Development and History of AIRASIA

Development and History of AIRASIA AIRASIA is one among the top International brand in the low cost Airline Industry. Airasia brand came into existence in 1993, it was a joint public-private sector enterprise, however in 2001 current CEO Mr. Tony Fernandes purchased it and It was under him the Airasia brand got global recognition and unimaginable growth which started right from 2002 and continues till date, AirAsia started moving up the ladder under Tonys leadership from 2002 onwards by launching new routes from its main hub the capital of Malaysia till then the national carrier of Malaysia ruled the sky in and around Malaysia. In 2007, Airasia announced the birth of Airasia X the long haul budget flights, the first AirAsia X flight was from Kuala lumpur International airport to Gold coast in Australia thus began the journey from south east Asia to capturing routes in major cities around the world. In 2007, Virgin Airline chief had 20% stake in AirAsia X and had announced code sharing between Virgin Blue and AirAsia in and around Australian subcontinent. Profile of AirAsia: AIRASIA, is Asias largest and one among the top 10 international brand in the low cost segment having physical base in three countries; Malaysia, Thailand and Indonesia. AirAsia has four subsidiaries: AirAsia, Indonesia AirAsia, ThaiAirAsia and VeitJet Airasia. The company has a strength of around 3000 staffs and It flies to around 65 destinations worldwide using the 97 aircrafts and another 125 on order will be added to its fleet and it operates over 400 domestic and International flights, The total number of passengers that flew Airasia numbered 16,000,000 per year at a rate of 51000 per day for the year 2007. STRATEGIC CORPORATE PLANNING OF AIRASIA: By September 2008, Airasia had 60 routes and was voted as Worlds best New Airline for 2008 at World low cost Airline Congress in London inspire of tough competition it faced over Asian skies by brand which had committed fan following, global recession and increased air fuel prices. Airasia managed to survive and grow against the odd solely based on their distinctive model and new strategies. AIRASIA MODEL AND STRATEGIES: To position itself as the top airline brand in the low-cost, short haul based on no frills model. Opening of new hubs at airports and new routes outside their dominated Asian zone. Expanding into the Cargo transportation market. Marketing as a Go Green brand. User being able to access bookings and Online Information on Airasia through Blackberry. Fuel efficiency which helps in the overall reduction of travel cost. The slogan of Airasia is Now Everyone Can FLY, to attract customers both old and new ones with flying on time and having attractive and competitive price and tour packages as airasia management have their own hotel division having star hotels around many destinations plus having wide range of meal option on the In-fight purchase menu. The model which AirAsia under Mr. Tony Fernandes adopted for long haul flight was to choose airport where airport charges was low hence instead of Sydney airport Gold coast airport was considered for airasia link between Malaysia and Australia. To achieve Reduction in travel fuel cost Airasia concentrated on optimizing the air fuel consumption and with majority of the asset within the fleet being new Airbus planes, its more easier said than done. Airasia management based its model around latest technology including having access to its service [online booking, online checking and e-ticketing] through computers and blackberries. Successive growth of Airasia since its re-birth in 2001 can be put on following main strategies which they adopted: Cost reduction strategy of Airasia : Airasia vision is be a leader in the low cost airline segment by targeting the 3 billions people who are still under-served with the poor connectivity facing the high fares. AirAsia managements key strategies on cost reduction are:- High point concentration on Passenger Safety and maintenance of its fleet to be in best of the condition as per the set standards of regulators and its partners. To achieve High Aircraft Utilization by trying to get the quick turnaround by 25 minutes and by increasing staff productivity. Low fare, no Frills like added facilities of baggage transfer, preference on meals and seat arrangement etc. which adds to the customer satisfaction. Streamline Operations by working with single aircraft fleet to reduce manpower and stocking of maintenance parts. Using Latest Lean Distribution System to reduce labour and material utilization like usage of E-ticket. Point to point network. Summarised in a Table format below: Cost Category Cost Item Levers for reducing costs Costs -Aircraft Utilisation. -Reduce turnaround times. -Reduce maintenance downtime Fuel Costs Route Efficiency -Weight Reduction -Shorter en-route and approach times. -High standard of fleet maintenance. -Use of fuel hedging strategy. Handling Costs Service Level In sourcing. Reduce Handling Fees Pre-cleaning activities by cabin crew Loading/unloading support from crew Global contracts with key suppliers Off-peak pricing Catering Costs Reduce unit costs Reduce volumes Simplification of meal choice. à ¢Ã¢â€š ¬Ã‚ ¢ Reduce logistics costs for delivery. à ¢Ã¢â€š ¬Ã‚ ¢ Monitor passengers vs. available meals. Lean Distribution management. Ticketing Sales Channels Sales Commissions Development of E-ticketing Self-service check-ins Divert customers to on-line channels. Maintenance -Fleet. -Service Costs -Fleet harmonisation. -Reduce average fleet age. -Joint purchasing of some work. optimise maintenance activities Porters Generic Strategies: AirAsia follows Porters strategies to focus on cost leadership to allign with its business strategy and mission statement by targeting specific segment of price sensitive customers and the first time fliers looking at value for price and short haul flights. Porters Generic strategies talks of three different generic strategies that any business can focus for a overall edge over competitors, sustainability and growth as shown in above figure, the three strategies include Cost leadership, Differentiation strategy and market segmentation (Focused differentiation) (Johnson Scholes 1997). Cost leadership strategy: This strategy allows a business to become the lowest cost producer of a product within an industry by organising and managing its value- adding activities. Cost advantage may be achieved in terms of how qualitatively a product or services is designed. Differentiation strategy: This strategy is adopted by persuading customers that a product is superior to that offered by competitors (Campbell, 2002). The value added by the uniqueness of the product or services may allow the company to charge a premium price for it. However, the threat to this differentiation may include copying of the product by competitors and changes in customer tastes. Focus-differentiation strategy: is aimed at a segment of the market from a product rather than at the whole market or many markets (Campbell, 2002). The successful way using focus strategy is to tailor a broad of product or service development strengths to a relatively narrow market segment that they know very well. This strategy may also face the threat of imitation and changes in the target segments. AirAsia business strategy is built around above defined three Porters generic strategies on two of the above strategies it follows Broader approach and on focus-differentiation strategy AirAsia follows narrow approach to sustains its competitive advantage. AirAsia mission statement was to be the leader in the low cost segment and it follows the porters strategy to the book on cost leadership by providing services at a price that is simply lower than competitors price and by effective and efficient operational management. Airasia uses Porters cost leadership strategies to be on path of its motto Now everyone can fly to achieve this it markets and manages itself as airline with hassle-free, no-frills, luxury at low fare travel by efficiently managing its policy of cost reduction to the micro level in the value chain so that the saving can be passed on to the price sensitive passengers so as to be the leader in the low cost segment. SWOT ANALYSIS SWOT analysis  is a  strategic planning  method used to evaluate the  Strengths,  Weaknesses,  Opportunities, and  Threats involved in a  business  venture.   SWOT analysis points to the Internal (strength and weakness) and External (opportunities and threats) factors that would affect in the growth and sustainability of a business venture in our case Airasia to sustain its top position in the low cost carrier segment. Strengths A Low cost operations which has made AirAsia brand a leader in the low cost carrier segment. Airasia management is made of fewer level which helps in faster and effective, focused and aggressive management and with management consisting of members having strong links with Government in south pacific Asia, it makes it easy for their business development with least government interference and more concessions. Airasia Staffs is made up of workforce which are Multi-skilled and efficient, Airasia follows the model of incentives for the hardworking and smart workforce, this model helps to return talent and to grow along with the company. Management strong focus on cost reduction to position AirAsia Groups as industrys lowest cost producer. Airasia group have strong balance sheet and cash flow this helps to weather short-terms unforeseen difficulties. Airasia management decision to move to a Single type fleet paid well it helps in minimising maintenance fees. IT Utilization to the maximum has enabled Airasia to increase efficiency helping it track its fleet, staffs and seat management in case of no-show customers on ASAP basis. IT also helps in promotional activities and in lean management based on e-ticketing model and online checking. Fuel Burn Emissions: Single type fleet of Airbus A320 helps Airasia stick to its efficient fuel usage police to go by their GO Green and cost reduction strategy. Airbus A320s low noise level improves operational flexibility and lowers surcharges for airports with noise constraints. Ancillary Services: In the current year from January to April, Airasia achieved ancillary income of RM45 per passenger. AirAsias ancillary service includes products and services such as baggage supersize, in-flight food and beverage, merchandising and duty-free, courier, airspace advertising and AirAsia RedTix. AirAsia RedTix is a unique Ancillary income system which is related with non-airline ticketing system focusing on tickets to events, sports and music. Ancillary income not only contributes to the airlines bottom line, but it also provides a buffer against rising fuel prices. Weakness Airasia do not have their own MRO (maintenance, Repair and Overhaul) facilities. Being a young fleet with young staff at times makes it difficult to handle unforseen situation at both physical location and over the customer service management mainly related with change of flight and over refunds. AirAsia have faced difficulties with government interference mainly at level where Airasias main competition happens to be directly with the national carrier. Being a young brand makes it a challenge to catch the attention of frequent and first time fliers for Branding is vital for market position. Airasia depends on service based on outsourcing which at times can lead to delivery delays and hindrance of long duration on two segment IT and MRO. Young fleet at times shows lack of contingency plan on irregular situations. Opportunities AirAsis after making a mark for its brand in short haul low cost carrier sector is targeting the Long haul flight domain as an trial phase to tap share of that market as well. After having tasted success in Asia-Pacific region, AirAsia is targeting new routes and destinations on a global level. AirAsia by having tie up with other established low cost carriers on Existing, new routes and destinations untapped by AirAsia brand for example Airasia have tie up with Virgin Airline on landing rights and landing slots. AirAsia have tied with various new Airports outside of Malaysia for setting up for new AirAsia hub at these Airports. AirAsia management through its RedTix subsidiary can enhance its brand growth by having Service related Industry-wide mutual cooperation. AirAsia being in a Dominant/monopoly position in many routes in and around the Asia-Pacific zone will give them bargaining power on the pricing front. Threats Established carriers both private and national carriers if start bringing down their prices to attract the cost sensitive customers will directly affect AirAsia which is based on low cost, no frills, no hassle model. Global uncertainty on Business and Political front directly causes fuel prices to increase and High Fuel prices decreases revenue and hurts more for a low cost carrier. IT Utilization to maximum can also have a side effect on growth for heavy reliance on online sales is risky as system can breakdown anytime. New form of taxes for example Environmental taxes adds on to disruption on the cost equation. With terrorism being a global evil airline Industry is the always under threat, Accidents due to human and natural disaster is always a threat. Uncertainties on Aviation regulations and government policies. PEST ANALYSIS POLITICAL: Political Uncertainties in Asia-pacific region be it Malaysia, Indonesia and the wide unrest in Thailand. Malaysian Government Regulation played a vital role at the initial stages. There existed a heavy restriction on competition in this industry imposed by the individual countries mainly Malaysia trying to protect their national airlines. The bilateral agreement between the countries led to the deregulation of the industry. Terrorism is one of the factor which plays behind the mind of the traveler wishing to take a vacation in the Asia-pacific zone specially after Bali bombing which is one of the dominating region for AirAsia brand. ECONOMIC: The terrorist attacks, wars, epidemics like SARS, played a very crucial role in the airline industries. Uncertainty in fuel and energy costs Uncertainties on the economical Recession front can highly affect the AirAsia growth. SOCIAL: The Growth in the Middle class population in Asia where AirAsia has a dominating presence. Attractive Travel and tourism package by government initiated tourism Ministry and private tour operators attracted large number of fliers. Exclusive prices provided by AirAsia helped in the growth of its brand among price conscious fliers. TECHNOLOGICAL: Being a Young fleet, AirAsia had the Advantage to invest and use latest technology and concepts as their business model. AirAsia along with using World Wide Web for online services are internally using -Yield Management system, computer reservation system and latest Microsofts Enterprise Resource Planning System. All these have helped AirAsia to reduce operating costs and provide fast, efficient service like checking of flight schedules, booking seats, online check-in, and pre-order meals, Supersize my baggage FINANCIAL HIGHLIGHTS upto 2nd Quarter of 2010. Table below shows the positive growth of AirAsia brand in last 3 years with strong profit after tax performance of RM 549 million

Aristotle’s Contributions to Communication Theory

Aristotle (384 BC – 322 BC), was the son of Nichomachus (the physician to the king of Macedonia). He was born in the city of Stagira in the northern Greece. He had initially been exposed to medical training after which in 367 BC enrolled to study philosophy with his teacher, Plato in Athens. He proved to be a very brilliant student but who constantly disagreed with almost everything his teachers taught. This was fundamentally because Plato always understood the world abstractly but Aristotle was more for a changing world. Aristotle believed in empirical knowledge which involved cataloguing of observable phenomena in explaining everything in nature.Due to this belief and attitude, he wrote literally about all aspects of nature and human societies including: metaphysics, physics, embryology, ethics, poetry, mathematics, meteorology, physiology, politics, dreams, anatomy, rhetoric and many others (Randall, 1960, p.23).Aristotle is a great icon when it comes to the aspect of diffi cult and rational philosophical thinking and especially one that is of abstruse nature. Even among the very well educated and read persons, he remains a legend who wrote with the precision of a superhuman and his thinking was superb with clarity that is quite incredible.His works however are easily read and the western culture or global modern culture cannot be talked about without an association with this inspiring historical philosopher though he himself never came into terms with almost everybody leave alone Plato, his famous teacher.More than 2,300 years down the line, Aristotle, who is considered the guru of rhetoric, laid the fundamental foundation of a good rhetoric (many people being addressed by one person) by saying that it should be ethical as well as persuasive.He defined rhetoric as the faculty that concerns itself with availability of persuasive means as may be observed in any particular case. Aristotle specifically divided public oratories into three categorical class es: the ceremonial, forensic and political oratory (Shields, 1999, p.15).Oratory in ceremonial situations is used particularly to censure or give some praise to an individual. Political oratory is mainly meant to urge or compel the audience to accept or not to accept something whereas forensic speaking usually defends or attacks a person in a given case and is the most relevant and widely applied in courtroom proceedings. It focuses at establishment of injustices or justice of a specific action.He believed that rhetoric must possess three proofs which are ethics (ethos), emotion (pathos) and logic (logos). He had observed the audiences being publicly manipulated by skillful speakers of his time who had no regard of the truth in their communication and this didn’t auger well to him and to Plato, his teacher. He therefore saw no apparent need or value of such rhetoric’s and this prompted him to study rhetoric in a deeper and on a different perspective.Logos is the logic contained in the actual communicated words by the speaker in a speech. The audience and their emotions or feelings in the process of rhetoric is the pathos whereas ethos is the character and disposition of the speaker as revealed by him/her, and perceived by the audience during the process of the communication.During Aristotle’s days, the pathos idea was a novel one though not many speakers today would communicate without putting their audiences’ auspice into consideration.Audiences and audience’s perception of a speaker is a very integral part of any communication as was first stipulated by Aristotle. As a matter of fact, the arousal of an audience’s emotions represents effectiveness of a speech. This has severally been employed in many great and historical speeches.For example, the famous Martin Luther King Junior’s speech in a letter he wrote while in a Birmingham jail incorporated the three necessary ingredients, the ethos, logos and pathos thu s making his audience convinced of the truth and importance of his speech (Shenk, 1995, p.56).According to Aristotle, persuasion is demonstrative in the sense that it is through the character of a speaker that it can be achieved. The audience will always consider the speaker’s credibility from his/her spoken word to be convinced, after apparently discerning some truth from the presented arguments.Aristotle went beyond the explanation of ethos as merely competence in morality of the speaker to include knowledge and expertise. Although the word ethics, derived from the Greek word ethos (meaning disposition or theory of living), it is the study of morality.Aristotle gave indubitable remarks that it is not what the audience thinks of the speaker’s character prior to the speech that matters but by the content of the speech.However, several writers today dispute this and argue that it is the speakers overall history and morality that matters in determining the validity or in validity of the argument. For example they argue that some ethos can be violated through a number of reasons which include the following (Broadie, 1991, p.68).Firstly, the speaker may have some motives that may be ulterior or some interests vested in the debates final outcome. The interests may be direct such as in a case where an individual who has been involved in a crime pleads ignorance and innocence of the same.Secondly, it may be that the speaker’s expertise is doubtable e.g. a doctor’s lecture on architectural designs has less impact than an architecture giving a speech on the same.Pathos, another mode of persuasion, implies â€Å"emotion† or to â€Å"suffer† as derived from the Greek word paschein. The audience’s emotions can be appealed to in a number of ways. Particularly, it can be very powerful when passion in general together with some items of emotional arousal is skillfully applied in the speech.Moreover, it can be through telling st ories using some metaphorical connotations as commonly used in non-fictional or fiction materials evoking paramount pity and/or sorrow. Pathos is more psychologically appealing to audiences especially when it results to rejection fear if the audience is in disagreement with the speaker’s arguments.When pathos is excessively applied, it leads to over-emotionalism. Appealing to the emotional aspect of the audience, one can easily inspire happy, sad or angry reactions as well as patriotism among many others (Whaley, Samter, 2006, p.47).Logos is defined as the application of logic in the process of making arguments or in other words the reason appealing technique. It is the factual and rational modality upon which the position of the speaker is based and supported. By the use of arguments that are persuasive in nature, persuasion itself can be affected by the very speech when an apparent truth or a truth has been proven in a particular case.The attorneys will always desire to app eal to the logical sense of the fact finder at one point or another during the process of trial in a case. By use of logos, individuals want to convince an adoption for no other conclusion but theirs alone (Shenk, 1995, p. 104).ReferenceBroadie Sarah (1991) Ethics with Aristotle. Oxford, Oxford University Press, pp.68.Randall John (1960) Aristotle. Columbia, Columbia University Press, pp.23, 49.Shenk Robert (1995) Ethos at Sea. Business Communication Quarterly, Vol.58, pp. 56.

Low Fat Cheese Market †Global Industry Analysis Essay

Low fat cheese contains lesser amount of saturated fat and reduces the level of low-density lipoprotein (LDL) cholesterol which is responsible for an increase in the risk of heart disease. Normal cheese has 30-40% saturated fat whereas low fat cheese, produced from skimmed milk contains 7-15% saturated fat. Commonly available cheeses such as cheddars, mozzarella, provolone and others, depending on the process and the country where they are produced, are easily available in the market today. Low fat cheese is also available in various forms as a healthy alternative to regular cheese. Low fat cheese has almost all the applications that normal cheese has. Some of the products where low fat cheese is used are pizzas, sandwiches, hotdogs, and salads. The geographical market segments are North America, Europe, Asia Pacific, and the Rest of the World (RoW). Highest cheese consumption is seen in Europe while North America’s consumption is comparatively less. One of the key drivers for the growth in the demand for low fat cheese is the growing health consciousness among the people. Normal cheese is said to have higher amounts of fat as well as sodium. Moreover, much attention is given to the diet of children keeping in mind the adverse affects of cheese on the body in the long run. Also, cheese is a part of the culture in many countries, where it is consumed on a daily basis. One of the restraints to the low fat cheese market is its taste after the reduction of fat and sodium as the flavor of cheese depends on these two components. Some types of cheese like mozzarella, cottage cheese (paneer), and Swiss cheese have low salt and fat content naturally, compared to other cheese that contain artificially reduced salts. The major players in the market are now focusing on reducing fat and salts from cheese such as in American cheese which has a high amount of these components. Some of the major producers of low fat cheese are the Lactalis Group, Kraft Foods Group Inc., Fromageries Bel S.A., Bongrain S.A., Arla Foods and others. This report is a complete study of current trends in the market, industry growth drivers, and restraints. It provides market projections for the coming years. It includes analysis of recent developments in technology, Porter’s five force model analysis and detailed profiles of top industry players. The report also includes a review of micro and macro factors essential for the existing market players and new entrants along with detailed value chain analysis. This report provides pin-point analysis for changing competitive dynamics It provides a forward looking perspective on different factors driving or restraining market growth It provides a technological growth map over time to understand the industry growth rate It provides a seven-year forecast assessed on the basis of how the market is predicted to grow It helps in understanding the key product segments and their future It provides pin point analysis of changing competition dynamics and keeps you ahead of competitors It helps in making informed business decisions by having complete insights of market and by making in-depth analysis of market segments It provides distinctive graphics and exemplified SWOT analysis of major market segments About us Transparency Market Research (TMR) is a market intelligence company providing global business research reports and consulting services. Our exclusive blend of quantitative forecasting and trends analysis provides forward-looking insights for thousands of decision-makers. TMR’s experienced team of analysts, researchers, and consultants use proprietary data sources along with various tools and techniques to gather and analyze Our data repository is continuously updated and revised by a team of research experts so that it always reflects the latest trends and information Our Approach †¢ Our research reports cover global markets, present analysis and forecast for a period of five years. Respondents are led through a questionnaire to gather quantitative and qualitative inputs on their operations, performance, strategies and views on the overall market, including key developments and technology trends.

Free Essays on Rock N’ Roll

I’m going to introduce to the reader a topic not touched on a lot because of its complexity and its avoidance by conservative adults. This topic is Rock n’ Roll Music. I compiled my information from the internet, books and magazines and my personal knowledge about the topic and from that information, I will try to lead you to a better understanding of Rock n’Roll. I chose this topic because Rock n’ Roll has been popular all my life and I relate certain life events by a song that was popular at that time. Rock music is very complex; in fact "its stylistic scope is too broad to be encompassed by any single definition" ("Rock Music", Groliers, p.1). The nearest definition suggests a kind of music that represents and speaks for the teenage society and changes from generation to generation, from â€Å"I wanna hold your hand† to lyrics so sexually explicit, nothing is left to the imagination. In this essay, I’m going to divide Rock music into four sections: Rock of the 50 ´s, of the 60 ´s, of the 70 ´s and of the 80 ´s. Within these sections I will also discuss several sub-topics such as famous composers and groups, and characteristics of the music. The first section of this essay is Rock n’ Roll of the 1950’s, when Rock n’ Roll was born. Fifties rock emerged from rhythm and blues, music similar to jazz played by black artists. Disc jockey Alan Freed was the one who first introduced this music and later gave it the name of Rock n’ Roll and it began to attract the teenage crowd. Bill Haley with his "Rock Around the Clock" was one of the first Rock n’ Roll icons. Also in this decade, Elvis Presley introduced music that was sexually suggestive and outraged dull adults. In time he changed the style of his music by adopting a country and western style and became a national hero. By the end of this decade and the start of the next, Rock n’ Roll started to decline because it was formula ridden and thought to be to... Free Essays on Rock N’ Roll Free Essays on Rock N’ Roll I’m going to introduce to the reader a topic not touched on a lot because of its complexity and its avoidance by conservative adults. This topic is Rock n’ Roll Music. I compiled my information from the internet, books and magazines and my personal knowledge about the topic and from that information, I will try to lead you to a better understanding of Rock n’Roll. I chose this topic because Rock n’ Roll has been popular all my life and I relate certain life events by a song that was popular at that time. Rock music is very complex; in fact "its stylistic scope is too broad to be encompassed by any single definition" ("Rock Music", Groliers, p.1). The nearest definition suggests a kind of music that represents and speaks for the teenage society and changes from generation to generation, from â€Å"I wanna hold your hand† to lyrics so sexually explicit, nothing is left to the imagination. In this essay, I’m going to divide Rock music into four sections: Rock of the 50 ´s, of the 60 ´s, of the 70 ´s and of the 80 ´s. Within these sections I will also discuss several sub-topics such as famous composers and groups, and characteristics of the music. The first section of this essay is Rock n’ Roll of the 1950’s, when Rock n’ Roll was born. Fifties rock emerged from rhythm and blues, music similar to jazz played by black artists. Disc jockey Alan Freed was the one who first introduced this music and later gave it the name of Rock n’ Roll and it began to attract the teenage crowd. Bill Haley with his "Rock Around the Clock" was one of the first Rock n’ Roll icons. Also in this decade, Elvis Presley introduced music that was sexually suggestive and outraged dull adults. In time he changed the style of his music by adopting a country and western style and became a national hero. By the end of this decade and the start of the next, Rock n’ Roll started to decline because it was formula ridden and thought to be to...

Strategic Management Paper Chapter Essays

Strategic Management Paper Chapter Essays Strategic Management Paper Chapter Paper Strategic Management Paper Chapter Paper This can affect company performance in the long run especially if people will patronize the new entrants. Rt 3 Despite the entry of new competitors, Jollibee has been insignificantly affected because of its scheme of buying competitors and assimilating itself into the Company group. 06. There is an opportunity for competitors to agree upon a price ceiling to be able to maintain their customers. Wt = . 09 To maintain customers is to ensure that product prices are kept to an affordable value considering the competition. New products are normally created that are priced to a minimum to attract customers. Rt = 2 Jollibee has maintained that prices of new products are kept abreast with competitors. By doing this, the threat of new substitute products are minimized because pricing is adapted to address the potential threat. other fast-food products to satisfy their wants in terms of food service. Wt = success largely depends on its customers and their buying power. Rt = 3 By lowering food prices, Jollibee continues to address this disposable income rise so as to maintain constant or growing sales. By lowering prices, Jollibee attracts customer who can buy more in their stores compared to ther competitors. T2. Varying consumption patterns may lead consumers to find alternative food products other than that which Jollibee may offer. Wt= . 06 The growing taste of consumers affects the sales of companies for they continue to seek out new products offering a new taste. Nonetheless, almost all food chains do not significantly differ in product offering. Rt = 3 By continuous innovations of product development, Jollibee does not significantly lose in this threat. They are able to address the growing demands for new food products. T3. With more international franchise store entering the Philippines, consumers have a lot option to decide where to go sizeable exposure to multinational fast food chains, high-end dining. Wt= . 07 Globalization is imminent and the Philippines is a good place to start developing a new food business. Filipinos are basically food enthusiast with colonial mentality preferring foreign based chains over local ones. Rt 2 Jollibee has quite failed to address the influx of new and foreign competitors. It has stuck with its brand of promoting Filipino-oriented fast food until now. T4. Jollibee faces a huge market competition due to the fact that these two (McDonalds and KFC) chains are internationally-based and is rapidly expanding and are already established within the country. Wt = . 09 McDonalds and KFC are Jollibees biggest competitors in the country. Both have the resources to play step-by-step with Jollibee in terms of resources and product development. 4 Jollibee has stepped up efforts to compete head-to-head with these two giant ast-food chains by rigorous product development and innovation. The key is continuous progress and quick response to the needs of its market. T5. Lack of new entrants to the industry results to higher competition among existing and established businesses. Wt= . 08 There are little entrants in the caliber Of Jollibee, McDonalds, or KFC in terms of fast-food chain. Therefore, the competition is narrowed among the three big competitors. Rt = 2 Repsonse is basically the same as previous threat. Jollibee has stepped up efforts to compete head-to-head with these two giant fast-food chains by igorous product development and innovation. T6. Higher competition is expected due to the threats brought by substitute products. Wt = . 09 The fast-food industry plays on product innovation and development. Lagging into these will result in reduced sales output of fast-food companies. Rt 4 Jollibee has addressed this continuous progress and quick response to the needs of its market. B) Competitive Profile Matrix (CPM) A competitive profile matrix compares a company and its rivals. The matrix reveals strengths and weaknesses for each company, and critical success factors show areas of success or areas for improvement. Understanding a few key elements of a competitive profile matrix will help with interpretation. Jollibee McDonalds KFC Critical Success Factors Score 1 . Advertising . 4 0. 4 2. product Quality . 05 . 15 0. 15 0. 2 3. Price Competitiveness . 3 . 9 0. 9 0. 6 4. Management . 2 5. Financial Position 6. Customer Loyalty 0. 3 7. Global Expansion 8. Market Share 1. 2 Total: 100% 3. 57 3. 35 2. 65 4 = Major strength where the response is superior, 3 = Minor strength where the response is above average, 2 = Minor weakness where response is average, 1 = Major weakness where the response is poor. In the Philippines, it is evident that Jollibee is the leading fast-food brand overall. Although McDonalds is very close and KFC maintaining a good distance not to be left out, Jollibees SUCceSS is evident as against the other competitors largely because it is a locally-based firm unlike the other two which are internationally based. CSFI . Advertising Weight = Jollibee uses different strategies often seeking to generate increased consumption of their products or services through branding, which involves associating a products name or image with certain qualities in the minds of consumers. Jollibee Rate = 4 Jollibees revenue shoots up because of its strong marketing programs emanating from the Langhap Sarap motto. McDonalds Rate = 4 McDonalds invests on their marketing programs as well, ranging from its first, drive † thru facilities, the McSavers value meals and Happy Meals, and the introduction and re-launching of various McDonalds products. KFC Rate The chain is well known for the finger lickin good slogan which makes it such a household name in the fast food chain industry as well. CSF2. Product Quality CSF Weight = . 5 Most business, such as Jollibee, that produce goods for sale have a product uality or assurance department that monitors outgoing products for consumer acceptability Jollibee Rate = 3 Jollibee has a strong understanding of Filipinos taste and preference as well as it is high quality with a tailored menu specifically for Filipinos. McDonalds Rate = 3 McDonalds is committed to provide customers with high quality products as well KFC Rate = 4 W hile KFC is known for its Quality Management Program as its standards for product quality exceeds the customers expectations. CSF3. Price Competitiveness weight = . 3 Competitive pricing is used by Jollibee often because they sell similar roducts to that of McDonalds and KFC, since services can vary from business to business while the attributes of Jollibees products remain similar. Jollibee Rate = 3 Its price competitiveness is lower than that offered by the competitors, or the price is made more attractive because of added incentives, such as longer payment terms. McDonalds Rate 3 McDonalds also offers food at prices that cannot be easily matched by other competitors thus making this an advantage. KFC Rate = 2 KFC uses this pricing strategy as well but compared to Jollibee and McDonalds, its approach to this strategy is less aggressive compared to the ther competitors. CSF4. Management weight = . 05 It is evident that the company uses effective and efficient planning strategies from goal and objective setting hierarchical structure to duty delegations and job specifications. Jollibee Rate = 4 Jollibee always makes sure that all aspects of the day-to-day running restaurant, from sales and operational management to budgetary control and team development. We are looking for leaders who will maximize the potential of the Restaurant and deliver exceptional resu Its through their people. McDonalds Rate = 4 McDonalds has provided the same techniques with regards its management. KFC Rate = 4 ike Jollibee and McDonalds, KFC hires the right candidates to manage its operations and strategy planning. CSF5. Financial Position The company is consistent with an increasing trend in terms of revenues, operating costs and expenses. Jollibee Rate = 4 Jollibee is in a secure financial position. However, improvements are needed in some areas for the company if it intends to grow. McDonalds Rate 4 It is discovered that efficient operations, strong short and long term solvency position, high profitability, highly loyal customer, broader ne?ork expansion nd the value adding menu are major factors Of its successful financial position. KFC Rate = 4 KFCs escalating ratio is a result of the higher increase in sales over its cost of sales and operating expenses, leading to a higher income before interest and taxes. CSF6. Customer Loyalty Weight Jollibee nowadays have capitalized making their loyalty programs, which often gives benefits that also cost a little, but it carries with them an assumed prestige. Jollibee Rate = 4 Instead of targeting all customers, Jollibee only needs to target new customers in order to grow their business. Their customer loyalty is an easily efendable qualitative factor, so competing institutions will have a difficult time overcoming it. McDonalds Rate † 4 McDonalds may not have Jollibees high Customer Loyalty but it does instil brand loyalty in customers as regards to introducing Ronald McDonald as its clown mascot. KFC Rate = 3 KFCs strategy in gaining Customer Loyalty actually targets the youth and the company focuses more on innovation. CSF7. Global Expansion Jollibee is aggressively entrusting its expansion both locally and globally which in the long term, more and more of the profit growth will come from franchising. Jollibee Rate = 2 Unlike its other competitors, this company has little exposure to competition with foreigners and has limited markets with overseas Filipino communities. McDonalds Rate 4 McDonalds adaptation to the local culture in every country is the way they have managed to successfully provide Global Expansion. KFC Rate = 4 Same as McDonalds, KFC has proven its ability to expand globally along with its diverse strategies. CSF8. Market Share Weight = . 3 This fast food chain not only to win the market share of fast food customers, but also to dominate the Quick Service Restaurants (QSR) industry in the Philippines. Jollibee Rate = 4 Jollibee now controls 18% of the market in Metro Manila, handily beating McDonalds which is said to only have 10% share of the market. McDonalds McDonalds is the worlds largest food service organization. McDonalds holds more than 40% share of the US fast-food burger market, many times the share of its nearest competitor. However, in the Philippines, Jollibee is considered as having more market shares. KFC Rate = 2 KFC is currently sharing its market to brands like McDonalds and Jollibee for under Chicken Dishes category, garnering at least 30% of its share. KFC is more focused on investing in advertising. C) Internal Factors Evaluation (IFE) Matrix This strategy-formulation tool summarizes and evaluates the major strengths and weaknesses in the functional areas of a business, and it also provides a basis for identifying and evaluating relationships among those areas. Intuitive judgments are required in developing an IFE Matrix, so the appearance of a scientific approach should not be interpreted to mean this is an all-powerful technique. A thorough understanding of the factors included is more important than the actual numbers.

Superbowl ad strategy placement for Coke Zero Assignment

Superbowl ad strategy placement for Coke Zero - Assignment Example Coca Cola could connect themselves with one of the teams playing, and have some of its fans wearing jerseys with sponsorship that does not refer directly to the event (Scaria 23). Coke Zero will take advantage of the fact that most Americans do not show up to their workplaces the day after the Super Bowl, while some arrive late. Thus, Coke Zero should launch a campaign on twitter called #Zero Monday, which would be emblazoned on the fans’ jerseys. The viewers would then be directed to the Coke Zero website on searching the term. Coke Zero should launch a campaign to get the day after Super Bowl declared a Federal holiday using fans of a specific team. Some fans could be placed in the crowd with placards inviting citizens to give ideas through twitter on how to turn #Zero Monday into reality using this hash tag. Coke Zero will then seek to tie the campaign to an effort aimed at giving fans of the chosen team a day off, in which they will either mourn, or celebrate the defeat or success of their team. Low Nielsen ratings are bad news for any TV station that makes money out of advertising (Sissors 56). Therefore, for the Tulsa NBS affiliate with low ratings, it is crucial to spike their ratings in order for them to get ad placements from the Ford automobile dealership. One such way is to run special promotions and contests during the week in which Nielsen is due to conduct its sweeps. This will be aimed at spiking the ratings, which will convince the ford dealer that there are just as many people watching the station as other competitors. For example, the TV station can urge its viewers to note the programs being watched in their households, which will encourage households that have Nielsen diaries to watch shows on their channel. The station could also mark the four months during which ratings are held on their

Icelands Business Laws Essay Example | Topics and Well Written Essays - 1000 words

Icelands Business Laws - Essay Example With the exemption to particular agricultural products, Iceland practices a liberal trade policy. Since being reviewed back in the year 2000, there has been no major changes made to Iceland's import system in spite of the entry into force of a new customs law on January 1, 2006. MFN (Most Favored-Nation) applied tariff in Iceland is 5.9% with a high percentage of tariff lines profit from duty free treatment. In agricultural products, average MFN applied tariffs is 18.3% according to WTO definition in comparison to other goods that is only 2.5%. The trade and investment relations in Iceland occur under preferential rules. Under various free-trade agreements, Iceland offers preferential tariffs on imports from its 37 WTO Member Nations. Despite the fact that Iceland's growing number of preferential agreements may be lessened by the nation's application of the Pan-European Cumulation System for rules of origin, this has increased the complexity of its trade system. Other outside factors affecting imports in Iceland include a value-added tax, excise taxes, and some other specific charges. Generally, such charges is considered a burden to small economies like Iceland and is significantly heavier than that of the tariffs themselves falling mostly on imports as Iceland depends on imported products in meeting most of its domestic needs. Export restrictions are practiced by Iceland with the purpose of protecting human and animal health. One specific example is the requirement that should be met by producers of lamb meat to export a percentage of their production in regulating the domestic supply. As a result, export goods made from agricultural raw materials gain from a refund equal to the difference between the cost of raw materials in the international and domestic markets. Iceland's law permits the establishment of free zones. Apart from agriculture, aid coming from the state is low and is generally of a horizontal nature due to the fact that it is focused mainly on research and development, support of small and medium-sized businesses, training, and job creation. Iceland's Environmental Protection Iceland had learned a lesson from the 1783 volcanic eruption and just how much it cost to the environment. The environmental disaster has been described as an amazing and portentous one and full of horrible phenomena (White 1789). The article of Brayshay and Grattan (1995) indicated that the emissions from Icelandic volcanic eruptions are capable of causing serious environmental damage, prompting alarm and panic among the population in locations far from the source. Grattan and Charman (1994) added that the palaeoenvironmental implications of this episode have been considered elsewhere, however the full impact on Britain was clearly profound and more work is needed to examine the wider European picture. The question being thrown for the future will be to seek more systematic evidence of crop damage and the impact of adverse weather on food prices. Nevertheless, valuable information that greatly extend our knowledge not only of the impact of volcanic eruptions on distant societies an d ecosystems have been made available on contemporary newspaper and journal accounts that also provide some new light on the character of the responses of those communities