TigerAir Singapore Analysis - Free Essay Example

Sample details Pages: 8 Words: 2430 Downloads: 2 Date added: 2017/06/26 Category Transport Essay Type Case study Level High school Did you like this example? Table of Contents Analysis of the Campaign text Brand Analysis SWOT Analysis Actual Positioning Customer Analysis Competitive Landscape Analysis Market Trends Pestle Analysis a)Political Factor: b)Social Factor: c)Economic Factor: d)Legal Factor: e)Environment Factor: f)Technological factor: Marketing Communication Plan Tigerair Market competition Tigerair Marketing Strategy and the Competitive Positioning Tigerair Positioning Tigerair Marketing Goals and Objectives Tigerair Marketing Mix Tows Matrix WO Strategies ST strategies SO strategies WT Strategies Marketing Budget considerations Campaign metrics Recommendations Conclusion Bibliography . Don’t waste time! Our writers will create an original "TigerAir Singapore Analysis" essay for you Create order Analysis of the Campaign text Brand Analysis Tigerair is a Singapore based company that offers different traveling options at affordable prices. They claim consumer satisfaction excellence and they started their operations in 2004. The travelling organization offers flights up to 37 different destinations. In Asia they touch base with 12 countries (Holding, 2015). Within the previous decade Tigerair has won awards for customer service and lowest rates. Of course the lowest rates awards didnà ¢Ã¢â€š ¬Ã¢â€ž ¢t mean that quality at any point in time was effected. Among the local airlines in Singapore, Tigerair maintains the leading position in providing quality services to the general public. SWOT Analysis Tigerair holds a dominant position in the local industry due to its low cost rates. That means targeting the low cost segment they have attracted a huge customer base (Hauser Shugan, 2008). It has a huge network operation in all of Asia. The rate of growth for Tigerair is exceptionally high (Holding, 2015). However according to certain academics (Bisignani, 2006) when big business expand at an exponential rate they are the worst hit by financial crises. Hence Tigerair can be in a vulnerable condition if there is an economic crises. Right now Tigerair is offering flights for 12 destinations in Asia, however Asia is composed of 48 states. Hence if it thinks to expand its operations Tigerair should start thinking of starting their operation in other zones in Asia. This could be a big opportunity for them as residing in Asia, they know the industry and operational predicaments. Further as compared to outside Asia expansion it could effectively reduce the cost. Further some a cademics (Flores-Fillol Moner-Colonques, 2007) account that for regional airlines liaisons with other airlines can attract more customer and save costs. Hence Tigerair should be looking into that particular paradigm. As far as Threats are concerned, for airlines rising prices of Oils is always a concern according to many studies (Flores-Fillol Moner-Colonques, 2007) (Fu Zhang, 2010). Further right now Tigerair has a cost effective advantage but if another airline comes with the same cost structure or lower prices with same quality that could pose a stiff competition for the airline. Actual Positioning It should be noted that Tigerair poses itself to be an extremely cost effective travel. This means it tends to target two segments of the market. First are the business personals who usually seek many trips on low cost and second are the domestic travellers who look for affordable travel (Holding, 2015). Because Tigerair has marketed itself offering various destination in Asia and outbound it looks to be an attractive bet for all the consumers who are looking for a good travel experience at affordable rates. Customer Analysis As already discussed above due to the low cost paradigm Tigerair has attracted a significant loyal consumer base domestic and business personals for air travel on inexpensive rates. There is no specific age customer but the portfolio for Tigerair include people of various background and ages who seek affordable travel (Holding, 2015). According to academics ( Lederman, 2007) this is a big success for any organization to attract a diverse audience of various background. But critics (Bisignani, 2006) (Hauser Shugan, 2008) also maintain that attracting a consumer base based on cheaper rates can be easily deflected if another airline comes in the market with low rates and better quality schemes. In conclusion the relationship between cost and customer base is mentioned below; Competitive Landscape Analysis As the above figure explains Tigerair main competition is shaped due to the three factors above. Firstly the local traditional airline which have been existing for a significant time have been affected due to the low cost paradigm of Tigerair. Hence the traditional airlines which offer full service poses the immediate competition for them (Holding, 2015). The second ones are the international lines working in Asia through different routes and prices (Holding, 2015). Tigerair maintains it edge with the same low price model with good services. And lastly the international entry by Tigerair with result in international price wars. The immediate case was witnessed when Tigerair decided to launch its operations in Australia. Australian airline faced the pressure of the cliental as Tigerair offered low rates (Liang, 2005). Further as discussed in the swot analysis competition is enhanced and effected due to the following factors as well; Oil Prices Political Stability Weather Issues Barriers to entry in local and international sphere Economic conditions Tax rates by the government Inflation in keeping the price hikes Market Trends Pestle Analysis Political Factor: According to the studies (Liang, 2005) the political environment of Singapore is quite stable and that eventually helps any growing industry in the market. Academics (Liang, 2005) hold that political stability and no government disturbance keep the prices and the trust of the factor in check. Hence politically Tigerair has a good advantage Social Factor: Singapore has a very sound and intellectually mature public with above 92 % literacy rate (Mundi, 2015). That means that they have an informed public. There are both advantages and a downside for any industry for this factor. The positive point is the public is aware to make comparison so if they see Tigerair with a good service and low rates they will opt for it. However it should be noted they will always be on a look out for a better product in the market. Economic Factor: Over the past decade Singapore economy is in a good position (Liang, 2005). A good and sound economy actually let the market players to play with the prices. If the inflation rate of any country is stable cost effective prices can be easily be maintained (Zook Brunn, 2006). However in economic crises this cost effectiveness might harm and is difficult to be maintained over a longer period of time. Legal Factor: Cost effectiveness of any company results in low wages for the employees. That is because low cost prices of the product means the manufacturing cost for that particular service or product is considerably lower (WEN YEH, 2010). Tigerair seemingly has a challenge here, good wages is a good indicator for employee retention and hence Tigerair need to concentrate on this part. Environment Factor: According to the information on the sources (Holding, 2015) given out by Tigerair it seems that it is doing adequate steps to control its carbon print on the earth. However there is always a room for improvement. Technological factor: Scholastics understanding (WEN YEH, 2010) hold that continuous improvement is paramount for any company survival. Whether the business is currently doing well, it is of prime importance they look for other venues and services to keep the customer retention. Marketing Communication Plan Tigerair à ¢Ã¢â€š ¬Ã¢â‚¬Å" Market competition It can be seen that nowadays the competition in the airline industry is quite high and companies are striving to make their position in the market. From the airlines industry there are two main competitors of Tigerair. One is Air Asia and the others Jetstar. Due to this the marketing strategies that the competitors are adopting has a direct impact and influence on the Tigerairà ¢Ã¢â€š ¬Ã¢â€ž ¢s business. Usually it can be noticed that the airline industry are cost driven which results in less brand loyalty from the customer perspective. It is suggested that the Tigerair should adopt better pricing strategy in the competitive market so that they could maintain a stable market share in the industry. Tigerair à ¢Ã¢â€š ¬Ã¢â‚¬Å" Marketing Strategy and the Competitive Positioning Tigerair Segmentation Tigerair Targeting Tigerair à ¢Ã¢â€š ¬Ã¢â‚¬Å" Positioning Travelers Promo Lovers Shopaholic Value added seeker Value added seekers Low Price à ¢Ã¢â€š ¬Ã¢â‚¬Å" High Value Tigerair Positioning Tigerair is situated in such an area where so many other airlines are there such as the Air Asia, Air Indus and etc. The scope of the airline industry has immensely grown with the expanding new entrants of other Airline companies. However it has also increased the much need for the travel and tourism among the people who can afford it. Tigerair is looking realizing that their region is quite competitive. The below mentioned Porterà ¢Ã¢â€š ¬Ã¢â€ž ¢s model explains the five forces of competition, which Tigerair are currently facing is facing. Tigerair à ¢Ã¢â€š ¬Ã¢â‚¬Å" Marketing Goals and Objectives Creating Tigerair exclusive experience for its customers. Building Tigerair as a robust brand Opening of the new routes along with low costs Increasing the level of sales and revenues Increasing companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s market share Communication of the new Tigerair Corporate values and ethics Tigerair à ¢Ã¢â€š ¬Ã¢â‚¬Å" Marketing Mix The four Cs strategies and tactic plans that will be adopted by the Tigerair are as follows: Consumer Opening the new route for the consumers The new route will provide full services Cost Setting affordable pricing strategy: The carrier airways inclusive The average low cost Full service provision Convenience Online Smart Phone application induction Start of the Travel Agency office Online marketing and info availability Communication Provision of the 360 degree communication with the customers including the media gathering, advertisements such as TVC and you tube , Facebook Tows Matrix WO Strategies The company can expand and try to develop in such areas such as Laos and regions of Cambodia which will gain them the low cost for the employees. The profits that would be earned from here can be further invested in improving the experience of customer services. Tigerair can work closely along with the booking agents and also inauguration of improving the flights time such as introducing them during the prime time and with improved mechanism of booking system. Tigerair will the get to compete better with the competitors. It is noticeable that the ASEAN agreement has now opened the new opportunities for flying to more destinations and this will be adopted by Tigerair which will widen the horizons for more consumers from other regions as well. ST strategies Usually people are not aware of Tigerair. The company has to revitalize the marketing strategies which will be able to make them more into their low cost flights and the travelling to other destinations. Tigerair needs to reach out its networking capabilities with the hotels, car travelling companies and the companies such as the holiday homes which can become as a complementary services to their customers. SO strategies Tigerair has a strategic location situated in Singapore which can give them more good advances to open the new networks and affiliate themselves with the other big companies. The Tigerair has the low cost maintenance services and its operations that would ensure them to save their safety policies and the concern of their valuable customers. Tigerair should reach out to such customers in Asia who are willing to have less costly travelling experiences. ASEAN agreement will enable them to have unlimited travelers in their service. WT Strategies The company has no alternative if they wonà ¢Ã¢â€š ¬Ã¢â€ž ¢t be able to adopt better marketing strategies other than to shut their business or any other airline could acquire them. Marketing Budget considerations Campaign metrics The budget that is allocated for the Tigerair will consist of SGD 1,500,000 for one campaign in the set target markets that are identified as the main core for the Tigerair airlines. Our campaigns will be including the pulsing media flight during the holiday season commencing from December 2015 which will also maintain the online presence, outdoor and the new mobile campaign as well. The budget allocation is as follows: Television 750,000 SGD Print 350,000 SGD Outdoor 200,000 SGD Online 150,000 SGD Mobile 50,000 SGD Recommendations Tigerair should have their main focus on improving their customer experience through the better customer relations and services such as avoiding the delay and cancellation of the flights. Usually in the Airline industry the biggest issue is among the unreliable flights and this cause the companies at stake. Tigerair should look into better opportunities such as expansion in other countries most probably the developing countries. They need to give guarantee to their employers through job satisfaction which will raise their morale and provide better policy guidelines to the customers regarding the security and safety policy. Conclusion According to the analysis and the marketing communication plan that we have done it is visibly noticeable that the success of Tigerair can create a new hype in the airline industry. Moreover, the efficient marketing strategies and the operational performance is going to be the key root of Tiger air accomplishment. The company is itself quite successful and they have gained a good brand recognition worldwide in the past few years. The strategies and objectives that are proposed for Tigerair in this assignment can make them improve their structure and gain the impetus which they have engendered in the past five years among their set target market. Considering from the point of view of market research, focusing on the mix audit we can clearly predict that we are now able to identify and provide recommendation for the better performance and improved mechanism along with the developed effective marketing strategies. Bibliography Lederman, M. (2007). Do Enhancements to Loyalty Programs Affect Demand? The Impact of International Frequent Flyer Partnerships on Domestic Airline Demand. The RAND Journal of Economics, 1134-1158. Retrieved from https://www.jstor.org/stable/25046356 Bisignani, G. (2006). Airlines. Foreign Policy, 22-24, 26, 28. Retrieved from https://www.jstor.org/stable/25461987 Flores-Fillol , R., Moner-Colonques, R. (2007). Strategic Formation of Airline Alliances. Journal of Transport Economics and Policy, 427-449. Retrieved from https://www.jstor.org/stable/20054029 Fu , X., Zhang, A. (2010). Effects of Airport Concession Revenue Sharing on Airline Competition and Social Welfare. Journal of Transport Economics and Policy, 119-138. Retrieved from https://www.jstor.org/stable/40600019 Hauser , J. R., Shugan, S. M. (2008). Defensive Marketing Strategies. Marketing Science, 85-87. Retrieved from https://www.jstor.org/stable/40057247 Holding, T. A. (2015). Tigerair. Retrieved fro m Tigerair: Over 80 destinations, 140,000 hotels, 30,000 rental car locations: https://www.tigerair.com/sg/en/ Liang, M. (2005). Singapores Trade Policies: Priorities and Options. ASEAN Economic Bulletin, 49-59. Retrieved from https://www.jstor.org/stable/25773843 Mundi, I. (2015). Index Mundi. Retrieved from Index Mundi: https://www.indexmundi.com/g/r.aspx?v=39 WEN , C.-H., YEH, W.-Y. (2010). Positioning of International Air Passenger Carriers Using Multidimensional Scaling and Correspondence Analysis. Transportation Journal, 7-23. Retrieved from https://www.jstor.org/stable/40904818 Zook , M. A., Brunn, S. D. (2006). From Podes to Antipodes: Positionalities and Global Airline Geographies. Annals of the Association of American Geographers, 471-490. Retrieved from https://www.jstor.org/stable/4124428

Essay on Social Construction of Race - 1342 Words

Social Construction Race Race has been one of the most outstanding situations in the United States all the way from the 1500s up until now. The concept of race has been socially constructed in a way that is broad and difficult to understand. Social construction can be defined as the set of rules are determined by society’s urges and trends. The rules created by society play a huge role in racialization, as the U.S. creates laws to separate the English or whites from the nonwhites. Europeans, Indigenous People, and Africans were all racialized and victimized due to various reasons. Both the Europeans and Indigenous People were treated differently than African American slaves since they had slightly more freedom and rights, but in many†¦show more content†¦Their powers were no match against the Europeans because they had muskets and other firearms while the Native Americans and Africans only had spears to fight with. 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Differences Between Rock and Pop Music Essay Example For Students

Differences Between Rock and Pop Music Essay According to the Merriam Webster website, music is the science or art of ordering tones or sounds in succession, in combination, and in temporal relationships to produce a composition having unity and continuity. Music has many genres to choose from and to fit to all musical tastes. Music, being part of everyone, lives independently of culture, religion or nationality, and is a universal language. Music has the power to take you to the past and make you remember past situations or someone special. Two of the biggest musical categories in today’s world are rock and pop. Those styles of music use the same instrumentation, the number of musicians on stage are similar, and so is the energy that they use to perform to their fans. However, they are different in many aspects and tendencies. How the lyrics are made, how long the music of the two styles of the bands last and how the bands appear and start their success are some differences between these two genres of music. Rock and pop have similarities that make the music confused between each others styles. Rock and pop bands use the same amount of instrumentation on stage, which is usually two guitars, one set of drums, and one bass guitar. Another similarity is the number of musicians on stage which includes: vocals, guitar players, bass player, drum player, and back vocals. The last similarity is the way both style bands perform. Both styles perform with a strong stage presence, being very active on stage. Some examples of bands that are pop bands and are confused as rock bands are: ‘N Sync, Backstreet Boys, and Justin Bieber. While there are similarities between the two genres, there are also many differences. First major difference between rock and pop genre bands are the way they make their music. Most of the Rock bands write their songs about anything they care about with no censure. Rock songs talk about love, emotions, sex, drugs, life, death, or suicide and the songs have a deep meaning for the musician who wrote and for the public, who relate the music with their own lives. A good rock song last forever, and it has been played on radio stations for years. On the other hand, pop songs usually are made for record companies or someone writes silly songs and then the bands or the record companies buy it to make a profit with a song that goes to the top of the billboards for two or three months and then disappears in the same way that it appeared. Pop songs talk about a crush or something with no importance. Pop songs are seasonal, while rock songs last forever. The second major difference is how long the bands of the rock and pop genres last and make their success. Rock bands make songs to last generations. Led Zeppelin, Jimi Hendrix, Janis Joplin, Beatles, Nirvana, and The Doors are some of the bands whose songs are played every day. Rock bands never die and contaminate every generation on their path. Pop bands are made to produce profit and for temporary success. A pop band lasts three to four years and then disappears without notice. Pop artists are made in studios and with an image set up to attract a target public. A pop artist sometimes doesnt even sing well, but has a pretty face and dances well, attracting fans and money. It is hard to think of a pop band that makes great success and stays on the top for a long period of time. .u0e3a694fcb679212c2ad32c9e7fdcb9e , .u0e3a694fcb679212c2ad32c9e7fdcb9e .postImageUrl , .u0e3a694fcb679212c2ad32c9e7fdcb9e .centered-text-area { min-height: 80px; position: relative; } .u0e3a694fcb679212c2ad32c9e7fdcb9e , .u0e3a694fcb679212c2ad32c9e7fdcb9e:hover , .u0e3a694fcb679212c2ad32c9e7fdcb9e:visited , .u0e3a694fcb679212c2ad32c9e7fdcb9e:active { border:0!important; } .u0e3a694fcb679212c2ad32c9e7fdcb9e .clearfix:after { content: ""; display: table; clear: both; } .u0e3a694fcb679212c2ad32c9e7fdcb9e { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .u0e3a694fcb679212c2ad32c9e7fdcb9e:active , .u0e3a694fcb679212c2ad32c9e7fdcb9e:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .u0e3a694fcb679212c2ad32c9e7fdcb9e .centered-text-area { width: 100%; position: relative ; } .u0e3a694fcb679212c2ad32c9e7fdcb9e .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .u0e3a694fcb679212c2ad32c9e7fdcb9e .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .u0e3a694fcb679212c2ad32c9e7fdcb9e .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .u0e3a694fcb679212c2ad32c9e7fdcb9e:hover .ctaButton { background-color: #34495E!important; } .u0e3a694fcb679212c2ad32c9e7fdcb9e .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .u0e3a694fcb679212c2ad32c9e7fdcb9e .u0e3a694fcb679212c2ad32c9e7fdcb9e-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .u0e3a694fcb679212c2ad32c9e7fdcb9e:after { content: ""; display: block; clear: both; } READ: Music Essay SummaryFor a pop band, five years is considered a really long career. The last but not least difference is how the rock and pop bands are created and start their success. Rock bands usually have a tough path to their success, starting in a garage and playing in the local bars and in small band competitions. They gain fans along on the way, making them famous in a geographic area then going national. On the other hand, pop bands start their success with paid spaces on the radio time and targeting young fans. A pop band starts their success in the top of the billboards, decreases in success and then disappears. The record companies choose what fashion is at the time and launch a product set to be extinct soon. In conclusion, rock and pop have more differences than similarities. The number of people on stage, how they perform on stage, the kind of instruments played and the speed of music is very similar in the two styles, but how the lyrics are made, how long the music of the two styles of the bands last and how the bands appear and start their success are the differences. It is good to hear good music independently of genre, but it is always good to sit and hear an old and good rock and roll song.

Wendys Market Research

Background Study A business enterprise is highly affected by its environment that includes economical, marketing, social, and locality factors. All these factors are collectively regarded as the business environment. Business environment is considered as all the external factors that affect the performance of an enterprise in one way or the other.Advertising We will write a custom report sample on Wendy’s Market Research specifically for you for only $16.05 $11/page Learn More The economical factors include the economical status of the region where the business is to be located. Other economical factors that are imperative to factor in while considering an appropriate niche to start up a business enterprise are the capital market as well as the social-economical factors. It is important for a businessman to visualize the economic factors that will affect the business and anticipate appropriate market situations. This will help the business to rece ive maximum returns with minimal costs. The social environmental factors are also very significant for the success of any business. The social aspects of a region determine the values of the society that in turn affect the business enterprise greatly. The most vibrant sociological considerations include cultural orientations, customs as well as mobility of labor. Sociological factors affects the work culture, team work as well as the goods and service to be produced that are highly affected by peoples attitudes customs and cultural values fashions. The social cultural factors determine the code of conduct the business should adapt, the trade unions to follow. Failure to observe the right code of ethics may lead to poor performance of a business enterprise. In some cases, unethical practices such as paying unfair wages or black market may result to intervention measures being taken against such a business enterprise by some government agencies. The marketing environment is also a ver y important factor to consider in order succeed in any business venture. The company should adapt appropriate marketing strategies in order to establish a strong brand in the targeted region. Good position of a firm’s products and services is imperative for the success of the business enterprise. This can be ensured by appropriate differentiation of products and hiring highly skilled workforce that is regularly equipped with appropriate knowledge and skills (Lopez, 2006).Similarly, the shareholders should invest in strategic locations in order to realize returns from their investments.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Densely populated areas and areas that are situated along busy highways are appropriate locations for restaurants investments (Chen, 2003). Therefore, the Wendy’s restaurants should identify such a niche to extend its operations to. Problem Statem ent The Wendy’s Restaurant is facing a lot of competition from its rival brands such as McDonald and Barger King Restaurants among others. The restaurant is therefore in a process of opening new restaurants as an expansion strategy to help it enjoy the benefit of economies of volume. This will help it cut down its costs of operations in order to help it reduce the prices of its menus which are slightly higher than the prices that are charged by McDonald and Burger King Restaurants. Literature Review Effective marketing process is very important for the success of any company. The branding process helps people to form a positive perception towards a company’s products and services. The marketing process helps a business enterprise to close up the gap between what a firm promises and what it delivers (Treacy Wiersema, 1997). A strong brand is the brand that is successful in delivering what it promises its customers. One important factor that a firm should consider while branding is establishing a competitive edge over its rival brands. The only way that a company can be able to establish a competitive advantage over its competing brands is by strategically positioning its brands (Sharp Dawes, 2001). A sure method of positioning the products of a company is by the use of differentiation process. The differentiation process helps an organization to differentiate its products or services from the others in order for them to be in a position to stand out more effectively. The company can differentiate its products/services by the use of Unique Selling Proposition (Piana, 2003). This strategy involves the use of advertisement to relay a product’s/service differentiation. The differentiation process is known to cause monopolistic competition. This gives such a company a competitive advantage since monopolistic competition requires the substitute products from the rival brands to be perfect substitutes.Advertising We will write a custom repo rt sample on Wendy’s Market Research specifically for you for only $16.05 $11/page Learn More A company can differentiate its products through unique packaging or an advertizing theme. Through this process, the company does not necessarily require to alter its product. Thus, the differentiation process occurs as a result of the buyer’s perception of a difference. In some other cases the differentiation process is functional. Through this process differentiation results to a change in the quality that is often accompanied by a rise in the price, a change in functional features or design (Wilsons, 2007). The differentiation helps a brand to enhance its sales by overcoming direct competition. This is because as a product/service becomes more unique, categorization decreases and thus draws fewer comparisons with substitute products from competing brands. An effective product differentiation helps a brand not to compete with substitute products base d on the prices, but on other factors such as distribution and promotional strategies (Porter, 1998). The differentiation process is a very effective strategy in the restaurant industry which is very competitive. The use of effective differentiation is the reason that has helped restaurants such as McDonald, Burger King and Wendy’s flourish well despite the thriving stiff competition (Treacy Wiersema, 1997). The success of any business is highly determined by its location. The successes of restaurants are highly affected by the location of the restaurants. The location of a restaurant determines many aspects of the hotel. For instance, the location of the restaurant will determine the type of menu to be offered. Customers from various cultural backgrounds differ in their dieting habits. The Asian, white and blacks differ greatly in type of foods that they like. While the Asian prefer a lot of spices in their foods, the white and especially the Americans prefers fasts foods, while the African likes heavy foods.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Therefore, identifying strategic locations will determine the type of menu to offer to your customers depending on their cultural orientations. The location of the restaurant will also influence the number of customers who will visit the restaurant. The restaurant should be located in those areas that are densely populated in order to attract many customers. Alternatively, the restaurant should be located in an area where many people pass so that to increase those people that visits it (Matere, 2003). A restaurant should be located in an area that has enough space for parking. Adequate parking space will facilitate the number of customers that will visit the hotel. If the hotel does not have sufficient parking space, it should ensure that where it is located there is a nearby public parking. Since most restaurants are located along highways and free ways. The restaurants owners should make sure they locate their restaurants in places where they are easily accessible. Locating hotels in areas where they are concealed hinders the number of people visiting such hotels. New restaurants should also be located in areas where they are highly visible. That is the reason why property prices in down towns and developed places are higher than other areas (Kotler Kevin, 2006). The pricing of the Menu is another important factor to put into consideration when designing the menu. This helps to determine the amount of money to charge in order to realize a profit. The costs of food and food proportions are two vital methods that help in the pricing process (Tabby, 1999). Food cost is the menu price of a certain meal in relation to the cost of the food used to make that dish. The amount of money one uses to pay for the food determines how much you will sell the food. It is advisable for a new restaurant to make sure that it charges its customers a price that relates with the prices charged by other local restaurants (Lin, 2003). Mostly the prices of menus should be approximat ely 30-35% above the cost of foods. This pricing is reasonable since one has to consider other factors involved such as paying the employees and paying for other bills such as electricity and water bills. Portion control is another factor that determines the success of any restaurant. Those restaurants that are successful are experts in handling food portions (Mealey, 2004). Mergers, acquisition and franchise are appropriate strategies that restaurants should adapt to extend their operations in order to maximize their returns (International Franchise Association, 2006). This study will entailed both primary and secondary research methods. The secondary research involved a review of articles, Journals and books that discuss about running and managements of restaurants. On the other hand, the primary research will be a survey. The survey will include sampling a number of people that will help in realization of the research objective. The number of those people that will be sampled wil l be 50. The people that will be interviewed will consist of those people that resided or work close to the region in the United State where the Wendy’s restaurant s aspires to extend its operations. The researcher will use random sampling in order not to be biased. This will help to increase reliability of the research outcomes. The researcher will first conduct a pilot study prior to the actual research in order to help him/her to eliminate any errors that may be present in the questioners anticipated to be used. Objectives The main objective of the research is to establish the viability of the Wendy’s expansion in the desired niche. Specific Objectives To find out whether majority of those people that live nearby take their foods from home or restaurants. To find out whether the people around are comfortable with the quality of meals and services they receive from the local restaurants. To find out the type of meal those people prefer. To find out how much money th ese people spend on their meals daily Research Questions Do you prefer taking your meals from home or in restaurants? Are you happy with the amount of money you pay for your meals? What type of meal do you take for breakfast, lunch and supper? How much money do you spend on your meals? The researchers will use both closed ended and open ended questions as its instrument for collecting the required data. The closed ended questions will help the researcher to limit the respondents to specific questions. On the other hand, the open ended questions will help the researcher to get new insight in the research which he/she could have ignored (Cooper Schindler, 2003). Ethical Considerations The respondents will be assured that the information that they will be given will only be used for the purpose of this research only. In addition, they will be guaranteed about the confidentiality of the information they will give. Anticipated Results The researcher is likely to find that approximate ly 40% of those people that he will interview prefer taking their meals from restaurants. The researcher is also likely to learn that more than 50% of those people that will interview are not happy with the quality of meals and service they receive from the local hotels. The large number of dissatisfaction is likely to result because the place where Wendy’s intends to extend to is not served by well established restaurants such as Wendy’s, McDonald, or Burger King that have high quality meals and services (McDonald’s Holdings,2006). Because the area is mostly habited by middle class group, the researcher is likely to identify that the respondents spends approximately $ 300 per day for their meal. List of References Chen, Y. D., 2003, Food and Beverage Management Theory and Practice, Taipei: Yang-Zhi Culture. Cooper, D. R. Schindler, P. S., 2003, Business Research Methods, NY: McGraw-Hill.  International Franchise Association. 2006. Web. Kotler, P. Kevin, L., 2006, Marketing Management (12 Ed.), New Jersey: Prentice Hall. Lin, Z. M., 2003, Quality stems from customer’s needs, Journal of quality, 39(9), 51-52. Lopez, J., 2006, The Importance of Workforce Trainings, New York: Prentice Hall Matere, J., 2003, Strategic Location for Restaurants, London: Cambridge Press. McDonald’s Holdings, 2006, Management Strategy. Web. Mealey, L., 2004, How to Price Your Restaurant Menu, London: Cambridge University Press. Piana, V., 2003, Product Differentiation, New York: Prentice Hall. Porter, M. E., 1998, Competitive advantage, NY: The Free Press. Sharp, B., Dawes, J., 2001. What is Differentiation and How Does it Work? Journal of  Marketing Management, 17, 739-59. Tabby, M., 1999, Restaurants, New York: Prentice Hall. Treacy, M. Wiersema, F., 1997, The Discipline of Market Leaders: Choose Your  Customers, Narrow Your Focus, Dominate Your Market, NY: Perseus Books Group. Wilsons, P., 2007, Strategic Management, New York: Oxford Uni versity Press. This report on Wendy’s Market Research was written and submitted by user Angelica Pennington to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

The International Free Trade in NAFTA Countries

Introduction Economic integration has been achieved by Canada, Mexico and United Sates of America through international trade activities. The countries involved have made it possible by removing barriers for the movement of goods and services.Advertising We will write a custom essay sample on The International Free Trade in NAFTA Countries specifically for you for only $16.05 $11/page Learn More The trading environment is characterized by â€Å"trade agreements, trade policies and trade barriers† (Bergstrand, 1989). â€Å"The North American Free Trade Agreement is an extension of free trade agreement that existed between the US and Canada in 1988. The United States law is considered as a congressional-executive agreement under international law† (Bergstrand, 1989). NAFTA is the world’s biggest free trade area. It has enhanced the economic growth for the citizens and improved their living standards. Furthermore, this trading block is recognized by the world as a stable foundation that enhances the prospect development of the countries involved (Arndt Alex, 2001). There were doubts as to the effect NAFTA had on the level of employment in the United States. Due to the level of globalization achieved, the American companies would gain by moving the production units to Mexico, which has plenty of cheap labor. â€Å"This would encourage movement of capital from the United States to Mexico and Canada† (Arndt Alex, 2001). Canada was seen to offer new market for American goods and vice versa (Arndt Alex, 2001). Effects of economic Integration The integration has both positive and negative impacts on the environment. It has brought up reduced poverty levels in some parts of Canada and strengthened competitive capacity of the member states. There has also been a notable increase in the Gross Domestic Product of both the countries, especially after the economic crisis of 1994-1995. This activity has further given birth to a breed of elite business leaders (Arndt Alex, 2001). Even though Canada was not severely affected by the integration, Mexican farmers felt reduction in food prices. This is attributed to cheap imports from United Sates. The workers found themselves unemployed after termination of their duties in the manufacturing industries as well as assembly lines. In addition to this NAFTA has led to the high level of inequality in Canada, United States and Mexico (Arndt Alex 2001). Economists argue that such integration has not been able to reduce poverty substantially in Mexico and they operate on an economic roundabout. â€Å"In order to benefit from this integration, Canada has had to provide tax breaks to Americans, fewer environmental regulations and reduced social security payments† (Arndt Alex 2001). The situation was quite tough in Mexico as the employees would not be allowed to form or join unions (Arndt Alex 2001).Advertising Looking for essay on business ec onomics? Let's see if we can help you! Get your first paper with 15% OFF Learn More NAFTA’s Influence On trade â€Å"The globalization of activities between the three countries did not lead to change of trade, except from the few industries that included textile and apparel; in this case, the laws were formulated to favor the United States firms which preferred the Mexican manufacturer to Canadians† (Bergstrand, 1989). â€Å"The World Bank report indicated that NAFTA imports were of roughly the same amount to non-NAFTA exports† (Bergstrand, 1989). On Agriculture The three nations did not negotiate on how to handle agricultural matters. They only signed separate agreements. â€Å"Canada signed an agricultural agreement with the United States, putting in tariff quotas and noteworthy restraints on their products† (Bergstrand, 1989). Mobility of persons â€Å"According to the Department of Homeland Security Yearbook, in fiscal year 2006, 64,633 Cana dians got access to work in the United States courtesy of NAFTA† (Burfisher, Sherman Karen, 2001). Canadian authorities estimated that 24,830 United States citizens had been given permission to work in Canada as at December, 2006. Most of them had gained access through NAFTA (Bergstrand, 1989). Controversies and Criticism Some of the controversies in the North American Trade Agreement include: Dispute in Canada The Canadian government cannot cap the sale of Mexican and American products in the country at any one given moment. This implies that the government can control its trade even in the future. This provision is applicable to Canada’s natural resources like rivers and lakes. â€Å"This creates fears as to the possibility of damaging Canadian ecosystem and water supply† (Bergstrand, 1989). Other doubts originated from the negative effects NAFTA has on the law making process in Canada. Additive import was barred by the federal government of Canada. Under the NAFTA agreements, an American Company filed a suit arguing its additive was not a danger to the health of human beings and animals. It argued that the ban was causing huge damages to their company.Advertising We will write a custom essay sample on The International Free Trade in NAFTA Countries specifically for you for only $16.05 $11/page Learn More â€Å"Furthermore, an argument on Canada’s resolution to enforce a duty of 27 percent on lumber imports on Canadian softwood, was to end being resolved Stephen Harper, the new Prime Minister of Canada who negotiated with the United States† (Burfisher, Sherman Karen, 2001). A resolution was achieved July 1, 2006. In addition, domestic resistance in Canada led to shelving the settlement policy (Burfisher, Sherman Karen, 2001). Canada introduced numerous motions with the view to removing the duty. The US responded to their loss of the plea from NAFTA panel, arguing they were not satisfied by th e decision. â€Å"This had no effect on the countervailing anti-dumping and duty orders† (Helpman Paul, 1985). Business Integration It was a challenge to enjoy the mutual gains among the three states because of war for the first four years. At the end, the huge differences arose in the worldviews towards NAFTA. Some of the difficulties faced by the governments before rational talk of NAFTA could be made possible include: â€Å"The level of understanding the United States had with the world; the governments had to wait for normalization with one another, with much attention to United States change in foreign policy agenda. Secondly, the view of the population on Canada and Mexico enabled countries were to be terms with the change in order to connect with the United States. Finally, economic dissimilarity posed another major challenge as all the three nations had their own share of economic inequalities† (Burfisher, Sherman Karen, 2001). As globalization process took i ts guided shape, NAFTA presented win-win conditions to the three nations with its own problems too. It has enhanced international trade and ensured business and market integration is achieved. Bilateral alternatives between Mexico and Canada indicated that massive cooperation resulted between the south and north of NAFTA (James Masaru, 2000). Recently, they have shown significant cooperation and progress. The mention of Fox government also builds up tension among the member states. Problems arose especially in Unite States as it sought to match its foreign policy with that of other countries. This finally gave rise to mutual understanding among NAFTA members.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More It is worth noting that such activity concern the two countries, America and Canada. In the year 2006, they both held their federal elections. This creates two aspects of difficulties. â€Å"The triumph by Canada’s conservative party can be interpreted as a swing backs to the United States of America, hence a failure to the Mexicans. If Mexico won, the North America’s interest could decrease drastically† (James Masaru, 2000). The US and Canada have enhanced their cultural accommodation for the past two decades. This has been a daunting task but finally it is boring fruits as more employees freely move to work from one country to another. Market Integration Market integration is defined as trade between different countries. â€Å"It arises when the flow of goods and services, factors of production outside the country or between the trading countries is founded on same terms and conditions as within the countries† (Helpman Paul, 1985). Canada is able to t ake advantages of economies of scale, competition and trade allowing the customers to benefit from reduced prices of various products (Helpman Paul, 1985). Conclusion The international market in NAFTA countries has changed since its inception. It has mapped the economic, social and political growth of the Mexican, American and Canadian people. According to Helpman Paul (1985), the triumph in the agriculture trade between Canada and US can now be measured, which is beneficial in building the relationship between the two countries and their neighbors in the future (Bergstrand, 1989). References Arndt, S., Alex, H. (2001). North American Trade after NAFTA: Part I, Part II, and Part III. Claremont Policy Briefs . Bergstrand, J. H. (1989). The Generalized Gravity Equation, Monopolistic Competition, and the Factor Proportions Theory of International Trade. Review of Economics and Statistics . Burfisher, M. E., Sherman, R., Karen, T. (2001). The Impact of NAFTA on the United States. Jo urnal of Economic Perspectives , 15:125-44. Helpman, E., Paul, K. (1985). Market Structure and Foreign Trade. Cambridge: MIT Press. James, W. E., Masaru, U. (2000). NAFTA Trade with East Asia: Rules of Origin and Market Access in Textiles, Apparel, Footwear, and Electrical Machinery. ASEAN Economic Bulletin . This essay on The International Free Trade in NAFTA Countries was written and submitted by user Giselle Marsh to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

TRAVELCOMFORT BUSINESS PLAN

TRAVELCOMFORT BUSINESS PLAN Executive Summary TravelComfort UK, Incorporated is a start-up travel agency that specializes in small and escorted luxury touring packages for its selective clients.Advertising We will write a custom essay sample on Travelcomfort business plan specifically for you for only $16.05 $11/page Learn More The agency is strategically located in Hill Gate Notting, London- to better serve its customers across the UK. This location has of late experienced rapid growth in the number of discriminating or selective luxury tour clients. TravelComfort is a partnership between 4 experienced travel scholars named as Josh Foster, Rochelle Night, Mike Manning and Joshua Awozele. The first 2, other than sitting on the board are also the company’s Chief Executive and Operations Manager respectively. The last 2 do not have additional managerial roles. The first 2 have had extensive training in travel business, especially in sales and marketing to oversee the operations of this new venture. Their knowledge will thus be useful in this starting period. Other than the 2 managerial staff, and the additional 2 board members, the company intends to use an independent sales force of 6 individuals to keep its overhead expenses low hence increasing its sales returns. The owners feel that this will be the surest way of maintaining profitability and its subsequent expansion in this highly competitive travel service industry.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More In addition, the company will make use of the 4 marketing mix to market itself to its customers as well as establishing best relationships with agent travel firms. More so, to ensure that it achieves its profitability and expansion outcomes, the management intends to source for a long-term loan of UK pounds 60,000 from Standard Chartered Bank to finance its required start-up capital of appro ximately  £120,000. The company is characterized by a strong commitment to customer value, service and specialized luxury tour needs; characteristics that set it apart from other UK travel agencies thus constituting its best attractions and unique selling points. Market Research of the UK travel industry A research article by Tassiopoulos highlighted that though there had been a major trend towards responsible and ethical consumptions across UK’s consumer markets, the demand for services in the UK travel industry had risen to match those in other sectors, with tourism given as an example.1 This increase has also coincided with increases in consumer expectations across the country. To expound on this, this plan went ahead to stress that in each holiday, a significant and a growing number of travellers in the UK were looking for better and high quality products. As such, the experiences provided by tour and travel firms should be able to enable the traveller’s access à ¢â‚¬Ëœreal’ living cultures within or without their nations. Nonetheless, previous researches highlighted that though UK travellers had accustomed themselves to taking shorter trips in most cases, at the same time, they expected to derive more value from such short trips.2Advertising We will write a custom essay sample on Travelcomfort business plan specifically for you for only $16.05 $11/page Learn More A scholarly study by Pfister and Tierney summarized the above notions by arguing that nowadays, holidays spender’s across the UK preferred ‘real’ holidays that were characterized with a lot of authenticity.3 These expectations contradicted the scenarios dating 10 years back in this same country. Supporting the above frameworks, Page and Connell combined their findings to assert that in the UK, there has emerged a growing interest in the pursuit of more adventurous forms of travel agencies.4 For instance, the demand for the market has of lately shifted to those agencies that offer specialized travel and tour services such as land based expeditions of the nature of the Graham Land as well as skiing activities. On the other hand, drawing inferences from the Independent on Sundays, the authors of this plan established that the recent economic recession has been a blessing to the UK tour travel industry. This is for the reason that the ever increasing economic recession has increased costs of overseas holidays by a high of 10%- 7% more than domestic holidays.5 This in return has meant that more Britons have preferred to spend their holidays in their country as a budgetary precaution. TravelComfort will strategically position itself to maximise on this great opportunity. To add, Hogson went ahead to review statistics that also revealed that the travel and tourism industries across the UK had for years pursued profits within flexible, unrestricted and fast-moving environments.6 This, according to Robinson had led to most travel agencies failing to establish monitoring systems and formal objectives. They instead chose to seize each opportunity as it came their way without considering its long term effect.7Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More To address this, TravelComfort has established and stated its mission statements. This will in turn assist it to achieve its outcomes since the mission statements will be used as statements of guidance and reference. Specific Target Market The stiff competition in the UK tour and travel industry has created the impetus to clearly understand the specific and the ever changing needs of the differentiated customer groups.8 TravelComfort has studied the market and identified UK citizens especially the retired or working couples who would like to go for adventure as constituting its key target market. Other than those, the company will emphasis on corporate travellers (business conference travellers) and any other travellers from any part of the world. Unique Selling Points These were comprised by the following brief features, concepts and benefits that our clients were happy to associate with our branding. In line with the above, TravelComfort has positioned itself to cater for speciali zed clientele group in the UK. As such, the company will offer small-group, budgetary and luxury modes of adventure travel. These will mainly target UK clients with a small global market presence also targeted in the plan. TravelComfort seeks to have a competitive advantage over its rivals by small but more exclusive packaged tours. These will enable our few clients to receive immediate personal or special attention from our travel hosts. As we expand, we intend to cultivate this niche of one-on-one contact to catch and retain on all our potential clients. The company will also provide accurate, first-hand and instant information concerning all its services to its customers. This can be achieved through mass-messaging or emailing service to registered clients. Market size/growth trends According to the statistics by the UK Office for National Statistics, the financial year ending February 2011 saw a total of 84.6 million travellers visit or depart from UK (visitors to UK were 29.6 m illion while visits abroad by the region’s citizens was 55.0 million).9 This number of travellers a combined drop of 6% compared to the previous year. The reason cited for the drop in the number of visitors was the bad weather. Table 1 showing the number of visitors entering or leaving the UK (Souce: UK Office for National Statistics, 2011). Despite the reduction in the number of travellers, the projected market growth for the UK travel industry stands at 10%. Of the total market size, TravelComfort aims to garner at least 5% of the market by the end of second year of operation. Competitive Environment At present, competition has been intense in the retail travel agency industry in Europe.10 As such TravelComfort will face stiff competition from both external and internal travel agencies. In the case of internal competitors, the company will compete with Thomson Travel Group-UK’s largest tour operator and Going Places-UK’s second largest travel agency.11 Other than the two, internal competitors will also include online travel agencies such as eDreams, Ebookers, Expedia, Iglue, LastMinute and Key2Holidays amongst others. External competitors will comprise of CN Travel Touristic Group- Germany’s largest travel agency and TravelPlanners from USA amongst others. Of late, the UK travel industry has been characterised by constant fluctuations both in service quality and sum of service providers.12 We intend to capitalize on this and broaden our market share. The competitive edge of our company will see us attract and retain customers through provision of up-to-date and accurate information. The company will also offer competitive discounted prices to win on repetitive customers. More so, the company will make use of IT and avail online tickets to its clients. To achieve on the above, the company will rely on the efforts of its experienced founders and personnel. These have great experience in luxury retailing, offering travel, achieving high-net-worth and offering and providing personalized services. Company Description TravelComfort is a full-service travel agency offering full-line travel planning for all its customers. The agency links all business, recreational and adventure travellers with travelling and accommodation firms. As was earlier highlighted, this agency is a partnership between Josh Foster, Rochelle Night, Mike Manning, and Joshua Awozele-who cofounded the agency in January of 2012. The company is located at Office Complex, Nottingham Hill Gate- London. The objectives of the company are as follows: To achieve a profitable status within the first year To garner a 5% market share within the first 2 years To increase its workforce to 20 by the second year (January 2012) and appoint a full-time Business Manager to enhance sales operations Expand the company’s corporate sales by  £ 85,000 each month. This is to happen by the 6 month of the agency’s operation. Services provided The compa ny will provide primary travel services that include, but unlimited to, hotel arrangements, bus and airline ticketing, car rental arrangements, conference planning, charter and tour services, student or employee-tour services and vacation packages. If these services are sold online, the agency will attain a sales margin of 10%. However, this is expected to rise to 15% if they are sold through agents. Marketing Plans/Strategies The company will make use of the four aspects of marketing mix to sell its services to its customers. These are: Pricing strategies The company will offer competitive rates to make its services affordable to all classes of people. In addition, the company will offer a 10% discount to the second ticket purchased by the same consumer. This will attract repetitive consumers to the agency thus increasing its market share. Promotion/Advertising strategies These will focus on the following: Buying ‘space’ in the UK daily newspapers for promotional adve rts on the agency’s services Creating a website where clients will be able search and review their services. The site will then allow them to make online reservations. This site will also be hyper-linked to social networking sites and other travel sites Distributing brochures or posters to strategic places to sell company services Product/ Service strategies The company has already achieved this strategy by incorporating a variety of services within service line. Distribution strategies The company intends to distribute some of its operations for instance, by using agents to market its services. Operational plans TravelComfort will ‘purchase’ its services from the above listed service companies using the following procedure: The company’s Operation’s Manager (Mr Night) will be tasked with negotiating with service industries on the awarding of service agency contacts. In this case, the agency will target to be awarded a commission of 10% on each tic ket (in this case service) sold. The company will then strive to sell more to improve on its profitability. The company intends to sell its services by using its other six sales-representative employees. These employees will improve service efforts by delivering tickets and making telephone follow-ups on their return. These will garner repeat sales and businesses. Besides their coordination, the 2 partners will perform initial sales management until the hiring of the Business Development Manager. Sales forecast The company targets to have sold services worth  £2,516,430 by end of 2012 and  £4, 50,100 by end of 2013 and 8,000,000 in the third year of 2014. This plan is based on the service arrangements to be increased between the agency and its partners. The following table 2 summarises the sales, gross and net profit’s highlights. The values are all in ‘0000 TravelComforts Projected Highlights Sales G/P margin Net Profit Margin Yr 1  £250  £80  £15 Y ear2  £450  £125  £45 Yr 3  £800  £225  £12 To achieve the forecasted sales above, the following sales programs are to be implemented: Issuing sales awards to those sales representatives who will be the top four in terms of highest grossing sales Issuing awards to employees who excel in delivering exemplary tour services to Travel comfort clients. This will create a scenario of retaining and attracting clients hence increasing the sales. The firm intends to implement e-commerce by allowing on-site ticket sales and registration through its Computerised Reservation System. This will ease the process of acquiring or accessing the firm’s services hence increasing the number of discriminative clients. Related to the above, the management intends to position customer care agents in its London office to carry out the role of selling tickets through the phone mode. The firm’s marketing and ticketing services are also to be re-distributed across key attraction points (a scenario commonly called sales retailing) across London to win on the potential passers-by who can top up as its customers. For instance, off-site sales are to be carried out at hired sites. For instance, the management plans to engage stadium managers across the UK to catch on the increased spectator audience. This is so because the management carried an earlier research that proved that spectators in the VIP ticketing category were likely to form a special group for the specialized tour services across London. Break-even analysis The levels of sales need to service all personal requirements and costs will be calculated as follows: Sales (required to break even) =  £ (Business Survival Budget/Drawings + Overheads/Operating Expenses) Sales=  £300,000 +  £400,000=  £700,000 TravelComfort’s Monthly Break-even points Figure1 depicting the break-even analysis From the above figure, it is projected the company will break even half-way through the third month. At this time, the company will have required to have sold an estimated â‚ ¬ 700,000 meet its personal requirements (drawings) and all its costs comfortably. Key Personnel Mr. Josh Foster- Company’s Chief Executive Mr. Foster is one of the co-founders of the agency. Having graduated with a distinction in Business Management, Sales and Marketing, he will spearhead the company’s growth. His strength to multi-task across dynamic environments will see him represent the agency at key stakeholder conferences. He will also spearhead the agency’s expansion module. Mr. Rochelle Night-Operations Manager Mr. Night will coordinate all agency operations. His leadership skills will ensure that a link exists between the sales representatives and the customers. He intends to maximise on his supervisory role at Easyjet Travel Agency to implement his new duties. Other than the two above, the following also topped up as Travel Comfort’s board members: Critical risks of the venture The following risks were identified as potential risks associated with this venture. Emerging travel agency businesses that were likely to cause stiff competition. The financial crisis that was likely to cause shifts in consumer demands (consumers were likely to reduce on their leisure expenditures). The company was likely to lose contact with some of foreign customers. Contingency planning The following measures will be implemented to safeguard the performance of the venture if sales reduce by more than 5% as projected. The management will carry out reviews to determine if the forecasts were realistic. If they were not, new estimates will be forecasted based on the sales statistics at hand. In this case, the last trading period’s actual results will be projected for achievable targets to be determined. If the forecasts were real, the management will review its budget to obtain a realistic one. In this case, the management will determine the expenses to be r educed and the margins to e improved. In this case the pro-forma revenues will be decreased by a realistic percentage based on the conditions facing the company. Having implemented the above, the company will carry out the following actions to improve on its performance: Carry out an aggressive promotion to increase its service awareness. Establish reward schemes for its sales team to motivate them in reaching more consumers. For instance, by rewarding employees who surpass a weekly target of  £ 20,000 with a 15% commission Likewise, the company willl try to re-negotiate its contracts with its partners. In this case, the management will point out the difficulties facing the travel agency and request a re-view of the engagements on mutual basis. Offering/ Funding The following table summarized the company’s start-up summary Item(s) Description Total amount Expenses Office supplies, rent, consultant’s fees, utilities, insurance, internet charges, website creation charges, communication bill etc  £80,000 Assets Furniture, cash, computers etc  £ 120,000 Owners’ Contributions Primarily cash  £ 150,000 Loans/ Borrowing From Standard Chartered Bank  £ 200,000 Total start-up funding  £ 550,000 Financial Plan Profit Loss Account The following is the profit and Loss account (projected for the first three years). Note: All figures are in  £. Year1 Year 2 Year 3 Sales (Direct and Indirect) 2,516,430 4,110, 345 5, 815,100 Less cost of sales 1, 910, 000 3, 515, 650 4, 910, 000 Gross profit 606,430 594,695 905, 100 Less Expenses 450,130 480,520 520,000 Pre-tax net income 156, 300 114,175 385, 100 Taxes Paid 18,900 11, 600 41, 200 Net income 137,400 102,575 343,900 Pro-forma Balance Sheet The following balance sheet has also been projected for the first three years. Balance Sheet (projected for the 1st three years) Note: All figures are in  £. Year 1 Year 2 Year 3 Total Current Assets 450,000 4 20, 500 455, 100 Total Long-term Assets 150,000 214,000 139, 900 Total Assets 600,000 634,100 595,000 Current liabilities 250,000 242, 100 245,000 Long-term liabilities 200,000 112,000 0 Total Liabilities 450,000 354, 100 245,000 Total Capital 150,000 280,000 350,000 Total Capital and Liabilities 600,000 634,100 595,000 Reference List Doganis, R, Flying off course: the economics of international airlines, 3rd edition, Routledge, Newyork, 2002. Hogson, A, The travel and tourism industry: strategies for the future, CABI Publisher, Oxford, 1987. Horne, S J, Swarbrooke, Leisure marketing: a global perspective, Butterworth-Heinemann, UK, 2005. Independent on Sundays, Recession ‘is good news for UK travel industry’, 2008. Web. Needham, A, Business for higher awards, Heinemann, UK, 1999. Evans, N, Strategic management for travel and tourism, Butterworth-Heinemann, UK. Page, S Connell, J, Tourism: A modern synthesis, 2nd edn., PublisherCengage Learning EMEA, Stamford, 2006. Pfister, R Tierney, P, Recreation, event, and tourism businesses: start-up and sustainable operations, Human Kinetics, Leeds, UK, 2008. Plunkett, J W, Plunketts airline, hotel travel industry Almanac 2007: Airline, hotel travel industry market research, statistics, trends leading companies, Plunkett Research, Ltd., Texas, 2006. Robinson, P, Operations Management in the Travel Industry, CABI, Oxford, 2009. Tassiopoulos, D, New tourism ventures: an entrepreneurial and managerial approach, Juta and Company Ltd, Cape Town, South Africa, 2009. UK Office for National Statistics, Travel and tourism: Overseas visits still subdued, 2011, retrieved https://www.ons.gov.uk/. Footnotes 1 D Tassiopoulos, New tourism ventures: an entrepreneurial and managerial approach, Juta and Company Ltd, Cape Town, South Africa, 2009, p.309. 2 J W Plunkett, Plunketts airline, hotel travel industry Almanac 2007: Airline, hotel travel industry market research, statistics, trends leading co mpanies, Plunkett Research, Ltd., Texas, 2006, p.62. 3 R Pfister, P Tierney, Recreation, event, and tourism businesses: start-up and sustainable operations, Human Kinetics, Leeds, UK, 2008. 4 S Page J Connell, Tourism: A modern synthesis, 2nd edn., Cengage Learning EMEA, Stamford, 2006, p.81. 5 Independent on Sundays, Recession ‘is good news for UK travel industry’, 2008. 6 A Hogson, The travel and tourism industry: strategies for the future, CABI Publisher, Oxford, 1987. 7 P Robinson, Operations management in the travel Industry, CABI, Oxford, 2009, p. 254. 8 A Needham, Business for higher awards, Heinemann, UK, 1999, p.19. 9 UK Office for National Statistics, Travel and tourism: Overseas visits still subdued, 2011. 10 S, Horne J, Swarbrooke, Leisure marketing: a global perspective, Butterworth-Heinemann, UK, 2005, p. 233. 11 R Doganis, Flying off course: the economics of international airlines, 3rd edition, Routledge, Newyork, 2002, p.159. 12 N Evans, Strategic man agement for travel and tourism, Butterworth-Heinemann, UK, pp. 172-177.

Behavioral finance Coursework Example | Topics and Well Written Essays - 1750 words

Behavioral finance - Coursework Example To establish the influence of cognitive, affective and social aspects on investment decision making, and the role of psychological and social factors in financial market behaviour, this essay discusses what might cause perceptions of risk to be inaccurate,. Risk is an amalgamation of the probability or frequency of occurrence of a distinct hazard and the magnitude of the consequences of the occurrence (Botterill & Mazur, 2004, p.1). It defines how often a particular harmful event is expected to occur and consequences that such an occurrence is expected to cause. In terms of investments, risk may be defined on the basis of the amount of loss expected to be incurred when an adverse occurrence happens or is expected to happen frequently. Therefore, perceptions of risk are constructed on the basis of individual beliefs, societal perceptions and expert perceptions. Most people perceive risk as a possibility of bad outcome, whenever a choice is made. Therefore, in many instances, risk taking is not regarded as a potentially positive activity. However, there are instances, though few, where risk taking is perceived as a positive activity, with the potential of creating benefits to an investor. There are significant gaps between perceived risk and measurable probabilities of risk. The evident widely acknowledged differences between perceived risk and actual risk suggests that in most cases; perceptions of risk are inaccurate. This is evident when significant differences are recorded in terms of what is perceived and what actually happens in terms of real investment risks (Botterill & Mazur, 2004, p.3). Therefore, various people understand and respond to risk in various ways, based on psychological and social factors surrounding them. One of the factors that influence perception of risk, and most probably leads to an inaccurate perception of risk is the