Amazon.com Case Study Essay

1-2 Amazon Discussion Questions 1. On a scale of â€Å"1† (Very Poor) to â€Å"5† (Excellent), how would you rate Jeff Bezos as an entrepreneur? How would you rate him as an operating manager? Support your rating from case specifics. I would rate Jeff Bezos 10 as an entrepreneur, and 7 as an operating manager. On one hand, he identified book retailing as an industry segment that could exploit the power of emerging Internet technologies and found the Amazon.com, which enjoyed several years of tremendous growth, from an online bookstore into an online superstore, expanding the online business from retailing to auctions and marketplaces. He propelled the company through the dot com crash by partnering with traditional retailers and on to being a highly profitable online retailer. On the other hand, in order to support its rapidly growing and increasingly complex business, he invested heavily to develop state-of-art digital business infrastructure and operations which could provide the best-in-class retailing, fulfillment, and customer service capabilities, but built with rapid growth in mind, the distribution infrastructure provided roughly 70% to 80% overcapacity in late 1999. In early 2001, the company faced tremendous pressures from Wall Street and the company’s shareholders to achieve profitability. From 1997 to 2000, the Gross margin increased from 29 million to 655 million. However, the operating expenses also increased rapidly, from 61 million to 1519 million! The company simply could not make profit! 2. Trace the evolution of the Amazon.com business from the company’s launch in 1995 to the dot.com collapse in 2000. How did the company’s strategy change over time? How did IT capabilities evolve? What value did it deliver to all stakeholders? From its online bookstore launch in July 1995 till it went public in May 1997, the company located itself as an online retail bookstore, focused on redefining and enhancing the online shopping experience, including browsing, searching, personalized store layout and recommendations, shipping carts, 1-Click shopping, wish lists and greeting cards. Beginning in 1998, the company began aggressively expanding into new product categories and into international markets, becoming an online superstore selling a wide variety of products in over 160 different countries. During 1999, the company began exploring new business models including auctions and marketplaces. For these new businesses, the company provided software and services but did not assume control of inventory. As such, it played the role of an agent, not a retailer. During early 2000, the company expanded its marketplace business model through a series of equity partnerships with leading online retailers. How did the company’s strategy change over time? Within the first six years of its inception, Amazon transformed itself from an online bookstore into an online superstore selling a wide variety of products both nationally and internationally. Amazon set out with the strategy of becoming â€Å"Earth’s Biggest Bookstore† and to support its rapid growth it aligned its business model to â€Å"get big fast.† How did IT capabilities evolve: Capabilities enable a company to execute its current strategy and also provide a platform for future growth. Amazon used its IT capability as a powerful tool to enable operational cost savings, revenue growth opportunities, drive asset efficiencies and to create for itself a sustainable advantage. Stage I: Using IT to drive cost savings: Amazon used IT to control and bring down its raising fulfillment costs by computerizing and interconnecting even the notoriously labor-intensive activities like picking and packaging. Stage II: Using IT to drive revenue growth: Amazon used IT to create business intelligence to get to know its customers, markets and competition better and leveraged this capability to increase its revenues by attracting more customers and also by increasing the per customer purchase value. Stage III: Amazon created for itself a unique asset base comprising of its brand, customer relationships, the technical and fulfillment infrastructure, and leveraged it to create for itself a capability that could not be easily imitated by its competitors (online and traditional) or new entrants. Stage IV: Using IT to create sustainable advantage: Amazon’s digital business infrastructure, which linked its customer facing processes to its backend processes, helped it create a sustainable advantage for itself which served as an entry barriers for competition. The IT enabled commerce platform that Amazon built for itself is the key to its success. The value it delivered to all shareholders is its brand, customer relationships, technology, infrastructure, financial strength, people, and leadership in the dot com industry At the heart of Amazon’s value proposition is the fact that it leveraged its existing IT system and transformed it into a commerce platform, and this allowed Amazon to pursue new IT enabled strategic growth initiatives. In this process Amazon created value for all its stakeholders. Customers: Amazon’s sophisticated browsing experience with enhanced search capabilities, wish list, recommendations, shopping carts, one click shopping, personalized consumers shopping experience. Industry: Amazon’s business concept not only helped Amazon grow, rather it developed a value network for all the industry participants. Amazon’s  adoption of digital business capabilities compelled the retail industry to adopt and grow, or at least consider the new business model. Shareholders: In the early years, since Amazon had fewer physical assets, its asset turnover was extremely high. As Amazon.com began investing in its IT infrastructure and distribution network it increased its asset base and therefore had to look for new avenues to increase its revenues and to fuel its evolving business model. 3. Do you degree with the decision to pursue the Toy’s â€Å"R† Us deal? Support your decision with case specifics. Why did Amazon.com do the deal? Should Amazon.com do more deals like this? What impact does the Toys â€Å"R† Us deal have on the Amazon.com business model in early 2000? I agree with the decision to pursue the Toy’s â€Å"R† Us deal. Amazon.com found that its digital business infrastructure was a proprietary asset that would provide sustainable advantage, while supply chain, inventory management, and order fulfillment processes were difficult to efficiently scale across a diverse range of products. The dot-com stock market crash exacerbated the company’s problems and, by mid-2000, many of its online retail partners had declared, or were heading toward, bankruptcy. This caused Amazon.com executives to reevaluate the company’s business model. Rather than partner with dot-com retailers, attention shifted to traditional retailers that wished to develop online retailing capabilities and to upgrade their traditional distribution and fulfillment capabilities to enable the end-to-end visibility and speed required when doing business online. They should do more deals like this. The Toy’s â€Å"R† Us deal enabled the company to explore a new business model as a logistics services provider (Toy’s â€Å" R† Us would maintain control of product sourcing and marketing, as well as ownership of inventory) as it simultaneously expanded into a new market (traditional retailers) with its existing online retail product. 4. Consider the challenges facing the company. As a member of the Amazon.com board of directors in 2001, what actions would you take? Two of the biggest challenges that Amazon faced in early 2001 were whether it’s new â€Å"infrastructure services† model could develop into a competitive advantage that would be difficult to imitate by the competition and how to guard itself from increasing competition from traditional retailers. One way to deal with competitive threats from traditional retailers is to build an alliance with them. Amazon should continue to expand in the traditional retail market by attracting more retailers to sell to their products using its commerce platform. Teaming up with traditional retailers would require a delicate balance as it is important that this alliance between Amazon and its retail customers represents a win-win scenario. This will help Amazon use its fixed cost distribution network to capacity thereby increasing its benefits of scalability. Further it would allow Amazon to leverage its capabilities, increase revenues and develop its commerce platform into a strategic advantage that would be hard to imitate by new entrants or by traditional retailers.

Dialogue Between Plato and Aristotle Essay

Pluto: No, listen. What I am saying is that the environment or form that we live in is full of unevenness, imperfection and impurity this due to the fact that this form is merely a copy of the ideal world that one would understand once they rise above our physical environment and grasp it intellectually. Aristotle: I understand you just fine but I disagree with you. I agree that our world is an imperfect world but I object to the notion that it is not real or that there is another invisible form out there from which it is cloned. I find that preposterous, everything is right here on earth, physically. Pluto: No. What we see on earth ‘physically’ as you say are just mimics or artificial replicas of the real thing only with a lot of imperfections. This is just an illusion of the real thing. Aristotle: How can that be when our natural world is real and physical? Let me explain it to you clearly, our world, this world is made up of many forms. Sure, they may not be ideal, pure or perfect but our senses identify with them. Pluto: Well, our senses identify with them because they are copies of the perfect form and we have knowledge of them. Let me explain it to you. Knowledge must have as its object that which is openly real as juxtaposed with that which is an appearance only, that which is fully real must be fixed, permanent and unchanging- in the realm of being as opposed to that which is in the realm of physical. That is why you call these world ‘physical’ when it is just a perception from the true ideal form. Aristotle: That is absurd! If experience has shown us anything is that individual substances exist and are real, being predicated of the substance and that an individual is not produced by some idea or model the actually exist! Pluto: Now you have joined people inexperienced in the theory of forms. Captives in a cave, bound to the wall with no likelihood of turning your heads. With fire burning behind you, you can only see the wall of the cave and the shadows of the puppets placed between you and the fire. You are incapable to fathom that the shadows you see and the echoes you hear are a reflection of real objects, behind you. This world that is available to our senses exists only as a reflection of the real world. Aristotle: Here is where I differ to you completely! !An individual is not formed from the perception of another’s  mind but from an individual who through germ or seed was able to reproduce another one hence, the seed in the individual would be in potency form because of its capacity to become an individual in future. Every individual is a compound of matter and form, not a mirror or perception of another from another form. Pluto: That is just how easy it is to mistake appearance for reality, just like the captives in the cave experience, they easily refer to the shadows using the names of the real objects that the shadows reflect. This just shows that knowledge is only a reflection of the real ideas in our minds. What is seen on the earth is an imitation of the real thing. The captives, by looking at the shadows may learn what an item is but this does not enable them to claim that it refers to an object, which they have seen. Likewise, we need the physical objects in order to enable us acquire concepts. Aristotle: So your idea is that we live in an imagined world and that is copied from an ideal world and that the physical items and entities we encounter on our day to day activities and with which our senses identify with are merely there for us to acquire concepts? Pluto: Yes. Exactly! Aristotle: You are not serious! You do realize that the possibility of error forces the mind to determine the truth validity of a given statement. Meaning the intellect must have adequate reasons, which can ensure the proposed judgment conforms to reality. These are the foundation of perfect knowledge, knowledge through causes. Not that we originate from some made up form that we cannot access, but that we originate from an individual. Matter is the indeterminate element, which is unchanging, and form is the force and power shaping and developing the individual. That is a structure of two statements leading to correct reasoning. Pluto: So you object to my whole idea? Aristotle: Completely! It lacks a foundation and crumbles upon itself. Your own argument argues that there is need for physical objects to enable us acquire concepts but your idea is based on an unseen form that cannot be confirmed physically. Pluto: We could argue about it for hours. It’s a stalemate. Aristotle: Seems we have found an impasse, but I win!

Marijuana Debate

Erica Del Vigna Coms 2 Negative Outline Proposition: The state of California should legalize marijuana. I. Introduction Thesis: Though I agree that marijuana should be put into a controlled environment, I believe it should not be legalized due to its poor health attributes, and its negative influence towards the youth and drug users. Preview: I will be explaining today why the affirmatives plan does will not work as a sufficient plan in California. I will start by refuting his claims that marijuana is not a gateway drug. I will also explain the future harm that legalizing this drug could do to the youth of our state.Finally, I will connect the link on drug users to criminals. Overall this drug does not benefit our future generations socially or for their health. According to Scripps Alcohol and Treatment Center in California, â€Å"we have yet to see a patient come through here who doesn’t attribute his addiction to having started with marijuana as a gateway drug†. II. Body A. Ills and significance refutation 1. The affirmative claims that marijuana is not a gateway drug, which is the farthest from the truth. Most people who are in a treatment center started off by occasionally using marijuana.As I stated in my previous quote from the Scripps alcohol center, most addicts blame their addiction habits to starting with a gateway drug like marijuana or alcohol. The clinician who was interviewed stated that society realizes the real dangers of marijuana as a gateway drug. Even though in 1996, medical marijuana was passed by California voters with Proposition 215 by a 56 % passing rate; in 2010, Proposition 19 failed because California voters did not want to legalize marijuana, as stated in the Christian Science Monitor dated May 2012. . The affirmative argues that law enforcement should spend their days fighting something more important than drug users. I strongly disagree with this because of the evidence showing that drug users lead to harsher crimes . Allowing people to use drugs is telling the youth of California that it is okay to smoke weed. This could potentially turn otherwise respectable children into drug using, criminal adults. In the article by the American Academy of Pediatrics, â€Å"Legalization of Marijuana: Potential impact on youth† in 2004, the doctors state that legalization of marijuana would have a negative effect on youth because in would decrease the adolescents’ perceptions of risk and increase their exposure to the drug. In comparison to a Dutch study from 1984 to 1992, decriminalization increases marijuana use by adolescents because making marijuana legal makes it available. American manufacturers of alcohol and tobacco market their products to young people and marijuana would be the same.Marketing research shows that if only 1% of 15-19 year old Americans began using marijuana, there would be approximately 190,000 new users. B. Cure refutation 1. —The affirmative’s plan will not work for multiple reasons. Although some may use the drug for health benefits, it will cause more problems to society than help. The Office of National Drug Control Policy director, John Walters states that Marijuana damages the brain, heart, lungs, immune system and contains cancer-causing compounds. It also impairs learning, memory, perception and judgment which are connected to car accidents and workplace accidents.It should not be legalized because it is too dangerous and causes severe health problems. In the article by Taxman and Thanner, â€Å"Risk, Need, and Responsivity† in Crime & Delinquency dated 2006, the authors agree that marijuana should not be legalized because 20% of the state drug offenders reported involvement with firearms and 24% of the state drug offenders had prior convictions for violent offenses.. Repeat offenders connected with weapons and violent offenses incur high costs; but keeping these criminals off of the streets is worth it. C. Cost-Benef its –There are 4 main disadvantages that could take place if we legalize marijuana: 1. Drug users throughout the general population may rise. 2. Many more people will be using firearm and could demonstrate violent behavior 3. More health damage than good could affect millions of people either as users or from second hand smoke 4. Moral and ethical values could be put in jeopardy III. Conclusion 1. California currently only allows medical marijuana users to legally purchase marijuana. If we allow all citizens to have access to this drug, we could potentially lead California down a very bad path.We would see far more crimes and cases of drug addiction. We do not want the future leaders and adults to think that it is politically or socially correct to use this drug. 2. It is clear from previous California elections that California’s people do not want the law to be changed. In order to keep the state safe, and healthy, it is crucial that marijuana is not legalized for rec reational use. Works Cited 1. Joffe, Alain and W. Samuel Yancy. â€Å"Legislation of Marijuana: Potential Impact on Youth. † American Academy of Pediatrics. 113:6 (2004): 632-638. 2. Taxman, Faye and Meridith Thanner. Risk, Need and Responsivity. † Crime & Delinquency. 52:28 (2005): 28-51. 3. Weil, A. T. et. al. â€Å"Clinical and Psychological Effects of Marijuana in Man. † Science Magazine. 162:1234 (1968): 129-132. 4. Benson, John et. al. â€Å"Medical Marijuana – should marijuana be a medical option? † Neighborhood Link National Network. Retrieved from www. neighborhoodlink. com/article/Community/Medical_Marijuana. 5. Khatapoush, S. and D. Halifors. â€Å"Sending the Wrong Message: Did Medical Marijuana Legalization in California Change Attitudes about use of Marijuana? † Journal of Drug Issues. 34:4 (2012): 751-770.

Hundred Years War Essay Example | Topics and Well Written Essays - 2250 words

Hundred Years War - Essay Example and Henry VI2. In the Hundred Years' War France and Spain were allied and supported the Scottish cause of independence from the English crown. England was allied with Portugal and Burgundy and controlled large sections of Aquitaine and northern France"3. The Hundred Years' War was initiated by the King Philip VI of France in 1337 when he stabbed to impound the territories of England which were situated in the southwestern France. The war was ended in 1453 with the victory of France that resulted in expelling of English from the continent. During the war many new weapons and war tactics were used by the French and English army. The historians consider the Hundred Years' War as the most significant conflict of the medieval warfare that further defined the history of both England and France. "The war was consisted of a series of set backs and victories for each side as well as a multitude of shifting alliances between the major and minor powers of Europe in the region"4. "The significance of the Hundred Years' War is the rise of nationalism it engendered, compared to earlier medieval conflicts"5. The English military secured victories in several battles fought during the war but at times they were also defeated by France. "The war laid waste to much of France and caused enormous suffering; it virtually destroyed the feudal nobility and thereby brought about a new social order. By ending England's status as a power on the continent, it led the English to expand their reach and power at sea"6. The English defeat in Hundred Years' War possesses several important aspects and reasons behind it which are going to be discussed after the background, causes and other information about the war. About Hundred Years' War The background for Hundred Years' War was stated preparing 400 years as a result of conflicts occurring between the English and French King. "The conflicts arise because the King of England being a vassal of French King, rules the territory of France more than the King of France himself"7. The French attempted to resolve the problem in three decisive wars including the conquest of Normandy in 1214, The Saintonge War in 1242 and the War of Saint-Sardos in 1324. These wars resulted in the end of English hold on the continent. The conflicts between the two countries grew along with time. "One of the major conflicting issues between England and France was regarding the duchy of Aquitaine which was located in Southwestern France"8. In 1259, the Treaty of Paris designated that Henry III held the duchy as a fief of the French king Charles IV, King of France who will pay liege homage to the king but the situation become complicated with the death of Charles IV, King of France in 1328 without a male heir. Edward III, the King of England claimed that he has a right to take the thorn as his mother was the sister of King Charles. In 1337, the war was started when Edward III raided into French territory and became the King of France. This action of King Edward III initiated the series of war which spread over a century. There were many battles fought during the war period including the Battle of Crecy and Battle of Poitiers which were

MARKETING ESSENTIALS MARKETING PLAN FOR PIZZA HUT Essay

MARKETING ESSENTIALS MARKETING PLAN FOR PIZZA HUT - Essay Example 3.1 Market Share 05 3.2 Market Growth Chart 07 4. Market Analysis 08 4.1 Target Market Research 08 4.2 PEST Analysis 09 4.2.1 Political Factors 09 4.2.2 Economic Factors 09 4.2.3 Social and Cultural Factors 09 4.2.4 Technological Factors 10 4.2.5 Legal Factors 10 4.2.6 Environmental Factors 10 5. Market Competitors 10 5.1 Micro Environment 10 5.1.1 Competitors 10 5.1.2 Customers 11 5.1.3 Distribution Channels 12 5.1.4 Suppliers 12 5.2 SWOT Analysis 12 5.2.1 Strengths 12 5.2.2 Weaknesses 12 5.2.3 Opportunities 13 5.2.4 Threats 13 6. New Product 13 6.1 Product 14 6.2 Price 14 6.3 Promotion 15 6.4 Distribution 15 7. Future Marketing Strategies 15 7.1 SMART Analysis 15 7.2 Marketing Opportunities 15 7.3 Market Future: Acquisitions 16 7.4 New Technology and Expertise 17 8. Financial Forecast 17 8.1 First Year Cash Flow Forecast (â‚ ¤) 18 8.2 First Year Months Balance Sheet (Amount in â‚ ¤) 20 8.3 Three Years Projected Profit and Loss Statements 21 Conclusion 22 Bibliography 23 Introduction Pizza Hut is the world’s leading pizza chain presently operating approximately at 13,000 locations in more than 90 countries. Pizza Hut offers a variety of pizza items to its customers which include its flagship Pan Pizza, as well as Thin n' Crispy, Stuffed Crust, Hand Tossed, and Sicilian. Beside these items, the chain also offers salads, pasta, and sandwiches. 1. Current Position 1.1 Short History It was 1958, when two brothers Dan and Frank Camey established the Pizza Hut in Kansas. After passing several phases, today the chain is one of the well established pizza chains of the world. 1.2 Growth Overview In 1958, only two brothers started the business but today the chain has links to more than 90 countries across the world with more than 30,000 employees are working day and night (http://finance.yahoo.com/). Today it has the potential to entertain more than 171,000 customers by serving 97,000 pizzas per day in the United Kingdom alone. 1.3 Financial Overview Pizza Hut is one of the largest pizza chains. In 2007, it sold 35.4 million pizzas in the UK. During 2010, among other companies of Yum, Pizza Hut went from worst to first in its value ratings (Yum Annual Report, 2010). 2. Mission Statement We take pride in making a perfect pizza and providing courteous and helpful service on time all the time. Every customer says, "I'll be back!†. Pizza hut is an employer that offers its services to the team members for growth and rewarding career in a friendly and wo rking environment. 2.1 P.E.A.R.L.S Passion for excellence in doing everything Execute with positive energy and urgency Accountable for growth in customer satisfaction and profitability Recognize the achievement of others and have fun doing it Listen and more importantly respond to the voice of customer 3. Market Share Information 3.1 Market Share The pizza huts and restaurants provide several various sectors of the food including different types of pizzas like chicken pizza and beef pizza. Some pizza huts also offer snacks, chips, and burger related items along with beverages. Pizza Hut and Domino are the most dominant companies in UK. It has been observed that generally three types of orders are placed in pizza hut. These orders are placed with respect to nature of group and family. The figure shown as Appendix-I indicates that lunch and dinner items are having a larger share of the market as 29% of the fast food industry consists of it. Snack items and related beverages contribute 22 and 21% respectively while hot coffees, breakfast items, and side dishes have a combine share of 28% (Menu Composition Analysis, 2010). Global financial market share of leading companies is shown on the next page. Pizza Hut, Domino, Papa John’s, and Little Caesars are the leading pizza companies of the world. The chart given as Appendix-I

Marketing junk food to children Essay Example | Topics and Well Written Essays - 250 words

Marketing junk food to children - Essay Example Junk foods are made up of sugary ingredients. Unfortunately, sugar is the cause of many diseases in the society. For instance, it is evident that too much sugar in the body in the form of starch result to obesity (Smith 431). Sugar is also associated with the occurrence of diabetes that is among the leading death causing diseases. It is as a result of this negative impact of sugar in the consumers’ health that Coric wrote the script and produced the movie â€Å"Fed Up.† It is crucial for appropriate measures to be taken in order to reduce the occurrence of nutritional diseases among young children. One of the best measures is for everyone to take part in the condemnation of junk food (Smith 431). In doing so, the marketing of junk food to kids in TV programs as well as their respective schools will be stopped. It is also advisable for the adults to learn about the production of junk foods so as to avoid buying them for their children. Additionally, it is crucial for the parents to inform their children on the negative effects of junk foods so that they can avoid consuming them in their

Educational Essay Example | Topics and Well Written Essays - 250 words

Educational - Essay Example Re-design the space to â€Å"provide effective restoration breaks and allow them to return to their work cognitively refreshed†. Today I am discussing on the design redesigning proposal of one of the buildings at the Cities Hall. This is a compute room located within the area. The room needs to be redesigned in respect to the addresses of the students in the educational environment by adhering to the being away, extent, Fascination and compatibility properties in architecture. Since the students have a lot to do at the college, they need refreshment and the computer room will be one of the best places. This is because the room has got computers for the students to be using while resting. It is also one of the best places the students like to hang out at. When redesigning the room, the first thing to do is conceptualize the room fully and perform some testing assumptions. This will go hand in hand with the evaluation of the results then followed by refining the craft of the building. This will begin with the viewing of the placement by redesigning the building by leaving enough spaces for the students to have good indoor and outdoor movements. This includes leaving enough spaces in the building. The design will focus on the properties of Address which entails Being away, Extend, and compatibility. Being away entails a new routine to be used by the students. The extent entails designing the room in order to follow the coherence needed and make the students be familiar with the building. Compatibility will abide with the students’ requirement by fitting and supporting the students. Example is having a place for the students to put their luggages. Under the indoor and outdoor view plan, the design will be well analyzed by the interactions of the students and locating their specific locations likes. Testing of the results will be done by the use of ANOVA testing. The indoor and outdoor of the room will be well analyzed and

Manhattan Bagel Essay Example | Topics and Well Written Essays - 750 words

Manhattan Bagel - Essay Example Since its inception, the association now has over 1000 franchise members, as well as 350 suppliers and 7000 franchisee members. Manhattan Bagel Franchise Manhattan Bagel always brings fame to the customer's desires for each varied sensation in flavour. It also creates a very uniquely attractive place featuring traditional as well as modern selections for their meals. The company is about authentic food for the real people, this serves in a way suggesting that each customer is a treasured neighbour. The companies’ authentic food includes, the award winning bake bagels and boil, and also goes right in to our appetizing and freshly baked food. The success of Manhattan stores depends on various factors, this includes availability of the suitable stores sites and securing of lease terms for new locations, also, should consider the company’s ability to obtain or acquire construction and also other necessary permits in timely manner, moreover, ability to meet schedules set for construction, the financial and capabilities of company’s main franchisees, lastly the company should have business and general economy conditions (Grumet). Its success partially depends on the ability it has to attract, contract and retain suitable franchisees and their abilities to open and also operate each of the stores successfully. To spice it all, Manhattan business may be subjected to changes in the products tastes to maintain consumers, local and regional economic conditions, national, type and the trends in demography, location and number of the businesses competing. The competition is always increasing in Bagel industry significantly with the increasing number of regional, local and national stores competition for locations of stores and franchisees, as well as their customers. The services offered by the company are standardized and maintained by the authorities’ regular checks (Grumet). It understands and also acknowledges that each and every detail or in formation that is valid to the company is given attention. Through this, the company maintains high standards in its operations and product demands are in that case increased, sold all over the markets by their stores while the reputation and goodwill is protected. Manhattan Bagel Strengths Manhattan Bagel strengths are seen in the company’s brand which exists with franchisee field support structure. It began at its inception and thereafter polished and honed ever since. The other strength of Manhattan Bagel is the senior positions in the management are filled with the veterans from the company thus bringing a very strong background operating the business. The leadership in the company is also very skilful and experienced in all supporting departments. Moreover, the program in the company extends the daily operations in individual store, from the right manuals supply to topical training thorough field support. Additionally, while the company strive to uphold the standards of their stated brands, it also works with franchisees on a consultative base through the Franchise Consultant network to help it improve by moving the brand forward. The company also has in-house culinary department ranking with the best in industry (Grumet). The culinary researchers in the company and seasonal chefs are considered to be constant quest for the future of the Manhattan. Through this, the company franchisees showcased and the cutting edge culinary prospered in the markets. Manhattans Bagel weaknesses Though many companies have gone into

Choose one country in the world and answer the following questions. i Essay

Choose one country in the world and answer the following questions. i pickd Brazil - Essay Example language is Portuguese, and although Brasilia is the capital city, Sao Paulo is the largest city in the country (as of 2012 its population stands at massive 11.2 million). Rio de Janeiro, Belo Horizonte and Salvador are also hugely populated. The annual population growth rate currently stands at 1.17%- one of the fastest in the world. Life expectancy in Brazil is one of the highest in the world at 73.1 years, with an average annual income of $12,917; the GDP (nominal exchange rate) is $2.5 trillion, while the GDP (purchasing power parity) is $2.3 trillion (Richard 52). Annual growth stands at 3.5% as of 2012. According to the Brazilian government’s 2011 statistics, 90.3% of the adult population is literate and the infant mortality rate is 22.5/1,000, representing 22.5 deaths per a thousand births. What surprised me most about Brazil is that the country’s land size and population just about matches that of the United States. Apart from this, I was also slightly taken aback to realize that Brazil actually manufactures its own aero planes and jets, being the fourth largest producer of commercial planes and jets in the whole world. Something else which got me scratching my head is that it is also the only Latin American country to own, service and maintain its own aircraft carrier; I consider this to be quite an achievement. Compared to the United States, life in Brazil is cheaper, taking into consideration that both countries are large, populated and heavily industrialized (Richard 74). Just like the United States, the population is very diverse as it is composed of people of Portuguese, Spanish, German, Italian Japanese and Middle Eastern heritage in addition to indigenous peoples. Brazilians are hardworking and dedicated, but they are also one of the friendliest and fun loving people in the world. They lead lifestyles that can be considered liberal and free. According to Richard (105), 60% of the world’s largest tropical rainforest and ecosystem (the Amazon)

INTERPERSONAL COMMUNICATION Essay Example | Topics and Well Written Essays - 250 words

INTERPERSONAL COMMUNICATION - Essay Example The chapter has addressed a way of initiating a relationship. There are relationships of circumstance and those of choice. (172) the former is characterized by individuals’ lives overlapping, which enhances contacts, while the later is defined by the relations made with friends or partners. Both relationships are however not mutually exclusive. In the same page, the author reveals a number of issues that would define personal attraction particularly what is referred to as short term initial attraction and long-term maintenance attraction. Away from sexual and physical attraction, it is also noted that intellectual, spiritual and personality attraction plays a huge role in personal attraction. In their further arguments, the author identifies a few more things that they believe plays a very important role in defining interpersonal attraction. Some of these issues that have been identified include; similarity. By this, it is noted that there are things that brings individuals together based on characteristics, attitudes, values as well as interests, which are common among them. Others that have also been noticed are physical attraction, sexual attraction, the proximity with which one is to another, the complementarity of others specifically people whose interests and activities differ but complement one another. The chapter looks in details, what one would say first and in what context does one say something. In the process of saying things for the first time, one would certain ask questions. The chapter is quick in highlighting things that are believed to come out in questions and therefore provides some clue on how one can ask great questions. The author describes what he believes to mean a great question. Asking a great question is noted to mean tailoring the question to the person as much as possible then using what one has learnt and observed to formulate the question. The chapter provides a hint on how people can

Amazing Grace And Amazing Revelations Essay Example | Topics and Well Written Essays - 1250 words

Amazing Grace And Amazing Revelations - Essay Example The entire book is devoted to moving real life stories of the poor and deprived of the district and mind boggling figures of poverty. Perhaps, the main reason behind the success and effectiveness of the book is that it does not put forth long, confusing scientific charts and graphs to explain the poverty and give related figures but exposes the situation by introducing the reader to real life characters - people who live and breathe in that district and are stuck in such a vicious cycle of poverty that is simply beyond our imagination. Kozol's prime focus is women and children. He tries to show that poverty, racial discrimination and lack of basic civic amenities affects this weak and vulnerable stratum of our society the most. For instance, Kozol points out how widespread AIDS actually is by simply stating that almost everyone knows someone who has died of or is currently suffering from AIDS. By 1993 alone, nearly 2000 children had lost their mothers due to AIDS (194). Health care facilities are almost non-existent and hospitals are over-crowded. Patients suffering from serious and at times terminal diseases actu ally have to wait at the hospital for days before they can get a bed or a room. Kozol relates the incident when he had a conversation with David about his sick mother. When asked if she got approval for SSI, David replies in the negative, simply saying, "They say she isn't sick enough" (99). The hygiene and sanitation conditions are so terrible that toxic barrels are strewn everywhere and a great majority of the children suffer from asthma due to the garbage incinerators operating in the residential area. Perhaps the most horrifying section of the book is when Kozol speaks of the problem of rat infestation. Kozol's relation of the incident when a child's fingers are eaten away by rats is too sickening (114). The poverty problem in the area is so acute that soup kitchens and shelters are crowded with mothers elbowing violently and hoping that their child might get some food today. During winter there is acute shortage of warm clothing and sometimes the city government is benevolent enough to hand over sleeping bags. The distressing words of a father of four haunt one by the ruthless honesty of their tone, "You just cover up ... and hope you wake up the next morning" (4). The extreme poverty and totally hopeless circumstances has given rise to widespread depression amongst the children. The seriousness of the problem can be gauged from the fact that the school psychiatrists have long waiting lists of patients. Kozol relates many cases, for instance, of a child staying awake late at night simply to smack cockroaches and of children who cry a lot without knowing or being able to explain why. Kozol's friends at Mott Haven are vehemently critical of the governments policies regarding the poor and are furious at Mayor (fmr.) Rudolph Giuliani for cutting back on a few basic and precious facilities provided to the poor (100). They claim Giuliani's policies, which aim to cut back on sanitation facilities, food programs, drug-rehabilitation programs etc., are unfair and will hurt the poor exceedingly. Saying that the book is an eye opener will be a terrible under statement. The first thought that comes to mind

English Coursework on Miller Essay Example for Free

English Coursework on Miller Essay Alfieris speech at the beginning begins by introducing a lot of concepts which are explored upon later in the play. He begins with a speech on lawyers and the distrust that originates from it, You see how uneasily they nod to me? Thats because I am a lawyer a lawyer means the law, and in Sicily the law has not been a friendly idea. We can see later in the play that both Eddie and Marcus turn to the law for help, but the law lets them down, You mean to tell me that theres no law that a guy which he aint right can go to work and marry a girl and. These two parts of the play link to show us that the law will often clash with loyalty, and when something interferes with loyalty, one often has to turn to the law for help; however, the law may often deal with the problems too severely. We can see this by the drastic action that Eddie has to take to remove Rodolpho from the scene. However, the idea of justice is introduced. It is possible to deduce that the law governing Italy is not the law that is written as we can see from what Alfieri says about justice Justice is very important here and what Marco says about the law, All the law is not in a book, later in the play. This may be suggesting through authorial intention that something greater governed Italy than the written law, which controlled justice in its own right. We can see throughout the play what this other law may be: loyalty. One of the first major mentions of a sense of loyalty begins with Eddie, And they spit on him in the street, his own father and his brothers. This suggests that the law is secondary to loyalty within a family, and if the law is acted upon when there is a problem in a family, the loyalty is broken and the one who broke it is punished in another way. This is a premonition of what happens to Eddie later on. Eddie speaks his own fate in this small anecdote, He was crazy after, I tell you that, boy. At the end of the play, after Eddie has broken his loyalty, we see him grow crazier as Beatrice confirms, Hes crazy now, you know the way they get, what good is it! and we see in the stage directions, He is incensing himself and little bits of laughter even escape him as his eyes are murderous. This completes the anecdote, and suggests that the play was futile from the beginning and an inevitable turn of events towards the end of the play, making the play a tragedy. This is reinforced by Alfieris beginning speech, in which he says, heard the same complaint and sat there as powerless as I, and watched it run its bloody course. This also shows Alfieris futile attempts to help the situation and the inevitable bloody course towards the ending. As well as demonstrating the anecdote, Eddie may also represent affectionate emotions between members of a family. It could be interpreted that Eddie feels a love for Catherine, Hi Eddie! [Eddie is pleased and therefore shy about it ] near the beginning of the play. Miller maybe exploring the effects of such forbidden love, as it were, on a marriage. We can see the effects on Beatrice, When am I gonna be a wife again, Eddie? as Eddie fights his possible love for Catherine within him. Eddie tries his best to suppress his other feelings until he has to warp the past in order to cope with his relations with Beatrice by putting the blame on her, I want my respect, Beatrice what I feel like doin in the bed and what I dont feel like doin. This suggests that Eddie does not want this unwanted love for Catherine as he attempts to change history to cover it up and put it behind him. Beatrice reacts differently however in her discussion with Catherine, If it was a prince came here for you it would be no different. This suggests she is fighting against Eddie to get Catherine out of the house so that her relationship with Eddie can return to normal. Along with Catherines love for Rodolpho, this can show that love for another person can overcome a strong attachment with another and break bonds to allow the love to flourish, in this case, Beatrice is severing the ties between Catherine and her home. However he also has trouble letting go of Catherine, Hes stealing from me! . This quote suggests that he sees Catherine as his own personal property and not a woman of her own right. This idea of owning Catherine is reinforced by the way he is unable to stop giving her orders even when he was trying to right their relationship, Suppose I told her to go out. This suggests that Eddie does not fully understand the situation and cannot ever be trusted to ever completely understand the freedom he has to give Catherine. To focus more on his relationship with Catherine, we can see a protection around Catherine and a wish to hold her down as a baby which is shown in the first scenes. I think its too short, aint it? Through this Miller may be suggesting that if the one a person loves changes, the other will strive to keep that person as how they were even though they can never return. There is, however, a tenderness when it comes to critisizing Catherine, Yeah, its nice. This shows he cannot bring himself to hurt Catherine at the beginning and only wishes for her to feel good. However Eddie may be loving a Catherine that no longer exists, and so he strives to hold Catherine down, Youre a baby, you dont understand these things,. This will in turn hurt Catherine as she is unable to be free whilst continuing her relationship with Eddie. We can see how Catherine reacts to these restrictions Eddie places on her. She is upset by his disapproval of her skirt, [almost in tears because he disapproves] which suggests she has great respect for Eddies opinions about her. As Eddie exerts his dominance over her,Listen, I could tell you things about Louis which you wouldnt wave to him no more and she tries to get out of it [trying to joke him out of his warning], we can see this as another premonition as how she tries to get away from Eddie later in the play. Beatrice poses the question in her mind, Look, honey, you wanna get married, or dont you wanna get married? of whether she should break the bonds and be free, or stay with Eddie and never become a woman. At this point, Catherine is unable to decide I dont know B. and these quotes show us that she has not broken away the ties between herself and Eddie. However later on, her love for Rodolpho and to live her own life overcome her love for Eddie, Hes a rat! He belongs in the sewer! . This suggests that throughout the play we have seen Catherine become a woman from being a child, and Miller might be telling us, through the dramatic changes in her affections, that becoming a woman from a child is a traumatic experience for many. From this Miller has introduced most of the main ideas in the rest of the play from the scene at the beginning. Because they have been set in motion from the beginning, and are carried through right to the end, we get more of the idea of inevitability and tragedy within the play. What is more, because they reach fruition right at the end, they remind us of a cyclic pattern in which we are reminded of the beginning of the play. This suggests to the audience that the whole event was futile as it will do nothing to help such situations in the future.

Gentrification And The Effects On Urban Development Sociology Essay

Gentrification And The Effects On Urban Development Sociology Essay Today, the urban development is vulnerable to the growing impact of gentrification. At this point, it is worth mentioning the fact that the process of gentrification emerges under the impact of multiple factors, including economic and social ones and the process of globalization, which stimulate consistent changes in urban development. At the same time, the process of urban development leads to socioeconomic and demographic changes, provoked by the gentrification. However, possible effects of gentrification are still under-researched and the debate on whether gentrification leads to positive or negative effects persists. Nevertheless, changes in the development of cities are significant and force policy makers either to support or to slow down the process of gentrification. However, any attempt of policy makers to regulate the process of gentrification and, therefore, urban development confronts the problem of the interference of state in the process of local economic development. In such a situation, policy makers should understand clearly whether gentrification has positive or negative effects and whether benefits of gentrification outweigh its disadvantages. In fact, the support of gentrification is essential only on the condition of the positive effect on the urban development but, in actuality, the risk of widening gaps between different social classes, namely between the rich and the poor, may widen that may lead to the exclusion of the poor and their marginalization. Therefore, the process of gentrification needs to be studied in details but policy makers should take into consideration the fact that gentrification has a considerable impact on the social, economic and demographic development of modern urban areas. THE ESSENCE OF GENTRIFICATION Definition of gentrification Gentrification is a relatively new trend, although specialists (De Courcy Hinds, 1987) refer the origin of gentrification to the mid-20th century and the post-World War II period, when considerable changes in communities inhabited by representatives of lower- and working class had started. In this regard, it is possible to refer to the experience of Brooklyn, New York: On November 22, 1966, a small group of city construction workers arrived at the corner of State and Nevins Street in Brooklyn with orders to raze an abandoned brownstone. Having recently gained possession of the dilapidated four-story building through non-payment of taxes, the city had become concerned that the empty townhouse was a gathering place for homeless men and drug users and decided to demolish it (Osman, 2011, 1). However, it is only by the late 20th century, the trend to gentrification had become strong and today this is one of the most significant trends in the urban development. At this point, specialists (McKenzie, 2006) define gentrification as the process of shift of the middle class population in low income and working class communities. As a rule, the native population of low-income and working class communities is steadily replaced by representatives of the upper-class and professionals, who settle in the area, whereas the share of the native population decreases substantially. The wealthier population moves to low-income and working class communities, settles their and starts developing local communities. In such a situation, the native population of these communities has to move to other areas and settle there. Nevertheless, the process of gentrification is still under-researched and needs further studies because this process is quite complicated and relatively new. This is why researchers attempt to explore the process of gentrification in the context of urban development (Sassen, 1995). In such a way, it is possible to understand its effects on urban development. However, before studying effects of gentrification on urban development, it is necessary to dwell upon basic causes of gentrification. Causes of gentrification can help to understand the essence of this process and its effects in a long-run perspective. Economic causes of gentrification On analyzing causes of gentrification, specialists (Brandes Gratz, 1989) point out economic concerns as one of the major causes of gentrification. To put it more precisely, the economic development of large cities contributes to the fast progress and growth of the population along with the growth of needs and requirements of the population concerning residential areas, conveniences and environment. In such a situation, the younger generation of professionals and representatives of the middle class often prefers to move to low-income and working class communities, where they can afford purchasing a permanent lodging at a relatively low price and, thus, start living separately from their parents, owning their own lodging. The availability of lodging and its relatively low price attracts representatives of the middle class, who look for independence and affordable lodging. In addition, many professionals are driven to low-income and working class communities by their professional concerns. For instance, if professionals work in the city, they feel more comfortable, when they live close to their work that allows them to save travel time as well as money. In such a situation, economic concerns become prior to representatives of the middle class and professionals, mainly young people, who move to low-income and working class communities from traditional areas of their living. Social causes of gentrification In actuality, social factors also play an important part in the emergence of gentrification in modern cities that affects consistently their development. In this regard, specialists (Ley, 1995) argue that artists, teachers and cultural administrators are in the avant-garde of gentrification because they seek for new place of residence, where they can settle being free of the dependence on automotive transportation and other issues emerging in the suburban areas, where representatives of the middle class normally live. In fact, young graduates, educators, artists and other representatives of the middle class prefer to settle closer to the city center to get access to basic conveniences, services and important city areas, including hospitals, trade centers and other areas. In such a way, they attempt to maintain the lifestyle they have used to while studying and get wider access to basic services they need at the moment. In addition, gentrification increases their independence from par ents and automotive transport. In such a way, representatives of the middle class move to low-income and working class communities. Economic globalization At the same time, some specialists (Ley, 1986) point out that the process of gentrification is closely intertwined and is provoked by the process of globalization. In this regard, it is worth mentioning the fact that the process of globalization contributes to the free and fast movement of capital along with the migration of the population. The migration of the population and movement of capital being enhanced by the free movement of capital stimulates gentrification. Representatives of the middle class purchase houses in low-income and working class communities and they can repair and improve to match their standards of living. In this regard, immigrants with a relatively high level of income can also move to low-income and working class community, where they can purchase houses at a relatively low price and repair them respectively to their standards. At the same time, globalization contributes to the emergence of banking and service activities which replace the traditional manufacturing core of the urban economy. In such a situation, professional working in the banking industry and professionals working in different industries providing services prefer to move to low-income and working class communities, where they can settle close to their workplace, whereas many professionals today work just at home that allow them to save time and money on transportation. At the same time, low-income and working class communities attract them due to the relatively low price and location close to the city center and respective conveniences and services being available to representatives of the middle class living in these communities. THE EFFECTS OF GENTRIFICATION ON URBAN DEVELOPMENT Economic effects of gentrification In actuality, the process of gentrification leads to consistent changes in urban development and affects consistently the economic development of communities vulnerable to the impact of gentrification. In this regard, many specialists warn that the obvious problem being that the low income portion of the social fold is being disregardedà ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬literally and figuratively (Whatà ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â‚¬Å¾Ã‚ ¢s Up with Gentrification, 2007, 5). What is meant here is the fact that gentrification leads to the replacement of poor, working class population by representatives of the middle class. In such a situation, low-income families and representatives of the working class have to move from their communities to other ones, where the standards of living are even lower than that of their own communities inhabited by representatives of the middle class. Representatives of the middle class, in their turn, inhabit low-income and working class communities start consistent changes in local communities, where they settle. These changes lead to consistent raise in standards of living because they repair their houses and stimulate the development of commerce and different services, which are essential for the maintenance of their high standards of living. In such a way, representatives of the middle class invest substantial funds in the development of local communities to match them to their traditional standards of living, which are naturally consistently higher than standards of living for low-income families and representatives of the working class. At the same time, the rise of standards of living, significant investments, the development of the local infrastructure, services and facilities increases substantially the price of real estate in the community as well as costs of living in the community. In such a situation, representatives of the middle class settling in low-income and working class community bring considerable investments but these investments lead to the increase of costs of living in communities making the life unaffordable for low-income and working class population. As a result, the economic development of communities vulnerable to the impact of gentrification changes consistently. Specialists (McKenzie, 2006) argue that representatives of the middle class moving to low-income and working class communities boost their economic development that leads to the increase in housing prices and overall rise of costs of living. As a result, low-income and working class communities turn from poverty stricken communities into successful and rapidly progressing communities, where business activities emerge successfully. At first glance, economic effects of gentrification are positive. However, specialists (Sassen, 1995) warn that such positive effects of gentrification can have extremely dangerous side-effects, especially in relation to low-income and working class. To put it more precisely, the low-income and working class population has to move from the communities, where people used to live before the arrival of representatives of the middle class. Often they have to move away from the areas located close to the city center and they should look for cheap lodging. However, as the process of gentrification emerges, they have substantial problems with finding cheap lodging, while they cannot afford constructing their own houses, which used to be the prerogative of representatives of the middle class. Representatives of the low-income and working class cannot afford purchasing their own homes as well. In such a situation, they are doomed to live in outskirts of large cities or other areas, where cond itions of living deteriorate and become unbearable for the population. In contrast, representatives of the middle class improve conditions of living, stimulate the development of business activities. As a result, the poor are forced to live in communities suffering from economic stagnation, whereas the rich and middle class prosper. The economic disparity between classes deteriorates the economic development of low-income and working class. The disparity in economic development of different parts of cities leads to the backwardness of the parts inhabited by low-income and working class, whereas parts of cities inhabiting by middle class prosper. The economic prosperity stimulated by gentrification improves the local infrastructure and opens new ways for the development of business activities. As a result, the wealth of the middle and upper-class increases and is accumulated in the hands of representatives of the middle and upper-class. In contrast, the poor grow poorer and cannot afford living within the city that leads to their marginalization. Social effects of gentrification At the same time, consistent economic changes affect the development of the social life of communities vulnerable to the impact of gentrification. At this point, it is worth mentioning the fact that the deterioration of the economic situation in urban areas and the deterioration of the position of low-income and working class. Representatives of the middle class are also vulnerable to the impact of gentrification. However, the impact of gentrification is different in relation to low-income and working class and in relation to the middle class. Economic changes affect consistently the position of both classes that naturally contributes to consistent social changes. In fact, the poor are vulnerable to the negative impact of gentrification. First of all, they have to move from their traditional residential areas to new ones, where they have to start a new life and where conditions of living are worse compared to the communities they used to live in. Representatives of the low-income and working class have to live in new communities and start a new life, which naturally evokes a number of social problems, among which it is necessary to develop basic infrastructure and positive relationships within the community. Furthermore, as the poor have to move to a new residential area, they often have to change their workplace because they cannot always afford covering transportation costs or the schedule of their work makes their work impossible. As they change the workplace, they may face the problem of unemployment, especially because they have to move to areas with the poor business development and with stagnating economy. In such a situation, representatives of the low-income and working class can face another problem à ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬ the problem of high crime rates in areas, where they settle after they have to move from their communities under the impact of gentrification. In fact, being in a desperate position and having no means for living, the poor are forced to commit crimes to earn for living and to afford living in a new community, where they move to from communities now inhabited by representatives of the middle class mainly. Representatives of the low-income and working class slip to criminal activities that naturally increase the social tension in poverty-stricken neighborhoods, where they live. Another social problem representatives of the lower class face is the lack of access to education. In fact, as they are removed from traditional residential areas, where they used to live, the poor have to develop their life in new communities and areas, which are often underdeveloped. They cannot afford developing education organizations and education system in their new community on their own. The state and local authorities are not always capable and willing to support the population of local communities. As a result, new communities inhabiting by the poor either have insufficient capacities to provide access to education for students in these communities, or have no education organizations at all. Obviously, the lack of access to education will increase the social tension even more because without education individuals cannot get well-paid jobs and good career opportunities. In addition, children living in low-income communities with the high level of crime rates are vulnerable t o the impact of their criminal environment. Therefore, the position of the poor will deteriorate, whereas social problems will increase over and over again. In addition, it is worth mentioning the fact that health care services are not available to the poor, who have to move to new residential areas after representatives of the upper class have replaced them in their traditional residential areas. In fact, health care services are not available as education services. Today, health care services are very expensive and the poor cannot afford the development of health care organizations in their communities, whereas the state lacks funds for the provision of health care services to all people. In such a situation, the poor are deprived of basic opportunities to have access to basic health care services. In contrast to the poor, representatives of the middle class can benefit from gentrification economically but they can hardly benefit from gentrification in social terms. What is meant here is the fact that representatives of the middle class exclude representatives of the lower class from the mainstream culture and benefits associated with the fast economic development of their communities. In fact, in social terms, gentrification leads to the growing tension between representatives of different social classes. To put it in simple words, representatives of the middle class improve their conditions of living, whereas the poor become poorer and suffer from a bunch of socio-economic problems. Moreover, the gap between the rich and the poor grows wider and specialists (Sassen, 1995) forecast serious conflicts between the two classes under the impact of gentrification because the problem will aggravate and the gap between the two classes will widen. Demographic effects of gentrification Along with numerous economic and social effects of gentrification, specialists (McKenzie, 2006) distinguish demographic effects. In this respect, it is important to place emphasis on the fact that the process of gentrification contributes to consistent demographic changes. In fact, representatives of the middle class purchasing houses in the low-income and working class communities tend to have a few children. At this point, it is worth mentioning the fact that representatives of the middle class, who move to low-income and working class communities, are young people mainly. As a rule, they are not having children, when they move to low-income and working class communities. They need substantial financial resources to start a new life in low-income and working class communities. In such a situation, representatives of the middle class prefer to invest in the repair of their new houses and the development of low-income and working class communities to transform them into prosperous co mmunities. In such a situation, the rise of taxes and costs of living decreases the capabilities of representatives of the middle class living in low-income and working class communities of having children. In a long-run perspective, gentrification leads to the aging of the population living in communities, where representatives of the middle class have moved to. The same trend can be traced in low-income and working class communities because they cannot afford maintaining large families. In such a situation, the risk of the demographic crisis emerges because both representatives of the middle and lower classes have a few children. Specialists (Brandes Gratz, 1989) argue that, in a long-run perspective, the demographic crisis provoked by gentrification can lead to the aging of the population. The latter may provoke the deterioration of the economic situation and provoke social problems. ADVANTAGES AND DISADVANTAGES OF GENTRIFICATION Advantages of gentrification Obviously, gentrification has a number of advantages. First of all, gentrification stimulates the fast economic development of low-income and working class communities because representatives of the middle class invest substantial financial resources in the development of the communities. The investment and the development of local infrastructure increase housing prices in local areas. In such a situation, the housing taxes increase as the wealth of the community increases. Therefore, the economic development of communities under the impact of gentrification is accelerated. The development of communities stimulates the development of cities at large because cities benefit from the increased revenues obtained from taxation and accelerated economic development of would be low-income and working class communities. Representatives of the middle class obtain large opportunities for the further improvement of their standards of living. As a result, they benefit from gentrification. Disadvantages of gentrification On the other hand, gentrification brings a number of problems and has substantial disadvantages. First of all, Gentrification deteriorates the position of the poor, who have to move from low-income and working class communities, which are inhabited by representatives of the middle class. Their economic position becomes even worse as they have to move to new communities. In fact, the poverty breeds poverty being expelled from low-income and working class communities by representatives of the middle class. In addition, representatives of the lower class have to move to new communities, where a bunch of socioeconomic problems emerge. Among the major problems of socioeconomic problems, it is worth mentioning unemployment, the lack of access of the poor to education and basic health care services, and other problems. However, what is more important about gentrification is widening the gap between the rich and the poor. In fact, the poor become poorer, whereas representatives of the middle class improve their position. In such a situation, gentrification can undermine the foundation of modern cities because it raises unsurpassable barriers between the rich and the poor living in the cities but this antagonism can provoke serious social conflicts, including growing crime rates, which may affect not only poverty stricken communities but also other communities, including communities inhabited by representatives of the middle class and communities emerged in terms of gentrification. CONCLUSION Thus, taking into account all above mentioned, it is important to place emphasis on the fact that gentrification is quite a controversial process. In actuality, it is obvious that gentrification affects consistently the urban development. However, effects of gentrification can be highly controversial. On the one hand, gentrification stimulates the economic development of communities, where representatives of the middle class move to. However, economic benefits may be short-run, whereas, in a long-run perspective, gentrification can lead to the widening gap between the rich and the poor in cities. The latter problem will lead to the deterioration of the social stability within cities. Nevertheless, the full impact of gentrification on urban development should be studied further.

Financial Decision Making, Easyjet in comparison with Ryanair

Financial Decision Making, Easyjet in comparison with Ryanair The purpose of this report is to prepare an analysis of the financial performance and position of Easyjet plc in comparison with that of Ryanair plc. The CORE model approach was used in preparing a review of each airlines annual accounts with selected ratios applied to evaluate compare, contrast their financial performance. An analysis of Easyjet plc performance and position against Ryanair plc confirms the following key findings. The principal finding from this report is that the current finance strategy for Ryanair plc is not sustainable in the long term. Easyjet plc diversification into ancillary activities has incurred costs which will be recouped over a period of time and reflect a positive investment strategy during and after the economic downturn. Furthermore, Easyjet will achieve additional savings if an optimum hedging policy is implemented during the current economic downturn. Introduction An appreciation of the European airline industry was considered in relation to Easyjet plc current financial positioning and brand recognition as the preferred low cost airline provider. The financial performance and position of Easyjet plc was appraised against Ryanair plc through application of the CORE (Context, Overview, Ratio, Evaluation) model. Context establishes the market share and European airline environment from an internal and external perspective that the two plcs operate and compete within. Overview is an appraisal of the financial performance between the two Plcs in relation to similar operational activities and qualifying their accounts and strategic approach during the current economic downturn. Ratio analysis establishes the relationship between stated totals within the Balance Sheet, Cash Flow Statement and Income Statement to establish the base of Evaluation for financial performance between Easyjet plc (Easyjet) and Ryanair plc (Ryanair). Evaluation of the two accounts is an integrative component of the CORE approach based upon the three previous stages to assist with identifying an overall conclusion from the analysis. The overall conclusion may then be drawn as to the degree of success of the organisation in terms of the implementation of the corporate strategy for customer, competitors and suppliers according to the specific focus of the analysis (Moon Bates, 1993). Context (Internal): Each airline as their primary activity provides international and regional low cost airline fares within the European airline industry. Both airlines are recognised within the market and operationally focussed towards a low-fare strategy. Sustainability and success of providing low cost airline fares is critically dependent upon retaining a low cost base especially during the current economic downturn to protect long-term viability. The global duopoly of Boeing and Airbus within the European airline industry influences the high fixed costs relative to variable costs that is inherent to airline pricing and generates the operational focus towards retaining a low cost base. Reducing operational costs provides each airline with flexibility to offer lower ticket fares, issue dividend shares or retain earnings for future investment as part of their competitive advantage over a rival (Brassinton Pettit, 1997). From a media perspective and operational approach, Ryanair has successful introduced a low cost base through staff optimisation and promoting www.ryanair.com for online ticket sales. Application of the airlines website can provide an integrated marketing communications strategy as well as introducing an effective management information system to co-ordinate revenue activities. Ryanair is reputed to have achieved  £22 million pounds in reduced sales and distribution costs through application of their web-based management information system (Done, 2008). Additional operational savings to establish a low cost base have been generated through Ryanairs standardisation of their airline fleet to Boeing 737s. Standardisation provides lower staff training and maintenance costs due to familiarity and inventory considerations. Both airlines target the European short-haul city break market segment and utilise a system termed yield management to allow seats to be priced according to supply and demand (Ryanair Plc, 2008). Ryanair and Easyjet focus upon an optimum turnaround time at each due to empty planes being non-revenue generating. To maximise profits, fixed and variable costs are regularly challenged to introduce further savings which establishes the rationale as a low cost airline provider not to be forthcoming with compensation to passengers for flight cancellations. It is therefore an operational priority to ensure service delivery with minimal lost baggage claims and flight reliability exceeds the industry standard in relation to key performance indicators. Dependent upon the size of the aircraft purchased or leased from Boeing and Airbus, economies of scale can be achieved to increase the operating profit margin of the airline. Establishing a sustainable low cost base can increase the projected operating profit, increasing the airlines purchasing power to negotiate preferential commercial arrangements with suppliers. Furthermore financial success in one industry sector provides opportunity to develop activities in another sector using ancillary partners. In relation to each airline generating ancillary revenue, Easyjet activities have diversified into various market segments and achieved higher revenue returns beyond that of Ryanair, as detailed within each airlines Income Statement. Both the airlines have expanded their ancillary activities with Easyjet achieving a 115% improvement for ancillary services including Car rentals, Hotels, apartments, Travel Insurance and Airport Parking as recorded within their respective company accounts.Ultimately, Easyjet is expanding the portfolio of activities during the economic downturn to develop the brand and establish complimentary ancillary services to mitigate against revenue loss in a specific sector such as Passenger flights. In contrast, Ryanair has generated a 23% improvement in their ancillary services with passenger service the primary focus to achieve revenue (Easyjet Plc, 2008). As a short term strategy, this has possibly generated the concern that Ryanair performance has improved over Easyjet, yet as a long term approach the approach is not sustainable. This is due to all operational activities having a specific cost threshold and in a fare war contest it may become necessary to subsidise activities from other more profitable ancillary activities. The current approach by Ryanair in the economic downturn is therefore considered prejudicial against their long-term viability. Each airline primary assets are detailed within the Income statement that reflects the substantial capital outlays in relation to the purchase of aircraft fleet for both providers. In the long term this approach can be beneficial due to reduced future costs associated with leasing as well as minimising interference from external financing companies concerning pricing tactics with possible withdrawal of finance due to perceived negative publicity of the airline. Ownership of aircraft establishes a tangible asset and brand platform that can be applied to increase shareholders and investors confidence. The accumulation of assets establishes a long-term investment strategy that requires operational maintenance and management depreciation consideration. Ownership of the asset ultimately provides each airline with the opportunity to select without constraint their service partners for maintenance, cleaning and insurance coverage. As previously mentioned both airlines target the short-haul city break markets and utilise the yield management system to allow seats to be priced according to supply and demand therefore exercising full control of their marketing mix to the consumer (Airlines, 2006). Recorded revenues of  £2,171 million was achieved by Ryanair during the financial year ended on March 2008, representing an increase of 21.3% over 2007 and generating 37.6% of the total revenues in 2008(Ryanair, 2008) in comparison recorded revenue was  £2,362.8 million in September 2008 generating an increase of 31.5% compared to their performance in 2007 and reflective of a sustainable corporate strategy to protect the viability of Easyjet during the economic downturn(Easyjet Plc, 2008). Easyjet completed the acquisition of GB Airways in January 2008 with Ryanair attempting a similar corporate acquisition that was rejected by Aer Lingus. Currently no progress has been achieved from the Aer Lingus rejection of the offer yet the collapse of buget airlines Sky Europe in 2009 with previous budget airlines also going into administration does not provide the consumer with confidence in low cost fare providers (PIGNAL, 2008). Context (External) According to Datamonitor (2008) by 2011 the airline industry is forecast to have a value of  £89 billion with 773.5 million passengers anticipated to use airline travel on an annual basis. Competition amongst the two airline providers is increasingly focused towards cost and brand marketing. Various management cost reduction initiatives with provision of only one class of service have developed each airlines reputation as a no-fill providers due to costs being charged for all non-essentials. To assess the external profile of Easyjet in comparison to Ryanair a SPECTACLES approach is applied with consideration towards the various categories as well as applying Porters five forces model (1980). Social considerations include recognition of both airlines as market leaders with strong brand identification for low cost fares. Furthermore, both airlines have developed a reputation for reliability through punctuality of flight times, minimal flight cancellations and reduced lost luggage claims. Political considerations include all regulatory constraints that may apply to both providers such as airport charges which are generally levied through regulation rather than commercial negotiation. Economic considerations include the economic downturn, reduced disposable income and expenditure of customers together with increasing fuel costs due to global conflict and fear of terrorism attacks. In addition, global events have increased insurance provisions and requirements within the airline industry. Cultural considerations include the perception that low cost airlines provide an inferior service in comparison to traditional flag carrier and charter airlines that concentrate upon a differentiation competitive advantage. Technological considerations include the recognition that safety is a main consideration and cost aspect with all aircraft parts have a defined life-span before replacement is required. The replacement of prop aircraft to jet engines as part of fleet modernising as well as increasing safety requirements requires airlines to a continual review of their projected capital and maintenance allowances. Aesthetic considerations include the preference for one airline over another with Easyjet achieving a global focus due to broader activities in comparison to Ryanair. Both airlines provide the same class of service on all flights with emphasis upon low costs. Customer considerations include ease of on-line booking together with ticket costs combined with reliability of each airline operating the prescribed flights and minimal loss baggage claims. Against Easyjet, Ryanair has achieved significant short-term success in this category at the expense of generating a love/hate relationship with the public. Legal considerations include the regulatory constraints for passenger safety, security provisions, noise reduction, and environmental issues. In addition, to employment and aviation law, there is competition and liability legislation that restricts the operating activities of each airline. Environmental considerations include all regulatory constraints that may apply such as noise reduction, emissions and fuel efficiency, reduced energy, water and material consumption and air traffic congestion. Sectoral considerations include review of competitors and future regulatory considerations to enable a competitive advantage to be developed over rival airlines. In many respects review and implementation of Porters (1980) competitive forces provides the sector framework for analysing the intensity of competition to the profitability and attractiveness within an industry. The below five forces diagram illustrates the relationship between the different competitive forces (Porter, 1980). Adapted from Porter (1980) Five Forces Model Threat of new entrants low The preference for lower air fares generated the business opportunity for Easyjet and Ryanair to compete against traditional flag carrier and charter airlines. A high capital investment and legislation requirement combined with competition for additional airport slots/positions creates physical and financial barriers for new operators within the airline industry. Bargaining power of customers increasing Availability of constant information through the World Wide Web provides information of which airline has the cheaper fare and within an economic depression, the preference of the customer is generally towards the cheaper service provider. Bargaining power of suppliers strong but limited The price of aviation fuel is directly related to the cost of oil, as an individual company Easyjet and Ryanair does not have the power to alter this. The impact of the supplier depends on the availability of alternative suppliers and product substitutes (Dibb Simpkin, 2001). The more these airlines expands the more power it will possess over its suppliers Threat of the substitute products or services low There are no tenable threats from other modes of transport as distances are too great except from London to Paris, which can be reached by Euro Star. Current competitors Easyjet and Ryanair sustain a cost leadership advantage over all other operators including traditional flag carrier and charter airlines that utilise a differentiation rather than a low cost base. Overview: Both Ryanair and Easyjet have membership of the European Low Fares Airline Association (ELFAA) to assist with their equal representation within the airline industry. According to ELFAA (2009) statistics Ryanair provides 1,200 daily flights in contrast to the 1,000 daily flights provided by Easyjet. As a consequence of providing a higher volume of daily flights than Easyjet, the passenger load factor for Ryanair is lower at 81.4% according to the June 2009 ELFAA statistics. The passenger load factor of 85.2% for Easyjet identifies on average their passenger occupancy per flight which can be compared to the break-even point to identify the profitability of a specific flight (ELFAA, 2009). The below table provides an insight of each organisation in relation to their operations and company profile. RYANAIR EASYJET ESTABLISHED 1985 1995 ANNUAL TURNOVER 2171 million 2,362 million OWNERSHIP STRUCTURE Ryanair Holdings Plc Easyjet Plc NO OF AIRCRAFT 220 165 MAJOR FLEET TYPE BOEING A320 ;BOEING MAIN HUB LONDON, STANSTED LONDON, LUTON AIRPORT H/Q DUBLIN, IRELAND LONDON, UNITED KINGDOM NO OF ROUTES COVERED 950 400 NO OF COUNTRIES COVERED 147 COUNTRIES 28 COUNTRIES EMPLOYEES 5920 6107 PASSENGER VOLUME 60 MILLION 43 million PASSENGERS 5.12 million 3.53 million PUNCTUALITY FLIGHTS ON TIME 88% 80% ACQUISITION MERGERS FAILED TO ATTEMPT AER LINGUS ACQUIRED GB AIRWAYS EXTERNAL AUDITORS KPMG PRICEWATER COOPERS AIRLINE PASSENGERS PER EMPLYOEE 9679 6772 Source : Easyjet plc 2009 Ryanair plc 2009. Both the airlines follow the going concern basis in preparing their financial statements which have been certified by independent respective external auditor as being a true and fair status of the companys financial overview. The financial statements are prepared in accordance with the International Financial Reporting standards (IFRS) as adopted by European Union (EU) and effective from March 2008; as applied in accordance with the prevailing Companies Act legislation. Both airlines amended their accounting policy in 2005 from UK GAAP to International Financial Reporting Standard (Ryanair Plc, 2008 Easyjet Plc, 2008). Both airlines are successful in strategising for revenue generation with Ryanair maximising its profit through effective control of operating expenses in comparison to Easyjet. An example is Ryanairs effective fuel hedging policy which allows the airline to allocate fixed fuel costs without surcharge to the customer whereas Easyjet varies their fuel surcharge to the customer. The turnover for Easyjet is  £2,362 million (2008) from  £1,797 million (2007) which is a 20% increase in the turnover. Unfortunately due to the increased administration expenses incurred profit margins have not been maximised due to staff, marketing and fuel costs. These costs cumulatively represent a total cost increase of 28% in 2008. The final outcome was a decrease in profit margin from 11.23% from 4.66%, which trails far behind Ryanairs profit margin (Easyjet plc, 2008). Ryanair in comparison to Easyjet has increased its turnover to  £2,171 million (2008) from  £1,789 million (2007) which is a 13% increase whereas their administration costs increased by 13% from last year. This has led to Ryanair capitalising on the increase in turnover to profit (Ryanair plc, 2008). Airline passenger per employee for Ryanair is greater in comparison to Easyjet and reflects an optimum utilisation of resources. Ryanairs punctuality of flights on time is 88% when compared to 80% of Easyjet which demonstrates the operational efficiency of staff. The customer base has increased for both airlines with Ryanair achieving greater customer retention through market domination of the short haul flights. The addition of 16 more aircrafts through Easyjets acquisition of GB airways to 165 aircrafts amounted to a capital expenditure of  £118 million (Easyjet plc, 2008). Ryanair took the delivery of 30 new aircrafts bringing its total to fleet of 220 aircraft which amounted to  £97.1 million towards capital expenditure incurred for the year. Both the airline has an expansion plan which clearly shows in their adding of more aircrafts to their existing fleet. Ryanair has raised finance through the mortgage of their aircraft, with a book value of  £3,061.5 million as collateral security for finance generated through loans for purchase of next generation 737-800 Boeing aircrafts (Ryanair plc, 2008). Ratios The calculated ratio analysis establishes the relationship between stated totals within the Balance Sheet, Cash Flow Statement and Income Statement to establish the base of Evaluation for financial performance between Easyjet plc (Easyjet) and Ryanair plc (Ryanair). The three main areas of Strategic analysis include Profitability, Liquidity and Efficiency as well as Gearing and Investment. Consideration of the ratios reflects the performance of Easyjet in achieving strategic goals in comparison to Ryanair and other rivals. The ratios are in the table format and the implications are discusses below (Moon Bates, 1993). Ratios RYANAIR EASYJET 2008 2007 2008 2007 Profitability ROCE 9.20% 9.86% 5.78% 12.08% Net Profit Margin 16.17% 20.16% 4.66% 11.23% Goss profit margin 19.79% 21.09% 3.85% 9.57% ROSF 15.61% 17.15% 6.51% 13.22% Liquidity Current Ratio 1.53 Times 2.02 Times 1.56 Times 1.88 Times Acid Test Ratio 1.53 Times 2.02 Times 1.56 Times 1.88 Times Gearing Ratio 47.55% 44.47% 41.53% 39.19% Interest Cover Ratio 5.53 Times 5.09 Times 3.36 Times 6.70 Times Efficiency Ratio Earnings per share 20.67 22.56 19.84 36.61 Wage Cost (%) 10.51% 10.13% 11.14% 11.36% Other ratios Debtors Collection days 4.6 days 3.82 days 21.55 days 34.2 days Creditors Payment days 17.39 days 8.94 days 11.97 days 8.04 days Source: Easyjet Plc.2008 Ryanair Plc, 2008. The financial ratios provide a quick and relatively simple means of assessing the financial health of the organisation (Atrill Eddie, 2006). Evaluation: To complete the CORE model an evaluation of the two airlines has been prepared with a succinct summary of the main findings of the report including key recommendations identified. Both airlines have reduced profit margins with Easyjets profit margin gap is significant in compared to Ryanair. The decline in the profit is mainly due to an increase in administration cost as previously reported. The main contributing factor is 66% increase in the fuel cost when compared to 2007 whereas Ryanair had only 14% in increase in fuel cost due to its effective (73%) hedging policy on fuel charges. Neither airline released dividend payments for 2008. To reduce short-term earnings volatility Easyjet has put the following fuel and currency hedging positions in place: 66% of anticipated 2009 funding requirement is hedged at  £1.96/ £,an additional 5% of requirement are hedged with collars with average floors of  £1.73/ £ (of what Shinde per sq metre); 56% of 2009 capital expenditure relating to aircraft deliveries hedged at  £1.97/ £; 81% of anticipated 2009 euro surplus hedged at à ¢Ã¢â‚¬Å¡Ã‚ ¬1.24/ £. (Easyjet plc, 2008). Easyjet has also achieved a positive trend through reduced wage costs in comparison to Ryanair, which is a consistent consideration to maintain during an economic downturn to ensure competiveness with Ryanair. The operating profits for Easyjet were lower due to incurred advertising costs which were high in comparison to minimal advertising costs incurred by Ryanair and recorded as zero within the Income Statement. Online booking for Ryanair is greater than 90% which results in a small operating expense towards marketing. In contrast to Ryanair, Easyjet is applying a long term strategic approach to maximise revenue through advertising in the media and other channels to inform customers of their service value with competitive low fares. The acquisition costs for integrating GB Airways costed at  £12.9 million in 2008 which is going to reflect as an expense on next years income statement will assist Easyjet to increase profit margins. Easyjet has also increased ancillary revenue which will assist the company to mitigate its corporate risks through diversification of activities. Both airlines use the straight line method for calculating depreciation due to which Easyjet is showing 33% increase in its depreciation cost versus Ryanair 22% increase in depreciation. In relation to Easyjet the depreciation cost is high due to the acquisition of GB Airways with additional assets to be depreciated. The interest cover ratio, which is used to determine how easily either airline can pay interest on outstanding debt, was calculated by dividing each airlines revenue before interest and taxes with ratio. The interest cover ratio has declined dramatically for Easyjet by 3.34 times when compared to Ryanair which increased by 0.44 times. Thus the decline in Easyjets interest cover ratio can be explained through an increase in borrowing and combined with a dramatic decline in profitability in 2008. The lower the level of operating profit coverage, the greater the risk to lenders that interest payments will not be met, and the greater the risk to the shareholders that the lenders will take action against the business to recover the interest rate. Whilst Ryanair has its maintained a preferable interest cover ratio in comparison to Easyjet due to the profit  £429,664 achieved despite high borrowings. Easyjets Interest cover ratio was not as favourable due to their profit margins of  £910,000 despite achieving a preferred gearing ratio in comparison to Ryanair. The gearing ratio refers to the relationship between the amount of fixed interest capital and the amount of equity within each airline. Ryanair has increased from 44% (2007) to 47% (2008) primarily due to an increase of long term debts at 13% in 2008. When the value of debt capital is more than the value of equity as in Ryanairs situation the organisation is highly geared due to significant borrowings of  £1,814.57 increasing the risk of becoming insolvent in the medium to long term particularly if the economic downturn continues. Ryanair is raising finance for operational activities at the expense of an increased gearing ratio from 9.32% in 2007 compared to 39.96% in 2008 due to a decrease in profit margins (Ryanair Plc, 2008). Whilst, the gearing ratio for Easyjet increased to 41.53 % (2008) from 39.19 % (2007) this is primarily attributed to the acquisition of GB Airways. The future gearing for Easyjet will reduce due to consolidation of activities whereas Ryanair increased gearing is attributed to the intended acquisition of Aer Lingus, purchase of market shares and investment within operational activities. It would therefore appear that Ryanair have exhausted the potential to achieve future funding due to their current gearing ratio whereas Easyjet focus is towards consolidation of activities with an increase in profit margins anticipated in 2009/10. Easyjet have increased current liabilities in terms of aircraft maintenance cost and derivative financial instruments (hedging losses) that have generated a reduction in the current ratio combined with the acquisition of GB Airways. Whilst Easyjet can access significant cash and liquid investments to mitigate the risk of business disruption events of approximately  £863 million as at 30 September 2008 this excludes restricted cash of  £66 million for short-term liabilities. Whereas the cash balance for Ryanair has improved it is only through analysis of the ratios that a downward trend is developing due to an increase in current liabilities within derivative financial instruments. Ryanair utilises derivative financial instruments to hedge against losses by anticipation of future price increases concerning predicted variability in cash flows of an asset, liability or a highly probable forecasted transaction. A significant contribution for an increase in the current ratio for Ryanair is the increase in maturity of debts. Both Ryanair and Easyjet have a similar acid ratio due to absence of stock or inventories within their published balance sheets. The sales revenue per employee ratio identifies how each airline is utilizing their employee productivity with an increase generally reflective of efficiency with management establishing additional key performance indicators for staff to achieve. As previously detailed on the ratio comparison table, Ryanair has increased sales revenue per employee. Return on capital employed identifies the relationship between the operating profit and average long term capital invested and is significantly reduced for Easyjet due to long term liabilities yet this is recognised as a temporary phase following the GB Airways acquisition as well as undertaking airline operations within a competitive market. Achieving a profit within an economic downturn combined with adjustment of the hedge reserve will enable Easyjet to improve their effectiveness in 2009/10. In contrast, the capital redemption reserve for Ryanair has increased due to purchasing previously released equity shares as well as increasing long term liabilities with various financial institutions and established primarily on the basis of guarantees granted by Export-Import Bank of the United States to finance the acquisition of 107 Boeing 737-800 as a next generation aircraft. Whilst having less favourable ratios than Easyjet the funding provided by the Export-Import Bank of the United States for Ryanair is attributed to the bank emphasis to support the financing of U.S. goods and services (Trade Finance, 2004). It could also be suggested that the purchase of previously released shares by Ryanair was implemented to prevent another airline purchasing Ryanair shares due to their perceived vulnerability since the continued reduction of operational costs is not a sustainable activity. The Debtors Ratio identifies the effectiveness of a debt collection routine and within the competitive low fare airline industry, efficient ratios would be anticipated especially when the focus is towards cost reduction measures and borrowing finance is a chargeable activity. Ryanair has an excellent debtor collection policy with a minimal increase 0.78 days in 2008. This could also be reflective of the absence of available liquid reserves within a business to increase the availability of working capital and reduce finance borrowings. In contrast, Easyjet debtor ratio can be optimised from 12.65 days in 2008 to improve the availability of working capital within the business and limit borrowings. In comparison of the two airlines, Easyjet could improve their debtor ratio to seven days for efficiency purposes whereas Ryanair requires a constant focus on their debtor ratio analysis due to availability of working cash and requirement to minimal all non-essential costs. The Creditors Ratio provides an alternative perspective on how the two airlines consider their debt considerations. Ryanair creditor payment period is 8.45 days and therefore due to the volume of activities there is the availability of finance for other activities for an average of 8.45 days until payment/settlement is issued. Through utilising the credit payment period as a temporary borrowing option there is the perceived high risk that funds for payment could become committed and rather than generating revenue growth, funds are being juggled. In contrast the creditor payment period for Easyjet is 3.93 days restricting the availability of working capital to be paid to creditors rather than using it for day to day operations. In summary of the ratios selected for comparison the creditor and debtor ratios is reflective in general of how each airline is approaching their activities. Ryanair is quick to require settlement from debtors due to their restricted borrowing availability and uses a period of 8.45 days as an opportunity to generate additional revenue prior to settlement. Depending upon the volume of finance available within this period, Ryanair is anticipating the generation of additional revenue through hedging activities and received interest returns. In contrast, Easyjet is quick to make settlement as a creditor and less e