Factors that Influence the Price of Oil Essay Sample free essay sample

Dubbed as the â€Å"Black Gold† by many economic experts and bookmans worldwide. oil ( more officially referred as Crude Oil or Petroleum ) . has been one of the most of import natural resources in the International Community upon its entryway in the 21stcentury. Indeed. from its first commercial development in the mid-19Thursdaycentury hitherto. oil served as both the drive force and the bargaining tool ( i. e. sticks and carrots ) for every emerging economic system in the universe. In the ultimate sense. at present. oil is critical for every country’s economic growing and economic sustainability. Several wars. peculiarly World War II. have been fought for both the ownership and the entree for oil. Truly. its importance is realized by every Heads of State/Government. As such. it wouldn’t be much of a surprise that within every Government’s national involvements and national dockets come a echt concern for both the entree and the security of that entree to oil ( in other words. the security of imports for non-producing states ) . States that produce oil – or are believed to possess oil ( unconfirmed and/or estimated militias ) – have banded together to organize an International Organization that would function as an superintendent for the ordinance of oil monetary values in the World Market. That International Organization is known as the Organization of the Petroleum Exporting Countries ( OPEC ) . Much like the International Monetary Fund – of which. ensures the stableness of currencies and exchange rates in the World Market – the OPEC. on the other manus. ensures the stableness of oil monetary values in international oil markets with a position of extinguishing harmful and unneeded fluctuations. One of the ways the organisation does this is by enforcing quotas to member states with respects to their oil production per twenty-four hours. As a consequence. the supply of oil neer exceeds the planetary demand for it ; forestalling a lowering of oil monetary values per barrel. In the late-1990’s. Oil Prices were at a low point of about $ 11 per barrel. However. several unexpected events – the September 11 onslaughts. the War in Iraq. etc – have resulted into terrible oil monetary value Hikes in merely less than five old ages. From $ 11 per barrel. oil monetary values skyrocketed to $ 40 and $ 50 per barrel in 2004. Less than three old ages subsequently. oil monetary values continuously experienced farther rushs – with monetary values making every bit high as $ 90 per barrel. In November of 2007. the universe watched closely as oil monetary values reached a record high of $ 98 per barrel ; with states keeping their breath as the monetary values easy and closely climbed to a $ 100. Fortunately. after making a close $ 98. 62. oil monetary values started to fall easy. Several Institutions and Agencies. nevertheless. are non optimistic with future oil monetary values. Most contend that with the go oning pandemonium in the Middle East coupled by the rapid growings of China and India. oil monetary values will doubtless mount to a $ 100 – or even acquire past it. Throughout the old ages. it has been observed that whenever something happens to the planetary oil market. the universe reacts and responds either shockingly or drastically. Indeed. Oil is imperative for every country’s growing and development. As such. it would be apprehensible that whenever the monetary values of oil in the oil market displacement. the universe watches closely. Just how does the monetary value of oil alterations? How is it influenced or. to some extent. controlled? Some sceptics believe that the additions in oil monetary values are really the consequence of deliberate controls from oil bring forthing states. Though rather controversial. there is. as a affair of fact. some truth from the statement. Oil. as some historical events have suggested. can be used as a bargaining tool or a arm against non-producing states. For case. see the Arab-Israeli Conflict of the 1960’s-70’s. Obviously. much of the states in the Arab universe are oil bring forthing states themselves. As such. they have the capableness of really â€Å"controlling† the monetary value of oil by keep backing or cutting the production of oil ; therefore. restricting supply whilst demand additions. As a consequence. oil monetary values skyrockets. Still. this may non be wholly the instance since if oil is intended to be used as a arm. an oil trade stoppage against the supposed enemy should do instead than cutting down on production in order to increase monetary valu es ( as was seen in the 1973 oil trade stoppage against the United States and Europe during the Arab-Israeli Conflict ) . Traveling off from contentions. there are several other factors that either indirectly or straight act upon the monetary values of oil. For one thing. there is the US dollar. In recent times. oil gross revenues have been denominated in US Dollars. As such. alterations in the value of the dollar against other currencies affect OPEC’s determinations on how to bring forth oil and what their quotas should be. For illustration. if the US dollar falls against the Filipino Peso. opportunities are the grosss of OPEC-member provinces that export oil to the Philippines will be much smaller ; hence. ensuing to a pick of either increasing the production of oil or increasing oil monetary values so as to suit their shortages. In 2007 entirely. the US dollar fell somewhat against most currencies in Asia ; particularly in South East Asia. Clearly. this is one factor that led OPEC to increase its oil monetary values ( instead than increase production ) . Still. other factors that led to the addition in oil monetary values is the immense demand coming from developing states – most particularly from Asia. India and China. as mentioned before. are one of the chief subscribers to the demand for oil in Asia. Currently. both countries’ economies’ are turning at an about astronomical rate of 9. 5 % to 10. 5 % severally. As such. it would be rather obvious that a quickly turning economic system would necessitate immense sums of oil for both energy and fuel demands ; plus. both states hold the place for first and 2nd largest populations in the universe. This fact merely perpetuates the inevitable demand for oil more. With all the factors attesting as a premier influence in both the addition and lessening of oil monetary values. likely one of the most of import factors ( and likely the newest to state the least ) of all is the outgrowth of planetary terrorist act. Indeed. since the happening of the events of September 11. planetary terrorist act has been perceived as a planetary menace to both the national security and national involvements of every state in the International Community. Both the usage of force and even the mere menace of the usage of force can be used by terrorists to technically affect or act upon the monetary values of oil in the planetary market. For case. terrorists may endanger an oil bring forthing state to cut down on its oil production. Such a tactic can frighten off possible investors in the industry. Furthermore. it can besides impact the monetary values of major stock markets in the universe. In the ultimate sense. the act of terrorist act can make a series of chained e vents that could decidedly ensue into a immense addition in oil monetary values. Determining the ultimate ground why oil monetary values increases or lessenings is non an easy undertaking. Other than the basic jurisprudence of supply and demand on a macroeconomic graduated table. there are a myriad of other factors that play together about nem con to act upon the monetary values of oil. For one thing. there is war. The presence of war generates a immense demand for oil from its culprits. As such. either monetary values or supply additions in order to take advantage of such an event. Another factor can be the issue of labour and migration. Labor work stoppages from oil bring forthing states can technically impact the production of oil ; therefore. impacting oil monetary values in general. Still. despite the elaboratenesss of understanding the oil market. a batch of bookmans and economic experts still continue to endeavor strongly in understanding it. As said many times. oil is imperative for every country’s economic growing and development. If so. so understanding the oil market is or can be equaled to understanding the hereafter of a state – and that is genuinely a invaluable ability. Cited Beginnings: Al Muhanna. Ibrahim ib Abdul Aziz. â€Å"Oil Price Hike: Reasons and Impacts. † September 2004Arab News( accessed 8 December 2007 ) from hypertext transfer protocol: //www. arabnews. com/ ? page=6 A ; section=0 A ; article=51086 A ; d=6 A ; m=9 A ; y=2004 Mufson. Steven. â€Å"Oil Price Causes Global Shift in Wealth: Iran. Russia and Venezuela Feel the Benefits. † November 2007Washington Post( accessed 8 December 2007 ) from hypertext transfer protocol: //www. washingtonpost. com/wp-dyn/content/article/2007/11/09/AR2007110902573_pf. hypertext markup language Reuters. â€Å"FACTBOX: Why oil monetary values are at a record high. † August 2007Reuters( accessed 8 December 2007 ) from hypertext transfer protocol: //www. reuters. com/article/hotStocksNews/idUSL0135968820070801? pageNumber=4 A ; virtualBrandChannel=0 A ; sp=true BBC News. â€Å"What is driving oil monetary values so high? † November 2007BBC News( accessed 8 December 2007 ) from hypertext transfer protocol: //news. bbc. co. uk/1/hi/business/7048600. short-term memory

Pro Athletes Salaries Essays - Employment Compensation,

Pro Athletes Salaries Here is an example of a Professional Athletes Salary. Kevin Garnett is a 21 year old Basketball player who had taken the A.C.T test three times in High School, failing all three times and had also taken the S.A.T Test once and failed. Kevin decided that he would not go to a collage even though he was the highly recruited #1 basketball player in the nation, and could have had a scholarship to any collage he wanted. So his decision took him to the NBA draft, where he was selected in the first round to the Minnesota Timberwolves.The Timberwolves signed him to a 6 year $125 Million dollar contract to play for them. (Tom Lenard-Opinion columist) Every year we hear of some new name, some new player in the sports news getting a new record contract which sets a much higher mark and blows away the high from the year before. So we ask who's fault is this that theses men and women are getting paid more and more? Most fingers point our way, the peoples way, the fans way. We are the ones that go to these sporting events pay $50 dollars for a ticket, pay a $100 dollars for a jacket, and $20 dollars for a cap of our favorite teams. We are the ones who support these teams and the players. The reason ticket prices keep going up is because money is needed to pay all of our great players. It doesn't help that they know that we will pay these ticket prices no matter how ridiculous they start charging. Michael Jordan makes 33 million a year plus another 40 million in endorsements. Just because our favorite Athlete wears this brand of underwear and our favorite Athlete eats this brand of a hot dog, should we? Should go out and pay these outrageous prices just for an ordinary product? Mr. Jordan makes $170 Thousand dollars a day!(ESPN.com no page) Considering our President of the United States of America only makes $250 Thousand dollars a year , whats does this tell you about our Country that we think that a person that play's a game for a living should be making more than the person that makes some major decisions concerning America? When players get paid this much it puts more pressure on them to perform. When players are not making so much, they are actually working for money , but when they sign a new Million-dollar contract ?Underachieving Millionaires? (Gary Horton-ESPN.com no page). A big payday is a good thing for the person and his family, but might not always be good for the locker room and the Organization writing the checks. When you see a million dollar Running Back and a hundred thousand dollar lead blocker you can see where the problems start.They players will start playing worse if they are unsatisfied with their current contract and the guy who plays with makes way more than you they start thinking about how much their worth. ?Professional Athletes are making too much money in a society that's salaries and wages are traditionally based on the values of ones work?(Jon Shepard-ESPN.com) Professional Athletes are constantly getting in trouble with the law.The players have all this money they are going to go out and spend it and have fun with it.You can turn to the Sports page and read about Rae Carrot a Wide Receiver for the Carolina Panthers in the NFL going to court for murdering his wife, Michael Irvin or Darryl Strawberry once again getting busted for possession of Cocaine and Marijuana or the crazed out lunatic Dennis Rodman kicking a cameraman in the groin.Whethar it's Drug violation or Sexual Assault, it seems that the money is making these players behave badly . If we pay these players millions of dollars to entertain us, then it would be great if the could stay out of jail long enough so that the us the fans can see them play, but most of them end up getting out of prison and found not guilty of the crime because of who they are how much they are worth and how powerful they are. Professional athletes are getting paid millions for just games that

Analytical Essay Sample on Gilgamesh and His Journey

Analytical Essay Sample on Gilgamesh and His Journey The Epic Gilgamesh chronicles the journey of a king. Gilgamesh is a king that flaunts his power and enviably shows his week side in most altercations. Gilgamesh has many trials, some he fails, and some he succeeds. Gilgamesh uses his faults and the help of the gods to fuel his desire to succeed as a human. Gilgameshs journey begins with the meeting of the monster that that a trapper spotted outside his city of Uruk. Its name is Enkidu; he is half man and half beast. This causes conflict in the beginning, but all is solved when the men realize their love for each other. They broke doorposts and the walls shook. He bent his knee with his foot planted on the ground and with a turn Enkidu was thrown. There is not another like you who is as strong as a wild ox now you are raised above all men, and Enlil has given you the kingship. So Enkidu and Gilgamesh embraced and their friendship was sealed. (69) Now that the men are allies they choose to work together. In a dream of Gilgamesh, Enlil of the mountain, declared the destiny of Gilgamesh. (70) He was so distraught because he had yet to make a name for himself. I will set up my name in the place where the names of famous men are written. He and Enkidu went to the forest where the monster Humbaba lived. There they began the search for the monster. Enkidu brought up the point that the forest is quite large and this monster is very mean. (71) Gilgamesh panics, he is worried about his name and what people will say about him. So they call on the God who owns the forest, Shamash. Gilgamesh sacrificed a goat to the god; Shamash accepts it and enables the men to find the monster. When the men finally find Humbaba they panic once again and Gilgamesh prays for help. Glorious Shamash heard his prayer and he summoned the great wind.(81) With the great help of Shamash Gilgamesh fell the monster Humbaba Gilgamesh gained the acclaim he wished for, but if not for the help other the God and Enkidu; Gilga mesh would not have made a name for himself. Gilgamesh cleans up after the kill and attacks the god Ishtar. She finds irresistible him so, she asks him to marry her. Come to me Gilgamesh, and be my bridegroom: grant me seed of your body So things as a couple go well, until Istar accuses Gilgamesh of insulting her. She complains to her father Anu, he doesnt give her what she wants, so she steals the guardian of the underworld, the Bull of Heaven. (87) She sics the Bull of heaven on Gilgamesh, but it ravishes the town of Uruk instead. So Gilgamesh kills it in the honor of the god Shamash. Than in turn angers his new love, the god Istar. Because they have killed the Bull of Heaven, and because they have killed Humbaba who guarded the Cedar Mountain one of the two must die. (89) Enkidu had a dream that this would happen. Oh my brother, such a dream I had last night. Anu, Enlil, Ea, and heavenly Shamash took council together (89). In resentment for his life, Enkidu denounced all that had helped him, even the god Shamash. After those remarks it was decided that Enkidu was the one to die. Gilgamesh was helpless. The gods he so relied on were taking his brother. Showing that the hand that feeds can take and it can give. Because I am afraid of death I will go as best I can to find Utnapishtim whom the gods took after the deluge; and the set him to live the garden of the sun; and to him alone of men they gave everlasting life. (97) Gilgamesh journeys for a great length of time. He reaches a garden of the gods, they tell him to go back, but he keeps going. Finally he is directed to the ferryman of Utnapishtim who takes Gilgamesh to Utnapistim. Upon arrival he introduces himself and immediately askes Utnapistim how he obtained everlasting life, Utnapistim replies that Gilgamesh will know soon enough. Utnapistim tells Gilgamesh of the great flood from which he escaped. Enlil punished or granted Utnapistim and his with wife with everlasting life. Gilgamesh still pushes Utnapistim for gives of immortality. He gives Gilgamesh a task, Gilgamesh is not to sleep for six days and seven nights and he well receive immorality. He fails. Utnapistim tries to send Gilgamesh home, but Gilgamesh will not let him. He gi ves Gilgamesh another task, There is plant that grows under water, it has a prickle like thorn, like a rose; it will wound your hands, but if you succeed in taking it, then your hands will hold that which restores his lost youth to a man. (116) He finds the flower, but he left it out and a serpent took it and shed its skin and became young. So Gilgamesh took Urshanabi, the ferryman back to Uruk. When they arrived, Gilgamesh asked Urshanabi to climb the city wall and gaze at all that Gilgamesh had created. All Gilgamesh wanted was to be with his friend Enkidu forever. He failed, but in doing so he saw the good he had done for his city. He had made a name there with his citizens and in engraving his story on stone. Gilgamesh was a man and a king with superhuman power. The underlying forces in his power were the gods. They helped him to succeed and they helped to him fail. He learned that though his soul goal was immortality, that he did not achieve, he could live and be proud of what he created in his own city. Gilgamesh did leave his mark, after five thousand years people still learn of the journey of the great Gilgamesh.

Environmental Essay Example | Topics and Well Written Essays - 250 words - 6

Environmental - Essay Example trillion, Germany $3.383 trillion, Japan $5.88 trillion and United States $16.02 trillion are higher than that of the Arab World 2641.6819, constituting of twenty-two states (The World Factbook n.p). This is a clear indication that Arab world benefits less from the Middle East Oil. Additionally, comparison between the Palestine GDP (6.641) to Israel (254) shows that Israeli is on the lead. A countries GDP (official exchange rate) is determined by dividing the home-currency-denominated yearly GDP amount with the mutual standard of US $ exchange rate (The World Factbook n.p). This helps in determining the accurate value of output of a particular country. The Arab World’s GDP measure clearly shows that it enjoys less economic power from the Middle East Oil compared to other countries. The information obtained from the CIA World Factbook is credible in challenging stereotypes that many individuals and countries hold about the 22 Arab League members. The information clearly shows that the Arab World enjoys very little from the Middle East Oil while countries like United Kingdom, France, Germany, Japan, and the United States reaping more from the marketplace (The World Factbook n.p). This is because the Arab World enjoys less purchasing power at international marketplace and thus has little economic

Business strategy report Essay Example | Topics and Well Written Essays - 3250 words

Business strategy report - Essay Example This research report tends to demonstrate an in-depth analysis regarding the strategic approaches of RBS Group through critically assessing its range of banking and financial tactics. Moreover, the discussion of this report also incorporates strategy development process by recommending most effective business plans for RBS Group. In order to successfully apply the proposed business strategies, the study have also recommended effective implementation plan that would empower the competitive position of RBS Group and maintain its long-term sustainability in the fiercely growing global banking and financial services industry. Table of Contents 1. Introduction and Paper Objectives 4 2. Strategic Analysis 4 2.1 Industry Analysis 4 2.2 Profile of the Company 5 2.3 Stated Organisational Purpose 6 2.4 External and Internal Analysis 6 3. Strategy Development 7 3.1 Evaluation of RBS Group’s Strategy using Strategy Toolbox 7 3.1.1 External or Environment-Based Strategy 8 3.1.2 Resource ba sed Strategy 9 Strategic Business Units (SBUs) of RBS Group 10 3.2 Propose Strategies for the Next 5 Years at Corporate, Business Stream & Operational Levels: 10 3.2.1 Use of Strategic ‘Toolbox’ Widely 11 3.2.2 Identification of Strategic Options at the Business Stream/SBU Level 12 3.2.3 Using of Portfolio Methodologies for Evaluate and Rank SBU Level Strategies 15 3.2.4 Important Operational Level Strategies Critical to Successful Implementation 16 4. Strategy Implementation 17 4.1 Outline of the Plans for Implementing Strategies 18 4.2 Structuring Major Activities that are Needed in Strategy Impelmentation 19 5. Conclusion 21 References 23 1. Introduction and Paper Objectives Strategic decisions have long been identified to provide an extensive support to contemporary organisations in attaining goals and predetermined business objectives (Teece, 2010). Emphasising this concept, a strategic analysis of RBS with respect to its continuous accomplishment of goals and obje ctives encompassing different business units and branches across the globe, will be undertaken in this report. Moreover, the discussion would assist in developing adequate insights regarding the strategy development process of RBS and the competencies of the applied process to ensure that the organisation is able to cope with the growing competition in the banking and financial industry. The report would finally summarise with the discussion through appropriate theoretical evaluations and explanations in line with the strategic direction and strategic development process implemented by RBS. 2. Strategic Analysis 2.1 Industry Analysis In the past few years the banking and financial business industry had to experience radical oscillations due to the increasing challenges and hurdles. The industry had faced traumatic challenges due to the demise of few major investments and financial services providers from different regions across the globe (Deloitte Center for Financial Services, 201 3). Moreover, the changing trends in the financial markets and continuous investments associated with the strategic decisions have also been witnessed to significantly influence the organisational operations in the respective business industry (Pennington & Thornton, 2010). However, the long-term structural process of the emerging markets can be considered to provide adequate support to the banking and financial business industry to effectively deal with the devastating investment and financial markets (Deloitte Development LLC, 2006). Moreover, the banking

Production And Consumption Inseparability

Production And Consumption Inseparability Inseparability of production and consumption refers to the concepts of interaction and service encounter. The process of simultaneous production and consumption involves the presence of customers, the customers role as a co-producer, customer-employee and customer-customer interactions that makes it unique from a product (Shostack 1977). Researchers often refer to the customers as partial employees in a service setting. During co-production, customer involves himself in self-service (self check-in), using technology and machines offered by the service provider (airlines). 2.1 Service encounters During simultaneous production and consumption, it is the service encounters, that are the critical moments of truth in which customer often develops a perception/ attitude about the business (Bitner et al. 2000) and creates a differentiation from other competitors. In the airline industry, these service encounters are on which the organisation, either thrives or dies based on customers evaluation of their service. And the successful organisations take it a step further to enhance their core or essential features with extended or enhanced features. Service encounters can take place across a range from the traditional face-to-face (check-in, cabin crew), telephone (telephonic check in, booking tickets), and lastly through the internet (web check-in, booking tickets) and at every point the airline industry thrives to make it easier and comfortable (less time consuming) for the customer. A successful organisation is which that exceeds the customers expectations (enhancing features) and not just meeting their expectations (core features). But Harris et al. (2003) suggests that if the core features are not met by the airline industry, it is that leads to customer dissatisfaction. He also suggests that only 5% of the unhappy customers complain to the service providers, thus making it difficult for the service providers to address the issue. What intrigues even more is that the 95% of the customers, who do not complain, talk negatively about the service to their acquaintances. . However, when dissatisfied customers do complain and the problem is resolved to their satisfaction, they are very likely to return. The reasons for dissatisfaction may vary across long queues at check-in or booking counter, incompetent personnel, unsafe website and so on and so forth. Bitner et al. (2000) suggests that in the airline industry core factors vary from friendliness of the staff, knowledge about the service, efficiency, and quality service, sanitary and safe environment. But to create differentiation from their competitors these organisations, provide added or enhancing factors and those include concierge service, reservations, seating by host, lounge/ hotel facilities for delayed flights and so on and so forth. Today in the airline industry, companies do offer most of these features but it is noted that the cost increases for a more pleasurable experience. For example, an Air India flight provides cheaper flights just barely meeting the core features, but Emirates for the same route provides expensive flights with a varied extended factors. What companies like Air India could do to provide a better experience would be to remove/ reduce the unsatisfactory experience (upgrading a customer, complimentary meal in case of delayed flights, trained personnel to deal with unhappy customers). 2.2 Shostacks Models Based on Shostacks Continuum, the package tours (Flights+ Hotels) offered by most airlines, form the intangible end, even though there are tangible ends to be considered. Shostack (1977) suggested that there is no element known as a pure service and that there is always a continuum between the tangible dominant goods and intangible dominant services. The airline industry, the tangible elements include the interiors of the flight, food, seat and also the overall graphic continuity from buying tickets to the attendants uniforms (Shostack 1977). Even though the airline industry is intangible dominant, different market segments require different elements to make it an experience for them. Say for example in the case of Virgin airlines they have three tailored traveling experience for three different markets. In the case of students/ backpackers or during bad economic conditions, it is elements such that reaching from one destination to the other or a no frills flight would be of emphasis on the nuclear core (cheap flights+hostels, bed and breakfast) In the case of business travelers, it would be schedule frequency along with comfort would be most important (a comfortable travel+ hotel with internet, office facilities). Lastly for tourists (with families), it would be unison of in-flight and post-flight services (hotels) that would be of paramount importance (Comfortable flight-but not too expensive+hotel near a tourist destination) But in the case of tangible elements the various markets demand differently. For example, for flights like Air Asia, which offers low cost air travel, the travelers are not provided certain tangible elements such as food and drink in-flight. But these airlines just cater to travelers who wish to travel on a limited budget. So the challenge for other firms is to create an experience for each market, so that it would form an experience for each of them as each of their needs differ from another. The challenge is to understand how consumers perceive a certain service and what as a firm they should do to manage and meet the expectations (Lovelock and Gummesson, 2004). Shostack (1977) defined a model that was termed as total market entity where she argues that a change in one element may change the entity on a whole or partial basis. Say for example in an air travel there, it is a unison of both tangible as well as intangible factors. And some tangible factors just act as service elements/evidence. 1. Peripheral evidence: this refers to a tangible factor, which no or little value if it exists on its own. It is part of the service or is required to experience a service. For example a flight ticket, does not mean anything on its own, but is essential for completion of a service. 2. Essential evidence: Consumers do not own these and can exist on its own as its highly dominant in its impact on a service purchase. An example of an essential element provided by Shostack is the DC-10 aircraft, which was involved in a few crashes in the 1970s. But even though all the issues were resolved, US refused to fly in a DC-10 aircraft that eventually led to scrapping them off completely. This model however does not show how a service functions and this is explained using another model by Shostack-Service Blueprinting. It has been developed to deal with processed, acts and flows and in (fig 4), a blueprint for airline travel has been presented under how airlines try to reduce variability 2.3 Service experience Every time a customer is interacting or having a service encounter, a service experience is taking place and because simultaneous production and consumption takes place, the customer mostly experiences the service in the firms physical surroundings (Groove and Risk, 2001). In some cases the level of involvements between the customer and the employees of the organisation is high and in some cases very low and some with no involvement at all. And the nature of physical environment depends on the nature of service as well as service experience. What the firms aim to do is make profit while creating a satisfactory or unique service experience. What determines an experience is also the nature of the physical space. For a high involvement case, (for example, self check-in, lounge services, website) customer satisfaction can be enhanced, by creative use of physical design (Bitner 1992). In the second case, where the employees play a major role, and where customers have less or no contact (cock-pit, cargo personnel) with the service personnel, the physical environment should be to motivate, satisfy the employees, as no or few customers will experience that. In the last case, where there both customers and employees interact in the same environment at the same level (counter check-in), the servicescape is the most complex as it needs to appeal to the customers but at the same time be efficiently motivating the employees (for example, at a check-in the counter needs to look clean and efficient to the customers, but also comfortable for the employee-nice seats, environment). Thus the environment should be neutral to appeal to bot h customers and employees. Other than the physical environment, it is the customer to whom the service is delivered is what is important. Like mentioned earlier, different customer have different needs and it varies based on their gender, age, social status and so on and so forth. For example, a customers needs travelling on business class will vary from that from one travelling in economy class and the service provider needs to meet each of their needs. What normally happens in the airline industry is that the customer travelling on business class is more looked after than the economy class traveller. This would mean that it creates a negative service experience for the traveller. 2.4 Service Quality Service experience is defined by the quality of service provided by the airlines. Based on this service quality, a conceptual model by (Parasuraman et.al 1988), defines the gap between what the customers expect and what is provided. From this model, it can suggested that to create a better service encounter for the customers: Gap1 This represents the void between the perceptions and expectations between the marketer and the consumer. The key is to understand what the customer expects rather than forming a perception of what they might want. Parasuraman et al. (1988) suggests that this void can be filled if sufficient market research is done prior to offering the service. For example, if an airline firm is to find out what a particular target market is looking for, before offering enhanced factors. Gap 2 This refers to the void between what the company perceives and the service quality specifications. For example, low-budget flights like Air Asia advertise that they provide in-flight entertainment, but the quality is limited (all passengers view the same programme on a single television set) Gap 3 This is the void between quality specification and service delivery. For example in the case of few Asian airline companies, the quality of service provided would be accepted by the home nation. But outside the home nation, the quality specification may not be on par with what the customers expect. For example, in India, Kingfisher airlines claims to provide world class travel experience to its customers. Even though the service provided is perceived to be on par with top airlines in India, the quality of service offered is nowhere close to airlines such as Singapore Airlines, Thai Airways etc. Gap 4 This relates to the void between the standard of quality promised and the service delivered. Thai airways has positioned itself has an airline that brings together quality as well as hospitability (Travel with the Thai touch, Smooth as Silk). But what raised issues and led to negative publicity was when their personnel were found to be rude to passengers. This led to a completely contradicting image of what they claim to be to what is delivered. 2.5 Differentiation To create a differentiation from their competitors, airline firms use the Porters Generic Strategy Model (1980): Cost Differentiation Cost Leadership (No Frills) Rynair, EasyJet, AirAsia Differentiation (Premium price for superior quality) Singapore Airlines, Emirates Cost Focus (Differentiation only for a particular target group) Kingfisher Red-low cost Business travel Differentiation Focus (Premium price for superior quality for a small target group) Concorde flights used by BA, Air France A380 flights-Singapore airlines, Qantas, Air France Scope Narrow Broad Fig 1: Porters Generic Model for the airline industry Airlines Pursuing cost leadership strategy Airlines pursuing an integrated strategy (some stuck in between) Airlines unable to achieve either a cost leadership or differentiation strategy Airlines pursuing a differentiation strategy High Fares Low Fares Low Service Level High Service Level Fig 2: Airlines Realized Business strategies (adapted from Dostaler, Flouris 2004) Using Fig 1 and fig 2, Porters Generic strategy can be explained as: Cost Leadership Cost leadership refers to gaining competitive advantage and giving your company an edge over the others. This can be attained in two ways: Firstly increasing profits by reducing costs. Secondly increasing market share by charging low prices. Airlines such as Air Asian, Rynair have chose to cut costs to a minimum, thus enabling to charge the customers low prices. This tactic helped them gain market share, and also have all their flights fully booked, which leads to further reduction in cost. But where they did compromise in on the in-flight and other services. For example, these airlines do not even provide water in the flight; one is expected to buy them, free seating etc helps them price their tickets low. Smaller airlines even provide just few routes at cheaper prices than their international rivals. But the risk if when competitors follow suit and hence firms should look for means to continuously reduce costs. Differentiation Strategy This involves making ones service different and more unique. This could be achieved by airlines in terms of their airplane types, costs, brand image etc. Singapore Airlines, Emirates have portrayed this image of making travel an experience with their superior quality. But as Porter (1980) argues that for a company using differentiation strategy, they would incur additional costs for research, development, innovation as well as advertising, which are normally recovered from the customers. Focus Strategy Airlines using focus strategy focus on a niche market and this could be a unique low cost airline for a target group or high-end price for another target group. For example, the A380 airplanes used by Singapore Airlines and Emirates charge a premium price of  £3600 for Business Class travel on Emirates from Heathrow to Dubai. So this is for the target group who like to travel with a lap of luxury with pool tables, spas, Internet, lounge area etc during their flight of less than 7 hours. There is very less competition in markets where focus strategies are used. But the risk is when the niche will disappear and when the business and customer preferences change over time. 2.6 VARIABILITY OF SERVICES One other feature of services marketing is its heterogynous nature and organisations strive to reduce the variability that would lead to building a strong brand. The aim is to communicate a persistent image and message to its customers at different places and different times. Service Variability can take place in different ways. Variations in external Conditions -weather, crowding and differences in service locations Variations in service delivery- customer interactions with employees Variations in customer perception-customers perception of a service may differ from place to place and with time too The figure below shows the causes and consequences of service variability in any organisation. High Level of perceived risk for buyers Difficulty in presenting an image of consistent quality Difficulty in developing strong brands Services are produced live Often leads to no chance to correct mistakes before consumption Often reliant on imperfect human inputs May be difficult to blueprint the service Variability of Service Fig 3 : Cause and Consequences of Service Variability The issue of variability leads to difficulty in attaining a uniform output especially in services that require a lot of human interaction. Say for example, we still have not developed technology to eliminate the need of humans completely. Airlines do not use robots to replace the human cabin crews as one human interaction is essential and secondly some technologies are too expensive to adopt suggest that behavior varies not only amongst different employees but also amongst the same employee on different days and with different customers (Lovelock 1983). And even though scripting and blueprinting is used to reduce variability, it still has its demerits. To provide a good service as well create an experience for the customer and to ensure reduced service variability, the airlines use the following techniques: 1. Employee Training As employees are part of any service provided, most airline firms have a rigorous selection and training process. For example, Singapore Airlines hires staff who fit in with the Singapore Girl image and portray the same values as the firm does. Firms who invest a lot in selection and training process mostly offer higher quality service than others. Air India does not provide constant training to its staff and hence issues arise when the staffs do not communicate a coherent message. Staff hired should be able to empathise with the customers as well as trained to deal with different types of unsatisfied customers. Also it is taken care to see that the staff matches the cultural differences of the country they are based in. 2. Scripting Most airlines have pre-determined scripts for each type of service encounter, which consists of either verbal responses or series of actions. The usage of verbal scripts is common while booking a ticket or enquiring about a service. Like for example, when a customer calls a call centre for a query, they normally have a script, which goes by: Good morning, Thank you for calling Malaysian Airlines. My name is Ben and how may I help you? Similarly a scripted message is used after a call or as an apology. In the case of scripted actions, it would how all cabin crews, follow the same actions once passengers are in the flight. All messages and actions are scripted so as to ensure a coherent image, message as well to ensure that the information is communicated at all times. But this has its limitations in terms of how at times personnel feel restricted from offering superior service based on their judgement. 3. Blueprinting Shostack (1982) suggested that blueprinting allows quantitative description of critical service elements, such as logical sequences of actions and processes, time that happen at a place of service delivery. It also defines actions for the place of interaction (front-line) as well for events taking place beyond the line of visibility. (Zeithaml, Bitner et al. 2006) define service blueprinting as a tool for simultaneously depicting the service process, the points of customer contact, and the evidence of the service from the customers point of view. With this description, the authors emphasise the different systemic layers overlapping in a service, from the layer of customer interaction and physical evidence to the layer of internal interaction within the service production process. The figure 4 below shows a service blueprinting for an air travel. Fig 4: Blueprinting for Air Travel Airport exterior Parking Baggage claim Seats Gift shops. Toilets Terminal Food/beverage Magazines Airplane Seats Gift shops. Toilets Terminal X-ray machine Metal detector Conveyor belt Computer/ credit card Desk Ticket Terminal Airport exterior Parking Online/ website Mechanic Check plane Metal detector Conveyor belt Conveyor belt Remove bags Pilot Serve customer Greet customer Send off customer Load bags on plane Check Passenger Greet take bags Registration Leave airport Pick up luggage Immigration Exit plane Fly Board plane Check in Wait at gate Security check Arrive at airport Reservation Support Process Contact Person Backstage Onstage Customer Physical Evidence 4. Quality Audits This is done to monitor the consistent quality provided by the airlines. Ground service analysis covers ticketing, check-in, security, lounges, boarding, departures, transfer, arrivals, and corporate branding. Onboard service analysis is a detailed and complex Qualitative evaluation of all product and service delivery elements core product standards, service efficiency and critical factors of staff service delivery. IATA carries out frequent safety audits. 5. Quality Awards Airlines often advertise the awards they have received for their superior quality. These awards are recognized worldwide and ensure that these airlines provide world-class travel experience for their travelers. For example, in 2009, Singapore Airlines was awarded the Airline of the Year award for its superior quality and safety. These information may not be too relevant for the customers, it just adds enough publicity to make consumers realize how one offers superior service than another thus prompting them to try these airlines on their next travel. 6. Service Recovery However thorough an airline is on its quality and service provided, there would still be occasional glitches. And a feature of any service is its heterogeneous nature, where each service encounter is different from another one. Berry (1995) argues that companies do not empower front line employees to solve problems immediately. A service failure does not automatically lead to a lost customer. But once an issue is identified, if it is dealt with promptly and the right actions are taken to ensure that the customer is satisfied, then it mostly would not lead to a lost customer. But in case of a major issue, the customer might seek financial compensation. 7. Customer Retention Parasuraman et al. (1985) suggests that even though there is a positive relationship between service quality and customer loyalty, above a certain level, additional improvements in quality do not have further impact on customer retention as there is no point in increasing quality costs if it cannot be passed down to the customers. The variability of services poses a high threat when it comes to brand building, but since humans are an integral part and cannot be eliminated completely, steps are taken to provide better training, motivate and encourage employees as they all form part of the service encounter. As Lovelock and Gummesson (2004) suggests that performance is less variable when machine-intensive technologies are used. So as to reduce the consequences of service variability, airline industries have adopted the use of technology so as to reduce if not eliminate the factor of human error. These include: Use of computerised system instead of telephone operators. Use of self-check in Kiosks at airports, mobile check-in (SSTs-Self Service Terminals) Using website to book or amend tickets. The other dimension of variability is the extent to which a service can be altered to meet the demand of individual customers. Services that are manufactured for a large number of customers are difficult to be customised like in the case of air travel, but can be customised in particular areas. For Example scheduled airline service is highly standardized in design but offers modules for customizing specific elements, such as alternative schedules; service to or from different airports in the same metropolitan area; different classes and prices; seat location; and a selection of drinks, food, and other amenities. But with the evolution of technology, industries especially the airlines are adopting technology as far as possible as with rising competition there is no room for error. But not using humans at all is impossible. So as Jim Collins said: people are your most important asset is wrong. The right people are your most important asset. REFERNCES Berry, Leonard L. (1983), Relationship Marketing, in L.L. Berry, G.L. Shostack, and G.D. Upah Emerging Perspectives on Services Marketing. Chicago: American Marketing Association, pp. 25-28. Bitner, M. J. (1992), Servicescapes: The impact of Physical Surroundings on Customers and Employees Journal of Marketing. Vol. 56, pp. 57-71. Bitner, M., Brown, S.W., and Meuter, M. L. (2000). Technology Infusion in Service Encounters Journal of the Academy of Marketing Science. Vol. 28, No.1, pp. 138-149. Dostaler, I. and Floris, T. (2004). Business Strategy and Competition for the Future in the Airline Industry. Airline Magazine. No. 28, pp. 1-4. Harris, K.J., Bojanic, D., and Cannon, D. (2003). Service Encounters and Service Bias: A Preliminary Investigation Journal of Hospitality and Tourism Research. Vol. 27, No. 3, pp. 272-290. Groove, S and Risk, R. (2001), Service theatre: An analytical framework for services marketing in Lovelock and Writz (2004) pp. 78-87. Lovelock. C (1983) Classifying Services to Gain Strategic Marketing Insights, Journal of Marketing, Vol.47, pp. 9-20. Lovelock, C. and Wirtz, W. (2004), Services Marketing, People, Technology, Strategy, USA, Pearson Prentice Hall Lovelock, C., and Gummesson, E., (2004). Wither Services Marketing? In Search of a New Paradigm and Fresh Perspectives. Journal of Services Research. Vol. 7, No. 1, pp. 20-44. Parasuraman, A., Valarie A. Z., and Leonard L. B. (1985), A Conceptual Model of Service Quality and Its Implications for Future Research, Journal of Marketing,Vol. 49, pp. 41-50. Parasuraman. A, Zeithaml. V., and Berry. L. (1988), SERVQUAL: A Multiple-Item Scale for Measuring Consumer Perceptions of Service Quality. Journal of Retailing. Vol. 64, No.1, pp. 12-40. Porter, M.E. (1980). Competitive Strategy: Techniques for Analyzing Industries and Competitors, New York, NY: Free Press. Shostack, G.L (1977). Breaking free from Product Marketing Journal of Marketing. Vol. 41, No. 2, pp. 73-80. Zeithaml, V. A., Bitner, M. J. (2006). Services Marketing : Integrating Customer Focus across the Firm. Boston, McGraw-Hill/Irwin.

Promoting Communal Harmony

Promoting Communal Harmony Promoting Communal Harmony In our country people belonging to various religions live in harmony, but there are occasions when the communal fabric gets disturbed, often on trivial issues. It is the responsibility of all sections of society to ensure peace and brotherhood so that all round development of the country takes places rapidly. The police have a great role to play in promotion of communal harmony and national integration. They come in contact with the general public in the process of performing their duties far more frequently then most other bodies of civil servants of the Government.In such a situation, interaction with vision, understanding, tact, compassion and humour by the police will not only raise the public esteem of the police but will also lead to a healthy police-public relationship, and secure the desired measures of public involvement and cooperation in promotion of communal harmony. Keeping this in mind, the National Foundation for Co mmunal Harmony (NFCH) has been organizing seminars with the aim of effective sensitization of the police officers so that they become the torchbearers of communal harmony and national integration in their day to day functioning.The first such seminar was held at Haryana Police Academy, Madhuban, in August 2007 and the second one in Mumbai in October 2007. The Foundation, which is working silently for promotion of communal harmony, has also supplied reading materials on the role of police in promotion of communal harmony and national integration, constitutional and statutory provisions relating to communal harmony. These seminars have been quite successful in spreading the message of communal harmony and national integration amongst the police officers.The Foundation is an autonomous organization registered as a society under the Societies Registration Act, 1860. It functions under the aegis of the Ministry of Home Affairs and the Union Home Minister is the Chairman of the Governing Council. The principal objectives of the Foundation is to foster communal harmony, fraternity and national integration in general, and facilitate physical and psychological rehabilitation of the child victims of caste, communal, ethnic or terrorist violence, in particular.The NFCH undertakes and assists state governments, local administration, non-governmental organizations, universities, colleges and schools, social activists, scholars, researchers and students in undertaking activities and programmes aimed at promoting harmony at local, state and national levels. Though there have been some incidents of communal violence in certain States, there has been no major communal riot in any part of the country in 2007. Proactive role of the Central and State Governments prevented escalation of communal violence at Gorakhpur in Uttar Pradesh and Indore in Madhya Pradesh last year.All states are advised to keep a close watch on the situation with communal overtones and take early steps to prevent any flare up. Over the last five years the incidents of communal violence have gradually come down. The decline is attributed to the Centre closely monitoring the situation and keeping a strict vigil on the activities of individuals and organizations to ensure that the situation remains under control. The activities of all organizations having a bearing on maintenance of communal harmony in the country are under constant watch of the law enforcing agencies.The Communal Violence (Prevention, Control and Rehabilitation of Victims) Bill 2005 has been introduced in the Rajya Sabha. The Bill has been referred to the Department Related Standing Committee of Home Affairs. The report of the Standing Committee, on the basis of suggestions made by several individuals and organizations with regard to the Bill, has been received. The report and various suggestions received are being examined in the Ministry in consultation with the Ministry of Law and Justice and others for further nece ssary action.The Good Samaritan Playing the role of a Good Samaritan, the NFCH provides financial assistance to children who are orphaned or become destitute in caste, communal, ethic and terrorists violence for their care and education. Assistance is provided at the rate of Rs. 9,600 per annum per child in ‘A’ and ‘B’ class cities and Rs. 9,000 per annum per child at other places without any restriction on the number of children in a family. Additional assistance at the rate of Rs. 1,800 per annum per child is extended for undergoing vocational training.Children in the age group of 0-18 years (extended to 21 years in appropriate cases) whose families are below poverty line (Rs. 31,600 in urban areas and Rs. 22,400 in rural areas per family per annum) are eligible under the assistance provided they pursue their study after the age of five. Assistance is sanctioned for 12 months at a time coinciding with the academic session of the child and is renewed on ye ar-to-year basis. The Foundation aims at providing assistance to every single eligible child victim of violence so that such children, after receiving proper education become responsible and productive citizens.The Foundation has stepped up its liaison with State Governments for ensuring assistance to every eligible child, both in the categories of fresh cases and renewal cases. The NFCH has to necessarily depend on States and particularly District administrations for identification of orphaned or destitute children and for submission of their applications along with necessary documents. Every year awards are given by the Foundation to individual and an institution for their outstanding contribution to the cause of communal harmony and national integration.Instituted in 1997, the award has acquired an aura of its own. The Foundation is striving for greater publicity for the awards so as to ensure that cases of as many deserving cases as possible are placed before the jury for select ion. Aimed at creating awareness about communal harmony and national integration, the Foundation extends assistance to state administrations and non-governmental organizations for holding debates, seminars, workshop, painting, poster, slogan or essay writing competition, musical and cultural programmes, kavi sammelans and mushairas.The Foundation is striving to encourage and support as many organizations as possible to take up, on a significant scale activities related to promotion of communal harmony and national integration. The Foundation extends financial assistance to state/union territory administrations for organizing inter-community ‘milans’ (get together) on important festivals like Eid, Deepawali and Christmas subject to certain monetary ceiling. ‘Sadbhavana clubs’ have been established in educational institutions to sensitize students and motivate them to work for promoting communal harmony and national integration.The clubs aim at inculcating so cial values like fraternity, love and peace among the young generation. They strengthen bonds of unity and affinity and promote belief in the principles of non-violence in the society. The Foundation associates itself with important inter-community festivals like â€Å"Phool-Walon-Ki-Sair† in Delhi, and â€Å"Nauchandi† festival in Meerut and â€Å"Deva Mela† in Barabanki, both in Uttar Pradesh, to promote better understanding among various communities. Communal Harmony Campaign Since its inception in 1992, the Foundation has been taking active part in communal harmony campaign and has extended financial assistance of over Rs. 6 crore for rehabilitation of 8,849 children up to December 31, 2006. It also assists non-governmental organizations under the project â€Å"Cooperation† and grants fellowships for undertaking research in field situation in the communally sensitive districts. The Union Home Ministry on its part gives â€Å"Kabir Puraskar† nat ional award to those promoting communal harmony by showing physical and moral courage while saving the lives and property of members of another community during communal riots, caste conflicts or ethnic clashes.While â€Å"Sankalp Divas† is observed on October 31 every year, â€Å"Qaumi Ekta Week† is observed from November 19 to 25. The Home Ministry also encourages voluntary organizations to undertake activities for the cause of national integration and communal harmony through cultural shows, essay and painting competitions, inter-regional camps and exhibitions. It is the cumulative result of all these efforts that a sense of communal harmony prevails in the country by and large as is reflected in the Home Ministry statistics