouring off of him, even with no spoken declaration. â€Å"I'm pretty sure I don't deserve you.† â€Å"Oh, my Thetis, you deserve a lot of things. And honestly† – he shifted around and studied me – â€Å"as much as it hurts†¦I'm sort of glad that you, you know, had that chance with Bastien.† I frowned. â€Å"That chance to be with a copy of you?† â€Å"Well, no. That's still kind of weird. I mean the chance to have sex and, well, enjoy it. Every time I think about what you do on a regular basis†¦Ã¢â‚¬  He closed his eyes a moment. â€Å"I just envision you being raped over and over. And I hate it. It makes me sick. I'm glad you were with someone you cared about†¦even if it wasn't me. You deserve to have good sex for a change.† â€Å"You do too,† I said, overwhelmed by Seth's nonstop selflessness. â€Å"And you know†¦if you ever wanted to find someone and just, well, have sex for the fun of it†¦well, you could. You know, just to fulfill the physical need. I wouldn't mind.† I didn't think I would, at least. I uneasily recalled my slight jealousy over his correspondence with Maddie. He looked at me seriously. â€Å"I don't have sex just to fulfill a need. Not if I can help it. Sex may not be a requisite part of love, but it is an expression of love. It should at least be with someone you care about.† The answer didn't surprise me. In fact, it suddenly reminded me of something. â€Å"Hey, I've got something for you.† Despite our dire romantic status, I had nonetheless chosen twenty of the best pictures Bastien had taken of me and had Hugh print them this week. I hadn't known until now that I'd actually be able to give them to Seth. I found them in my bedroom, bound with a pink ribbon. â€Å"Your birthday present.† I started to hand the pictures over. â€Å"Wait,† he said. He opened up the messenger bag he carried his laptop around in. A moment later, he offered me several sheets of paper. I gave him the pictures. We sat in silence, each of us studying our respective offerings. For half a second, I thought he was sharing a manuscript after all. A few lines into it, I realized it was addressed to me. It was the writing he'd promised me a while back. The detailed exposition of all the things he wished we could do. Reading it, I sort of lost track of the world around me. What he'd written was exquisite. Some of it was like poetry. A beautifully crafted ode to my beauty and my body and my personality that made my heart swell. Other parts were brazenly explicit. Hot and steamy. They made O'Neill and Genevieve's elevator look like a kindergarten classroom. I could feel the blood rushing to my cheeks as I read. When I finished, I looked up at him breathlessly. He was watching me, as the pictures had taken less time to peruse. â€Å"I take it all back,† he told me, holding up one of the shots. It showed me sitting crosswise in a chair, naked. My legs draped over the edge lazily, showing a nice view of my pink painted toenails. A hardbound copy of one of Seth's books sat on my lap. â€Å"Sex might be a requisite part of love after all.† I glanced down at the manifesto. â€Å"Yeah. It just might be.† We sat there a moment, then burst out laughing. He rubbed his eyes. â€Å"Thetis,† he said wearily, â€Å"what are we going to do with ourselves?† â€Å"I don't know. Do the pictures just make things worse?† â€Å"No. They're wonderful. Thank you. They're a good way of having you†¦even if I can't have the real thing.† An idea slowly coalesced in my mind. The pictures just involved looking. Looking was safe. And one didn't just have to look at a two-dimensional image. â€Å"Maybe†¦maybe you can have the real thing.† He gave me a quizzical look, and I hastily amended: â€Å"In a hands-off way. Come on.† â€Å"This seems dangerous,† he said when I led him to the bedroom. Sunset was filling the room with mood lighting. I pointed to a chair in the corner. â€Å"Sit there.† I moved to the opposite corner, hoping it was enough space. â€Å"What are you – Oh.† He bit off his words, swallowing. â€Å"Oh.† I slid my hands slowly up over my hips and breasts, over to the top button of my blouse. Slowly, deliberately, I unfastened the button. Then, just as carefully, I moved down to the next button. And the next. Then I unbound my hair, letting it fall messily over my shoulders. A striptease is all about letting go of self-consciousness. And it's about pacing too, I supposed. Admittedly, doing a show in front of Seth, whom I loved, moved into a realm I felt a little unfamiliar with. Nervous energy twitched inside me, but I didn't show it on the outside. I was on the stage, and I moved through my steps with sultry confidence, watching my own hands sometimes and making eye contact with him at others. This was part of my gift to him. He obviously liked seeing my body, even if, for the moment, he watched like one frozen, eyes wide and face carefully controlled. The blouse eventually fell to the floor, followed by the skirt. I'd had bare legs earlier today but had covertly shape-shifted on thigh-highs while we walked to the bedroom. Left only in those and a cherry-red bra and panty set made of satin, I languidly moved my body in smooth and alluring ways as I played with edges and straps. The stockings came off next, each one rolled down with delicate motions that let my hands slide against my own skin. Left in almost nothing, I savored the shining satin, trailing my fingertips over the bra and panty's surfaces. At last they peeled off too, and I was left in only my skin, left fully exposed and with a surprising heat burning in my lower body. I had turned myself on as much as him. I stood there a moment, like I was taking in applause before an audience, then started to walk across the room. â€Å"No,† he said, voice thick and husky. His fingers dug into the chair's arms. â€Å"You'd better not get too close.† I stopped, laughing softly. â€Å"You don't strike me as the assaulting type, Mortensen.† â€Å"Yeah, well, there's a first time for everything.† â€Å"So you liked?† â€Å"Very much.† His eyes were drinking me in, ravenous and needful. â€Å"That was the best thing I've ever seen.† Pleased, I stretched out my muscles, holding my arms over my head a moment before exhaling and letting my hands fall. As they did, I ran them down over my breasts and thighs in a careless gesture I didn't really even think about. Yet, as I did it, I saw his posture stiffen slightly and that fire in his eyes flare up. A slow, dangerous smile spread over my face. â€Å"What?† he asked. â€Å"I don't think the show's over yet.† I sat back on the bed, then slid myself up so I was propped up against the pillows in full view. Watching him and his every reaction, I moved my hands up to my breasts, feeling them. But these were not the touches that came with a sensual undressing. These were caresses of a different sort. A more urgent sort. I want to see you in the throes of orgasm, Seth had written in his missive. I want to see your whole body writhing, your lips open as you drink in your own pleasure. Only yours, no one else's. Just you, completely given up to ecstasy. I stroked my breasts, cupping them, feeling their softness and curving shape. My fingers moved and stroked my nipples, teasing them further, moving in lazy circles. I ran my thumbs over them, reveling in their sensitivity. When my breasts were finally taut and aching, I let my hands travel down over my smooth and flat stomach, examining and lingering on every part until I reached my thighs. Parting them ever so slightly, I slipped two fingers between the waiting lips so I could stroke that throbbing knot of nerves, moaning without even realizing it. Something about Seth watching aroused me more than I'd expected. I was dripping with wetness, aching and scorching. I slid my fingers over and over that burning, swelling spot, stoking the rapidly growing need. Arching my body, hearing the soft cries escaping from me, all I could think about was Seth's eyes on me. Doing this for him, was in many ways, more genuine than actual sex with Bastien-turned-Seth had been. This was as intimate as he and I could ever be. It wasn't exactly the same as the honest communication we kept talking about, but in a way, I was opening myself to him after all. Exposing myself without inhibition. I kept expecting the succubus energy-need to pick up on this scam, but either the distance or the fact that I was doing this to myself continued to trick it. We'd found a loophole after all. As my fingers continued to rub between my lips, bringing me closer and closer to that crest, I moved my other hand down and thrust a couple of fingers inside of me. This elicited a moan of yearning, and I opened my thighs further, letting Seth get a full view. Faster and harder both sets of fingers worked, touching everything, building and building up that delicious pleasure until I felt like I couldn't take it anymore. Like I was going to burst. And then, I did. Sparks and lightning shot through my body, radiating from my core outward until every part of me tingled with life. I cried out again, loudly, my body writhing against the sheets as spasms racked my muscles. What had started as an ostentatious show had become something more. Doing this for Seth – with Seth – had reawakened something sleeping inside of me. I had lost control; my own body had taken over. When I finally calmed down, I lay back against the covers, my breathing shallow as I recovered myself. I could feel sweat all over me. And with that physical response, an emotional and almost spiritual one radiated through me as well. Like the experience had somehow lit a flame within me. One that hadn't died with the orgasm. One that had nearly gone cold once – long ago – but now shone fiercely. A moment later, I heard Seth stand up. Gingerly, he moved to my side, just barely sitting on the bed. We stared at each other, neither of us speaking, our eyes conveying all we needed to each other. He reached out a hand, like he might stroke my cheek, then pulled back. â€Å"I'm afraid to touch you,† he whispered. â€Å"Yeah. It might†¦might be wise to hold back on that for a little longer. Just in case it kicks in.† â€Å"I take back what I said earlier about the stripping. This was the best thing I've ever seen.† He crooked me a smile. â€Å"No, you're the best thing I've ever seen. Everything about you.† I smiled back. â€Å"We might have found a workaround.† â€Å"For you maybe. As it is, I'm, uh, feeling a little†¦uncomfortable right now. I'm glad you were able to get a release, at least.† I suddenly sat up, energized. â€Å"Well, why can't you?† His smile dropped. â€Å"What? Like in the bathroom?† â€Å"No. Right here.† â€Å"You're joking.† â€Å"No.† I could feel my lips turning into a mischievous smirk. â€Å"Fair is fair. Quid pro quo. I did it for you, now it's your turn.† â€Å"I†¦no. No. I can't do that.† â€Å"Sure you can. There's nothing to it.† â€Å"Yeah, but†¦Ã¢â‚¬  â€Å"No buts. You're the one going on about openness and sharing. â€Å" â€Å"Whoa. That's not even the same.† â€Å"It is.† I rolled over so that I was not quite in a pouncing position, but pretty close. I gave him a smoldering look. â€Å"How do you think I was able to do all that? I thought about you. I thought about you being over me while I spread my body for you. I opened up to you. I let you see everything. I wanted you to have that part of me. Nothing held back. And now I want to see the same.† I leaned close, starting to tug his shirt off. â€Å"I want to see you come. I want to see you give in to that desire. I want to see your face when you touch yourself and think about me.† â€Å"And they say I'm good with words.† He closed his eyes for a moment. â€Å"I can't believe you can have this effect on me.† I pulled his Spam shirt over his head. â€Å"I'm waiting.† Seth stared at me, then carefully and hesitantly began taking off his pants. He tossed them on the floor and moved on to his adorable flannel boxers. He paused there, clearly nervous, and then removed them in a quick motion before he could turn back. I looked him over admiringly, seeing him naked for the first time. As my gaze lingered between his legs, I had to work to keep a straight face. Bastien hadn't done him justice. â€Å"This is going to be hard,† he observed. â€Å"It already looks hard to me.† â€Å"Stop making jokes.† â€Å"Sorry. Just relax, that's the key.† I sat back away from him, putting some distance between us once again. â€Å"Drop the self-consciousness. Just give in to how you feel.† He nodded and took a deep breath. â€Å"Thanks, coach. Can you move over to your side – yeah. There. And then, the hand†¦yes, put it right there. Perfect.† He shook his head, an almost comic look of misery and eagerness on his face as his hand slowly moved down. â€Å"I need a good view of you to pull this off, I think, so I can keep my eyes off me. If I pay too much attention to what I'm doing, the absurdity will hit. â€Å" â€Å"Well then,† I said, getting comfortable. â€Å"Don't look down.†

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UK Retail - Case Study Example Appendix A illustrates the state of the international retail industry: Tesco's international expansion programs is not limited by its consumer businesses, they are aiming to launch extensive services and related markets into new markets because of two major motivations: establishing their leadership in these developing markets and maximizing existing capacities (Corporate Watch UK, 2004). Tesco, is a global leader in retailing that is based in Britain. Recent vertical and horizontal expansion of the company have now included in its portfolio agriculture, packing, merchandising and information technology (Tesco, 2006a). Next to only to Carrefour, it Europe's supermarket industry and is ranked eight in the global industry. Aside from its supermarket operations to has recently its retail interest expanded its retail interest to the convenience store industry. Among its outlets are Tesco Extra, Tesco superstores, Tesco Metro, Tesco Express and T&S (Corporate Watch UK, 2004). ... Table 1 details existing stores and projected openings for 2006-2007. It also is aiming to strengthen its market presence in the countries it is already in by increasing the number of stores in operation as well as increasing the volume of its products in the market (Johansson, 2001). . Tesco's overseas expansion is one of the major factors that have led to present growth trends. It has maintained its strategy of buying existing grocery chains instead of starting from scratch in new markets. This has allowed them to secure key locations and ease to the new market more easily (Corporate Watch UK, 2004). From current targets of Tesco, it expects to have to increase its stores by 26%, increasing its total number of stores to around 3,700 stores. Size and Formats Size of Stores is defined by the store format. The different categories of the store is part of the effort to capture various market segments and they may be located near each other and be considered as indirect competition of other category stores. Table 2 details the different store format and their respective sizing and selling areas. Tesco Extra stores first opened to the public in 1997 and carry the full range of products found in all Tesco stores. They are classified as hypermarkets. The first floor carries food products while the second floor caries non-food items. They are comparative in size and format with Wal-Mart Supercenters. An average of twenty Tesco Extra stores are opened annually (Tesco, 2006d). Tesco stores follow the traditional size and format of supermarkets and are the oldest format used by the company. It also the usual type of store opened overseas (Tesco, 2006a). Tesco Metro stores are less than

The Field Trip in Miami Essay Example | Topics and Well Written Essays - 1000 words

The Field Trip in Miami - Essay Example On the first day of our trip, we visited the Fruit and Spice Park. This is a very large tropical botanical garden located in Miami. The 37-acre park is a public facility under the full ownership and management of the Miami Dade County Park and Recreation Open Space. Indeed, a visit to this park was worthwhile because it had lots of benefits to us. Apart from experiencing the pleasant tropical climate at the garden, we got an ample opportunity to see a lot of plants that we had never seen before. These consisted of different varieties of spices, fruits, nuts, vegetables, herbs and a wide range of plant specimens. It was so interesting to visit the park because it has a large pool of plant species to enjoy viewing. Thus, by being active tourists, we had to see and learn much about the numerous species of bamboo, bananas, and mango that are showcased at the park. After enjoying the beauty of the Fruit and Spice Park, we spent the rest of the time sampling and having a taste of the variety of foods and drinks offered at the garden. Here, we ate a well-prepared meal of banana salsa that was served alongside chips, pumpkins, star food, guava, avocados, and jackfruits. This was a very sweet food that not only satisfied us but left us yearning for more. What pleased me most is that the food was prepared using the ingredients from the park thus becoming purely natural. Meanwhile, I was particularly amazed by the Miranda fruit that I tasted at the end of our trip. After hearing about it for so long, I just could not believe that the exotic berry could actually make me taste a sour food as sweet one for up to two hours after its consumption. After leaving the Fruit and Spice Park, we proceeded to Oolite Restaurant and Bar, Lincoln Road, Miami. Here, we had a chance to eat and drink a lot of foods and drinks as well as enjoying the beauty of this great facility.

The English Reformation Essay Example | Topics and Well Written Essays - 500 words

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How do managers measure organizational Effectiveness - Term Paper Example There have been various attempts to explain organizational effectiveness; some believe it to be completely financial based, others explain it completely based on profits. The next section is a research that tries to explain what organizational effectiveness really is and what role managers play in this. Organizational effectiveness is one of the most essential and most elusive research subjects since the birth of organizational theory. There has been no one explanation for this. There is no ready literature on measures of organizational effectiveness; however there have been four key models that have been mentioned in the literature to measure organization performance. The models approaches are quite different in a few ways however they all aim at one common goal – organization effectiveness. To briefly touch upon these models, the first model focused on production which was considered as the companies output, leadership which highlighted the degree of influence and personal ability, inter - personal conflicts highlighted the possible misunderstanding between team members and team supervisors and lastly commitment which refers to the amount of attachment to the organization. The second model was mainly developed as a management tool. It focused on interrelated organizational processes. This approach used organizational survival and maximized returns as key to effectiveness. Also along with these variables it utilized a few other minor variables which were equally important to run the business smoothly and effectively. These variables were sensitivity to change, promotions, flexibility, adaptability, efficiency, transformations, etc. (Helms, 2008). The third model was a little different and believed that there were six indicators to organizational effectiveness. These indicators varied from internal communications, involvement of board of directors, volunteer involvements, political factors, management

Explain Marie Winn's ideas about how television functions, and show Essay

Explain Marie Winn's ideas about how television functions, and show how her ideas apply to other forms of mass media - Essay Example First there were newspapers. They informed people of the state of affairs and public believed them. Publishers sold scandals and negative emotions and public got depended. Papers served as a wonderful way out of an awkward situation. If you did not want to communicate with people in a public place, you read a newspaper. A father, afraid of communication with his children, could hide himself behind a morning paper during breakfast and then escape in reading evening papers. Today papers and magazines serve as a source of propaganda of way of lives. Reading certain magazines you feel belonging to certain groups. Radio helps you to passively entertain yourself both in free time and on your way to work. Television and internet absorb most of time and attention of millions of people in the world. A TV-set is an obligatory thing in every house. People get surprised learning that you do not watch TV. Internet is a new plague of the humanity. Seemingly inoffensive and enormously useful at fir st sight, it creates a generation of online people, afraid of living communication and unable to perceive a concrete person who could become a partner. Marie Winn in her book The Plug-In Drug: Television, Children and the Family provides keen observations of the impact of television on the life of modern people and families. It is a well known fact that a family is the smallest cell of the society. It is here that we start our life journey, learning how to deal with the world and people. Certainly, the problem of parents and children has always existed. Even Juliet Capulet found it difficult to explain herself with her mother and communicated with her parents mostly through the nurse. Yet, the Capulets did have a chance to inform their offspring about their demands, hopes and displeasure. The family also had some rituals uniting them into a family, different from the rest families in Verona. Modern children often learn their parents’

Hamlet Lecture 1 Essay Example | Topics and Well Written Essays - 1750 words

Hamlet Lecture 1 - Essay Example The watchmen sense that there is something of significance in the appearance of the ghost of the late king; therefore they inform Hamlet about it, who immediately decides to find out the purpose of the appearance of his father’s ghost. Claudius announces his marriage to the Queen within two months of Hamlet’s father’s death. He justifies the urgency of his decision by saying that the kingdom is in a war-like state; therefore, he had to take this step in the interest of his people, and to send a strong message to the enemy that they are still strong. â€Å"With mirth in funeral, and with dirge in marriage.† (Shakespeare 1; ii, 12) The language in Hamlet, as in other plays by Shakespeare is used as a tool to create dramatic effects. Symbolism and imagery play a very important role in narrating the dramatic effects and characterization. The purpose of speech or dialogue is not only to express inner feelings but to draw a live and vivid picture in the minds of the readers or the audience about the characters and the plot of the play. When Hamlet awaits the ghost of his father, he proclaims: â€Å"The air bites shrewdly; it is very cold.† (1; iv, 1) The ghost commands him to take revenge of his murder from his uncle, Claudius the king. He also instructs Hamlet not to harm his mother, and let Fate deal with her. Hamlet promises the ghost of his father: â€Å"Haste me to know't, that I, with wings as swift / As meditation or the thoughts of love, / May sweep to my revenge.† (35) This is a very important pledge of Hamlet upon which his life and the purpose of his life depend. Unfortunately, failure to fulfil his promise on time will lead to his tragic death. As the play shall progress, we shall see that there is an internal war being waged in the mind and soul of Hamlet. However, he could not decide how to go about things and delays the matter. During the course of procrastination, he delves deeper and deeper into madness. His madness has actually resulted from rage, disbelief, sorrow, melancholy, and his inability to take action. He wants to die and put an end to his life; he realizes that Fate has put him in a very complex situation by assigning the responsibility of avenging his father. He finds it extremely difficult to decide the course of his actions and keeps on delaying his decision. His soliloquies are a manifestation of his melancholy, despair and philosophical nature. â€Å"O cursed spite, / That ever I was born to set it right!† (1; v, 209-210) The dialogues between the King, the Queen and Hamlet are full of under tones. Hamlet is sarcastic- â€Å"Good mother† means just the opposite. He is the only person who has not recovered from the death of this father. The grief is obvious in his appearance. The concept of â€Å"play within play† is introduced in this scene; as Hamlet says to his mother: â€Å"These indeed seem, / For these are actions that a man might play.† (1; ii, 86-87) Hamlet is gradually descending in the state of madness. He has started doubting his relationship with Ophelia and even his friends sense that he has lately not been himself. â€Å"And yet to me what is this quintessence/ of dust? Man delights not me—no, nor woman neither.† (II;ii, 312-313). Hamlet is also highly aware of the voice of conscience. He plans to stage a play depicting the characters of his mother, his father and Claudius. He does so in order to awaken the conscience of his uncle and is quite successful in it because Claudius gets deeply

Nursing Students Essay Example | Topics and Well Written Essays - 750 words

Nursing Students - Essay Example The title could do a little revision though to make it appear scholarly. In its abstract, it has identified a total sample population of n=197 whereby only 6% creates the sample size. The sample is too small to reflect the subject population thereby the confidence level is heighten too actively. The chances of error are so remote here. But it has been noted that in determining a sample size for a given level of accuracy, the worst case of 50% should be used. Type of sampling employed and how the respondents were selected among the school's total population of 424 undergraduate students was derived. Such information vital to the methods used in the analysis of data was not identified in the abstract nor in its methodology. Kidder relates that, "a critical portion of a research study is the portion on the instruments used to gather data". Validity of the conclusion derived out of the statistical instruments depends greatly on its characteristics. Therefore the questionnaire used as the main tool in this research should be attached in the bibliography subject to further studies and referencing. Reliability which refers to the extent of an instrument's consistency should be able to elicit the same response when applied to respondents. Since such document is not identified nor presented in this article, its validity and reliability cannot be substantiated and investigated. Over-all evaluation of the instrument cannot be conducted at this moment. The quantitative results of data gathered does not clearly correlate with the problem encountered and stated in the sense that it has focused on the end result of treatment intervention as its instrumentation rather than on the smoking patterns and behavior itself and the possible effects of implementing a certain kind of treatment intervention. Works Cited Kidder, Louise H.1981). "Research Methods in Social Relations.". New York: Hold, Rinehart and Winston. Works Cited Marx,Karl. "Capitalism and Alienation" 2004.Faculty.fostburg. edu. 07 Mar,

Political Philosophy and Major Theme Machiavelli Essay Example for Free

Political Philosophy and Major Theme Machiavelli Essay Machiavelli had a true and abiding love for Florence. He wanted to make Florence great and also find himself a job, as he lost his when the Medici family came into power. He dedicated his book on political science, The Prince, to Lorenzo Medici in the hopes that Lorenzo would be impressed and offer him a job. However, Lorenzo ignored the book and Machiavelli. The Prince is a didactic examination of political power, how to achieve it, maintain it, and expand it. Machiavelli does not take into consideration what is morally right, or amoral, only what is useful and useless. The book is more like a technical manual, and technical manuals only state the facts. The book defines what turns a mere man into a great ruler and what turns a great ruler into a mere man. Machiavelli’s book of politics is unique because it is so realistic. He does not place man in a false utopia where man live in eternal peace and harmony, everyone doing good to one another for the good of the public whole. Rather, he writes a manual where there are political conflicts and tensions. Machiavelli writes how a prince should deal with these conflicts and tensions. He condones cruelty, punishment, religion, rewards, compassion, and integrity to achieve power. Whatever means to achieve the end. QUESTIONS 2. Discuss Machiavelli’s â€Å"heroes†. Select one and discuss the traits that he finds admirable in that person. Be specific. Machiavelli’s heroes are Moses, Cyrus, Romulus and Theseus. They all formed civilizations. When Machiavelli talks about his heroes he is speaking of how to acquire a princedom. As Isiah Berlin says in his essay, Machiavelli admired these heroes because they were high-minded, tough, and tough enough to use brutality against the few, to help the public good of the princedom. He especially admired Moses because he was worthy to talk to God. Moses had the opportunity to create a new civilization with the Israelites because they were being treated badly by the Pharaoh . Therefore, Moses took advantage of their discontent with their new master and led them in a revolt. Eventually creating a new civilization. Machiavelli admired Moses because of his strength of character that carried him through the difficult trouble of gaining power. 3. Discuss Machiavelli’s opinions on the uses of cruelty to accomplish certain goals. The Prince is about the ways to achieve political power, with no preference for the way in which it is achieved. Machiavelli does not advocate unnecessary cruelty. His book is only about how to obtain and keep a princedom. Machiavelli believes that cruelty is sometimes necessary to acquire or/and keep political power. Machiavelli recognized that in the time he lived a political ruler would have to use cruelty, he writes, â€Å"The new prince, above all princes, cannot possibly avoid the name of cruelty†. He also states in Chapter VIII that cruelty may be useful sometimes in achieving certain ends, but it would bring no glory. 1. What does Machiavelli think of â€Å"the people† in the course of human history? Machiavelli refers to â€Å"the people† as â€Å"the masses†, lots of times. He realizes that â€Å"the people† are a dominant force in politics, whether it is a democracy or a republic. When a princedom is added to an already established kingdom, he writes that the customs must be the same between the two and that no new taxes or laws should be enacted. To do so would cause the people to revolt and the recently acquired princedom would be in jeopardy. Machiavelli realizes a prince cannot keep political power if his people hate him. A hostile population may abandon him or turn against him when hostile noble attack, then the prince will lose the kingdom. Machievelli also believed that a prince may â€Å" make an example of a very few† be execution of severe punishment, but that letting the population bring disorder among themselves was bad for the whole community. Therefore, Machiavelli was wary of â€Å"mob rule†. Machiavelli realizes that â€Å"the people† have to be relatively happy for a princedom to be healthy. 4. In general, what is Machiavelli telling his â€Å"Prince† with regard to the use of power? Machiavelli’s entire book is about power. How to achieve a princedom with power. Power over â€Å"the people† with cruelty (or punishment); power over other princes with deceit or a bigger army or powerful friends; power over the army with cruelty and/or money. He speaks of control over captured cities by dividing them into factions, disarming the people or forming hostilities among the people. All of these things achieve power. A prince must also be more powerful than his counselors, listening and gleaning knowledge but making his own decisions; because a weak prince will do whatever his counselors tell him and then his counselors will take over the princedom. EVALUATION OF BOOK I think this is one of the most interesting books I’ve read in a while. It’s dry, realistic, terse, and to the point. It’s also very easy to read (I was pleasantly surprised). All of the historical connotations are especially interesting. I read that Hitler, Mussolini, and Lenin found Machiavelli valuable reading; I would like to delve more into that one!! In the Renaissance religion and learning were beginning to be thought of as separate and Machiavelli was a man of his time. His book was entirely didactic and did not have a trace of religion. He spoke of cruelty and deceit in matter-of-fact tones and kept his book strictly a manual, with no judgements. In our modern time, we have to discern his book in the same manner that he wrote it. If we do not, we will not understand what he was writing.

Six Simple Ways to Go Green Essay Example for Free

Six Simple Ways to Go Green Essay These days it seems you can`t even go two hours without seeing or hearing something about being green, whether it`s an advertisement for an Earth-friendly product, news about an environmentally-sound investment, a report about a business or community that`s taking steps to be more eco-conscious, or just general advice on how to save the planet. Going green isn`t just the latest trend though; it`s something we all must do to conserve resources, combat climate change, and preserve our planet for generations to come. Here are six easy-but essential-things you can do to green your lifestyle (and save a little cash too:) 1. Green Clean Your House: Conventional household cleaners and bug-killers can contain as many as 200 industrial compounds, pollutants, and other chemicals. These harmful toxins are dangerous for you, your children and your animal companions, as well as harmful to the environment. Chemicals in cleaning products have even been implicated in Parkinson`s disease, infertility, brain damage, cancer, and other health problems. It`s safer and greener to buy only organic, all-natural cleaning products. Many natural, cruelty-free cleaning products are available in many supermarkets and drugstores. Thrifty cleaners can also make their own green cleaning supplies with everyday, inexpensive ingredients like baking soda, borax, cornstarch, and white distilled vinegar, which is effective for killing bacteria and germs. 2. Garden with a Green Thumb: Americans use approximately 80 million pounds of pesticides in their gardens every year. Like chemical-cleaners, pesticides and synthetic fertilizers pose a threat to you and your loved ones, and the environment in general. Instead, use compost and plant native plants, which have adapted to the environment and require less water and attention, in your garden. By composting you can recycle your yard and kitchen wastes (even your dinner scraps) to fertilize your own garden. This saves you time and money and helps the environment. 3. Don`t Be in the Dark About Green Light Bulbs: Compact fluorescent light bulbs are energy-efficient, long-lasting, and cost-effective. They can be purchased at most hardware stores and cost under $4 each. If you use compact fluorescent light bulbs instead of standard incandescent ones, you`ll not only help save the environment, but you`ll also save around $30 on your electric bill. 4. Curb Consumerism: Do you really need more knick-knacks, techno-toys, fad fashions, and stuff that will ultimately land in a landfill? Cutting back on unnecessary purchases not only helps save landfill space (and all the materials needed to make the must-have merchandise), but it will also save you money for more important things. When you do go shopping bring along reusable canvas shopping bags. Every year Americans use up to 100 billion plastic bags, which equals about 12 million barrels of oil. Some stores offer a small discount if you bring your own bag, and by not using a non-biodegradable, petroleum-based plastic bag, you can help save wildlife. Thousands of animals choke to death on plastic bags, thinking they are food. 5. Eat Green: If you want to be green, it`s important to eat green-vegetarian, that is. Meatless Mondays or Thursdays, or what have you, are a great start. The less meat you eat the more you help to reduce greenhouse gas emissions, curb pollution, and conserve water, land, fossil fuels, and other resources. Consider this: *A United Nations report revealed that the meat, egg, and dairy industries are responsible for more greenhouse gasses than all the cars, SUVs, ships, tractor trailers, trains, and jumbo jets combined. According to the Live Earth concert handbook, refusing meat is the single most effective thing you can do to reduce your carbon footprint. Researchers with the University of Chicago even report that going vegan is 50% more effective in stopping global warming than switching to a hybrid car. *The Environmental Protection Agency (EPA) says that run-off from factory farms pollutes our waterways more than all other industrial sources combined. The EPA also reports that about 80 percent of ammonia emissions in America come from animal waste. *It takes more than 4,000 gallons of water per day to produce food for a meat-eater; only 300 gallons of water a day are needed to produce food for a vegan. Nearly 80 percent of the agricultural land in the U.S. is used to raise animals for food. E: The Environmental Magazine has reported that more than one-third of all fossil fuels produced in the U.S. are used to raise animals for food. 6. Buy Local: If you buy locally-grown fruits and veggies rather than produce that has been trucked across the country, you can help conserve fossil fuels and reduce the amount of carbon dioxide, sulfur dioxide, and other harmful pollutants released into the air. Buying produce from a local farmer`s market also supports local farmers, who often do not use as many harmful chemicals and waxes on the food they grow. You can usually find your local produce cheaper at the Farmer`s Market than in the grocery store.

Examining Practice Of Price Discrimination Economics Essay

Examining Practice Of Price Discrimination Economics Essay Perfect competition is the most efficient market structure because, in the long run, each firm in the market will be producing at its minimum average cost, or per-unit. This means that consumers get desired goods and services at the lowest possible prices, and also that the firms are economizing on societys scarce resources to the greatest extent possible. What is the difference between the concepts of diseconomies of scale, and the law of diminishing return? (4 marks) Law of diminishing return occurs in the short-run when one factor is fixed. If the variable factor of production is increased, there comes a point where it will become less productive and therefore there will eventually be a decreasing marginal and then average product. When long-run average total cost rises as output increases, there are said to be diseconomies of scale. a. Sally owns a ceiling fan company. Last year, she sold 1000 ceiling fans at $50 each, and each fan cost her $20. Before going into the ceiling fan business, she worked as a fan-dancer at $25,000 a year. She used her own money to buy the fans by withdrawing the money from her savings account where it was earning five percent annual interest. Calculate Sallys economic profit and her accounting profit. Should Sally continue with her ceiling fan business? Explain. (6 marks) If her economic profit is at least zero, Sally should stay in business. Her TR = $50,000 and her total accounting cost is $20,000, for an accounting profit of $30,000. She forgoes interest on savings of $20,000 (.05) = $1,000 as well as forgone earnings of $25,000. This leaves $4,000 in economic profit, so she should stay in business. Bob Edwards owns a bagel shop. Bob hires an economist who assesses the shape of the bagel shops average total cost (ATC) curve as a function of the number of bagels produced. The results indicate a U-shaped average total cost curve. Bobs economist explains that ATC is U-shaped for two reasons. The first reason is the existence of diminishing marginal product, which causes it to rise. What is the second reason? Explain your answer. Assume that the marginal cost curve is linear. (4 marks) Average fixed cost always declines as output rises because fixed cost is being spread over a larger number of units, thus causing the average total cost curve to fall. a. Provide two circumstances in which monopoly may offer efficiency advantages over competition. (4 marks) A monopolist might be better positioned to exploit economies of scale leasing to an equilibrium which gives a higher output and a lower price than under competitive conditions. As firms are able to earn abnormal profits in the long run there may be a faster rate of technological development that will reduce costs and produce better quality products for consumers. This is because the monopolist will invest profits into research and development to promote dynamic efficiency. Explain the practice of tying and discuss why it is controversial. (5 marks) Tying is the practice of bundling goods for sale. It is controversial because it is perceived as a tool for expanding the market power of firms by forcing consumers to purchase additional products. However, economists are skeptical that a buyers willingness to pay increases just because to products are bundled together. In other words, simply bundling two products together doesnt necessarily add any value. It is more accurately believed to be a form of price discrimination. Describe the source of tension between cooperation and self-interest in a market characterized by oligopoly. Use an example of an actual cartel arrangement to demonstrate why this tension creates instability in cartels. (5 marks) The source of the tension exists because total profits are maximized when oligopolists cooperate on price and quantity by operating as a monopolist. However, individual profits can be gained by individuals cheating on their cooperative agreement. This is why cooperative agreements among members of a cartel are inherently unstable. a. If the average total cost curve is falling, what is necessarily true of the marginal cost curve? If the average total cost curve is rising, what is necessarily true of the marginal cost curve? (5 marks) When average total cost curve is falling it is necessarily above the marginal cost curve. If the average total cost curve is rising, it is necessarily below the marginal cost curve. Describe the difference between average revenue and marginal revenue. Why are both of these revenue measures important to a profit-maximizing firm? (5 marks) Average revenue is total revenue divided by the amount of output. Marginal revenue is the change in total revenue from the sale of each additional unit of output. Marginal revenue is used to determine the profit-maximizing level of production and average revenue is used to help determine the level of profits. Describe the process by which the market for capital and the market for land reach equilibrium. As part of your description, elaborate on the role of the stock of the resource versus the flow of services from the resource. (6 marks) Equilibrium in the markets for land and capital are governed by the value of marginal product for these factors relative to their supply. One difference between these markets and the market for labor is the distinction between rental value (flow) and purchase price (stock). This difference is reconciled by noting that in efficient markets, the purchase price should reflect the value of the stream of services provided by the land or capital (or the sum of rental values appropriately discounted). a. List and explain two conditions necessary for firms to be able to successfully practice price discrimination. (2 marks) Differences in price elasticity of demand between markets: There must be a different price elasticity of demand from each group of consumers. The firm is then able to charge a higher price to the group with a more price inelastic demand and a relatively lower price to the group with a more elastic demand. By adopting such a strategy, the firm can increase its total revenue and profits. To profit maximize, the firm will seek to set marginal revenue = to marginal cost in each separate (segmented) market. Barriers to prevent consumers switching from one supplier to another: The firm must be able to prevent market seepage or consumer switching defined as a process whereby consumers who have purchased a good or service at a lower price are able to re-sell it to those consumers who would have normally paid the expensive price. This can be done in a number of ways, and is probably easier to achieve with the provision of a unique service such as a haircut rather than with the exchange of tangible goods. Seepage might be prevented by selling a product to consumers at unique and different points in time for example with the use of time specific airline tickets that cannot be resold under any circumstances. Explain how each of the following industries practices price discrimination: (6 marks) restaurant Restaurants sometimes have childrens menus. It can be profitable if adults who come to restaurants with children are, on the average, more sensitive to prices on menus than adults who come to restaurants without children. Children often do not value restaurant food and service, and often waste a large part of their food. Parents know this and do not want to pay a lot for their childs meal. If restaurants treat children like adults, the restaurants may lose customers as families switch to fast-food restaurants. If this explanation is correct, then restaurants price discriminate. airline Airlines charge different prices for seats on the same plane, depending on when the ticket was purchased, how long the traveler will be staying at the destination, etc. Of course, the cost of operating the plane is independent of these variables. Hairdresser A hairdresser may charge a lower price to children than to adults. The reason they do this is that they believe children to have a differing elasticity of demand to adults. In other words, the price needed to maximize revenue from children is not the same as the price needed to maximize revenue from adults. By charging different prices they will maximize revenue from both groups Calculate the total revenue without price discrimination as well as with price discrimination, and complete the table with your calculations. (4 marks) Price Qd TR TR (with perfect price discrimination) 30 0 22 10 220 220 14 16 224 304 10 24 240 464 7 38 266 562 Briefly describe the characteristics of each of the following market types. Give an example of each market type. (8 marks) pure competition The goods being offered for sale must all be the same. The buyers and sellers must be so numerous that no single buyer or seller influences the market price. Buyers and sellers are price takers. An example would be the wheat market. Monopoly A monopoly is a market in which there is only one seller and the seller sets the price of the product, given the demand curve for that product. An example would be a local cable television company. Oligopoly An oligopoly is a market in which there are only a few sellers, and the sellers do not always compete aggressively. An example would be airline routes. monopolistic competition Monopolistic competition is a market containing many sellers offering slightly different products. Because the products are not the same, sellers have some ability to set price. An example would be the software industry. Use the graph below to explain why a profit-maximizing monopolistically competitive firm must operate at excess capacity. Why is a perfectly competitive firm not subject to the same constraint? (6 marks) Competitive firms do not face downward-sloping demand. The graph shows the firm choosing a level of production in which the intersection of marginal revenue and marginal cost occurs at an output level where average total cost is decreasing. This profit-maximizing output level is less than the efficient scale (minimum of average total cost) and therefore the firm is said to be operating at excess capacity. If the monopolist depicted in the graph below sets a price of $10 and sells 100 units, the corresponding marginal revenue is $5 and marginal cost $3. What recommendation regarding price and quantity would you give this monopolist? Explain your answer. (6 marks) Since MR exceeds MC, recommend an increase in output. Greater sales will require a price reduction. So reduce P below $10 and increase Q above 100. The marketing division of a firm has measured demand for its product and reports that it is Q = 24 P, where Q is units and P is price per unit in dollars. The cost is given in the table below. Complete the table and determine the profit-maximizing level of output for this firm. (6 marks) As indicated in the table below, the optimal output is Q = 5, where MR = MC = 5.80. Output Total Cost Price Revenue Profit 0 10 24 0 -10 1 18 22 22 4 2 20 20 40 20 3 22 18 54 32 4 25 16 64 30 5 29 14 70 41 6 34 12 72 38 7 40 10 70 30 8 48 8 64 16 Define the following terms and explain their importance to the study of economics. (9 marks) barriers to entry Barriers to entry make it difficult or impossible for other firms to enter an industry, thus allowing monopoly to continue to exist. Some examples of barriers include legal restriction on entry, patents, control of scarce resources, large sunk costs, technical superiority, and economies of scale. Patent A patent is a government-granted legal monopoly given to the inventor of a new product or process. During the life of the patent, the firm has a protected monopoly position. Thus, it serves as a barrier to entry. natural monopoly A natural monopoly is an industry in which advantages of large-scale production make it possible for a single firm to produce the entire output of the market at lower average cost than a number of firms each producing a smaller quantity. Most natural monopolies are regulated utilities.