Significance of External Factors in Business Economics

Significance of External Factors in Business Economics Contents Introduction Social factors and their significance when it comes to business-economics Legal and Political Legal and Political Factors in the SLEPT analysis Economic factors and their influence on business economics Technological factors and business economics Conclusion References Introduction Maintaining the current market share, or being capable of growing in terms of market share, in this continuously changing world means that businesses cannot afford to stand still. In order to keep ahead in the face of increasing global competition, companies must closely follow developments in their external environment, which consists of: society, legal systems, economic factors, These factors are interrelated and are capable of significant change. The industry chosen in order to analyze these factors and to which extent firms should take these factors into account is the airline industry. The external environment in which airlines operate is particularly volatile and difficult. All the factors mentioned above have a great impact on the airline industry in particular. Therefore the airlines industry is deemed to be an adequate proxy for the analysis. In an attempt to analyze the external factors in order to evaluate how and to which extent companies should assess these external factors the SLEPT method will be used, i.e. an investigation of the Social, Legal, Economic, Political, and Technological influences on a business. Furthermore the reactive and anticipatory approaches will be discussed to evaluate which is more useful. In this report the following airlines will be used to explain the theory supplied: United Airlines and Virgin Atlantic. These were chosen, because of the differences in size and ways of operating. Social factors and their significance when it comes to business-economics By Rink Sikkes Social factors consist mainly out of cultural factors and social trends, namely health consciousness or consumer lifestyle. They also consist out of demographic factors, for example age distribution and population growth. Every culture has different wants and needs, so when a business just focusses on only one culture or group of people, other cultures might feel left out and they will be less attracted to the company its service or product. For this reason a business needs to modify its business strategy to a large variety of cultures. To achieve superior customer service Virgin Airlines has done research into cultural diversity and they offer their staff training in cultural awareness. This way they are able to identify every cultural nuance affecting customer satisfaction.[1] This suggests that businesses have to put a substantial amount of effort into focusing on cultural diversity as they can increase customer satisfaction when they do that. It is crucial that businesses make their customers feel save when they use their products or services. Businesses can lay emphasis on their safety in order to attract more customers. When businesses are struggling to guarantee safety they attract fewer customers; the 9/11 attacks had a sizable impact on Virgin airlines and United Airlines, as the public was frightened to travel by airplane as there was a serious terrorism threat. Especially US domestic flight revenue decreased enormously right after these attacks, but when the threat decreased the revenues increased again.[2] This shows that security has a significant effect on business economics. When a lifestyle of a substantial amount of consumers shifts into a new phase, a company might suffer a severe drop or a sudden surge in market share depending on how the company focusses its product or service. For instance; Virgin Airlines offers the option to hire an extra seat for extra personal space. This is a great opportunity for couples who want some privacy during a flight, or families who demand extra space for their children. There are also certain shifts that cannot be influenced, but have a large influence on business-economics, For example the increased popularity of traveling abroad has been very beneficial for British Airways and Virgin Airlines, but they have not had any influence on this sudden shift in lifestyle, so lifestyles of consumers have a large impact on business economics A business can focus its services and products on people that have a certain amount of health consciousness, but it can also alter its products so they are attractive for any customer regardless of their health consciousness. For example; Virgin airlines and British airways have to account for obese customers that might take more room and more fuel. To remain profitable, they are obliged to either induce a so called fat tax, where customers have to pay more when their weight is above a certain level, or sell the customer a second seat because they do not fit in a single seat. As we have demonstrated, every single one of these factors has a major of impact on business-economics. They are also essential for the success of businesses since the lives of customers revolve around these factors. A business should adapt its strategy proactively to these factors in order to increase its profit and market share. Legal and Political Legal and Political Factors as external factors By Catello Alvino Political and Legal factors Political and legal factors (which are closely related to each other) heavily affect businesses, profoundly influencing their modus operandi. When new laws and regulations are approved, companies and corporations are forced to change their business strategies, sometimes with considerable effects, sometimes with almost any consequence. In the following paragraphs, some example of laws and regulations affecting businesses are being analyzed. Tax policies Tax policies can seriously change the amount of profits that a firm is able to make. It is well known that each country applies a different tax policy, thus offering endless possibilities for a firm to choose its headquarters location, considering the pros and cons of each single situation. Firms having strong relationships with their national government, might be able to get tax exemptions and improve their competitiveness towards their international rival; In fact, in the Russian Federation, in 1997, the flag carrier Aeroflot enjoyed a tax exemption by their government on the purchase of four Boeing aircrafts. This for sure reduced the operating costs for Aeroflot and increased their competitiveness towards the other Eurasian companies who may not have enjoyed the same privilege. Another example of tax policies affecting the businesses is the tax increase on the airlines industry that occurred through the years, especially in the US. It is shown in table 1 that taxes have considera bly gone up, thus increasing the ticket price and losing some customers who cannot afford a flight ticket to certain destinations anymore, often deciding to switch to train travel. Table 1, source: http://www.airlines.org/Pages/Government-Imposed-Taxes-on-Air-Transportation.aspx Trade Unions Trade Unions are a great achievement conquered by the working class in the last two centuries but a sometimes, unpredictable danger for companies. If not handled carefully, working class leaders, especially in western countries where concepts of democracy hold, can seriously damage a company performance. Companies need to engage into a stable relationship with them in order to avoid sudden stoppages of their services, which can lead to serious profit losses. For example in 1985, United Airlines experienced a 29 days long strike which resulted in huge losses in revenues. The company negotiators were able to restore the firm normal functioning only after multiple discussions and trade-offs with the workers’ representatives. This of course could have been avoided with a proactive behaviour, making sure that working conditions were optimal, or moving the company to a country where trade unions are easier to manipulate. Wars and changes in international relationships For companies operating outside their national borders, good and stable relationships between countries are crucial. A war or a diplomatic misunderstanding can turn into a forced exit from some markets or in a loss of revenue. Before deciding to operate in a certain foreign country, a firm should deeply analyze the on-going relationship with its government. Moreover, once they decide to be in business with this hypothetical country, they should be ready to react to any possible event modifying the national political situation. This can turn extremely necessary for companies operating in unstable countries like Southern American, or Eastern European countries. For example, with the recent outbreak of a serious protest in Venezuela, potential airlines passengers may think twice before deciding to travel there. This change in public opinion has for sure reduced the revenue of many companies, including United Airlines, which provides flights from the US to the capital city, Caracas. Economic factors and their influence on business economics By Sybren Dijkstra The economic factors constitute a highly important phase of strategy development for business economics, since economic factors have direct impact on the potential attractiveness of various business ventures. It is highly likely that the economic factor will have a substantial effect on business economics, however it is very hard to take all the variables into account. A direct reactive approach is considered wise when it comes to the economy. Multiple variables, which cover a large part of the economy will be discussed in this section in order to test the hypothesis: personal wealth, competition and governments. The effects of changes in personal wealth can have a substantial effect on business economics globally. Personal wealth is a combination of multiple variables, such as GDP per capita growth,interest rates, inflation rate, unemployment rates, fiscal policy, and monetary policy. Personal wealth can therefore be used as a proxy for the economy. For example, when the interest rates rise people are more likely to safe their money and that affects to which extent people are willing to consume. When comparing the amount of passengers carried (figure 1) and the world GDP per capita (figure 2) they seem to be correlated. The image is confirmed by the revenue stream in figure 3.The hypothesis that a decrease in personal wealth directly affects revenue, hence business economics An equally important part of the economic assessment is identifying potential competitors and ascertaining strengths, weaknesses, opportunities, threats, and possible strategies. Knowing your competitors, remains to be one of the key factors to success. Weaknesses of competitors can signify external opportunities, while major competitive strengths can pose key external threats. The more competitive information is collected, the easier it becomes to outsmart the competition. Virgin Atlantic proved this point. It had a marketing budget less than a third of what British Airways had for marketing, due to focused advertising and outsmarting the competition Virgin Atlantic was able to publish a profit of 68 million pounds, while British Airways had to report a 401 pound operating loss in 2009. Governments form the last, but equally, important part of the analysis, since they have the power to implement and alter economic policy. Governments create the legislation and frameworks in which businesses compete with one another. From time to time the government will change these rules and frameworks forcing businesses to change the way they operate. Business is thus keenly affected by government policy. The airline industry for example had to cope with higher landing charges as well as additional taxes imposed on the air—travelling public directly affecting the revenue and profit. Combining these three factors in the economic assessment in the SLEPT analysis suggest a confirmation of the hypothesis stated at the beginning of this section. Personal wealth, used a proxy for state of the economy, might be directly affecting business economics. Competitors and governments are also capable of directly affecting business economics. This suggests that the economic factors require a pro-active attitude, since it’s crucial to stay ahead of competition and that this can only be done by staying up to date on the new policies and the state of the economy. Technological factors and business economics By Ewan Tauran Technological factors affect business economics in a wide variety of ways. They play a strong role in the external environment of a firm and should be carefully assessed. Technological progress can reduce costs, improve quality and lead to innovation. These developments generally benefit both firms and consumers. However, the effects of technological progress can be very diverse. Failing to keep up with technological trends can cause serious economic damage. The assessment of technological factors is crucial for high-tech industries such as the airline industry. The constant development of technology caters to the growing need of firms to meet issues of sustainability and safety. As mentioned earlier, there are increasingly strict legal rules regarding the materials that need to go into aircraft construction in order to make them safer and more resistant to fire hazards. The rules regarding emission and climate effects are also becoming increasingly strict. Due to technological progress, airline industries can adopt newly developed technologies and conform to these new laws and regulations. As mentioned before, airline industries also encounter another issue; that of increased safety needs and wants by consumers resulting from the terrorist attacks of 9/11.[ET1] In this specific case, adopting new air transportation security technology can help airline industries address these safety issues. Though[ET2] it is the case that the airline industry employs technology extensively in its operations, they rely on aircraft producers such as Boeing and Airbus for their aircraft. With respect to aircraft technology, airline industries are limited to these aircraft producers. Therefore it is important for firms to take advantage of technological advancement in other elements of their operations. An example could be to employ more advanced technology in the front office of an airline industry. This can improve customer service which can result in an increase in ticket sales and consequently overall revenue. Another factor that should be taken into account by firms is technological advancement with respect to social media. Currently, social media is becoming increasingly important to firms all over the world as an effective marketing tool. Airline industries should realize this and adapt to the changing circumstances regarding this global trend. Technological advancements do not always have positive effects on business economics. For example, technological progress with respect to communication and the exchange of information can have serious effects on the demand for air transportation. Technological innovations such as videoconferencing limits the need for face-to-face meetings in business, consequently making the need for air travel obsolete. Individuals who live far apart geographically no longer have to visit each other physically when the opportunity to communicate digitally presents itself as a decent low-cost alternative. Due to the rapid development of technology, firms should stay focused and adapt quickly in order to survive in an increasingly competitive economic climate. At the moment, technology progresses so fast that it is becoming increasingly hard for firms to promptly adapt. Firms who fail to adapt can miss out on all of the potential positive effects from technological advancement and as a consequence lose market share[ET3]. Conclusion When taking all the SLEPT analysis factors into account, they seem to suggest that each and every factors should be taken into account and that each factor requires a pro-active approach. Firstly, the social part of the analysis demonstrates that each and every single one of these factors has a major of impact on business-economics. They are also essential for the success of businesses since the lives of customers revolve around these factors. A business should adapt its strategy proactively to these factors in order to increase its profit and market share. Secondly, the research done on political and legal factors also suggests that these factors require a pro-active attitude towards these factors. Thirdly, the economic analysis suggests that the economic factors require a pro-active attitude, since it’s crucial to stay ahead of competition and that this can only be done by staying up to date on the new policies and the state of the economy. And lastly the technological part of the analysis suggests that due to the rapid development of technology, firms should stay focused and adapt quickly in order to survive in an increasingly competitive economic climate. At the moment, technology progresses so fast that it is becoming increasingly hard for firms to promptly adapt. Firms who fail to adapt can miss out on all of the potential positive effects from technological advancement and as a consequence lose market share[ET4]. However the research for this report does not cover all industries, just the airline industry was used as an example, also the cost of keeping up with all these factors would be astronomical. To come up with a more definitive conclusion more research is required. References IATA. (2014).FACT SHEET: Industry Statistics .Available: http://www.iata.org/pressroom/facts_figures/fact_sheets/Documents/industry-facts.pdf. Last accessed 30 April 2014. Indexmundi. (2011).GDP per capita (PPP) (US$).Available: http://www.indexmundi.com/g/g.aspx?v=67c=xxl=en. Last accessed 30 April 2014. 1 [1] http://www.intersperience.com/images/Virgin Atlantic Case Study.pdf [2] http://seekingalpha.com/article/120335-domestic-air-travel-lowest-since-postminus-9-11 [ET1]I need to change this sentence. [ET2]Paragraph is missing a proper topic sentence [ET3]Conclusion needs more body [ET4]Conclusion needs more body

Native Americans vs. European Colonists Essay -- religious beliefs, e

The European colonists and the Native Americans of North America had very different views on nearly everything they encountered in their lives. Living in vastly different cultures lead both groups to have two extremely different outlooks on four main topics; religious beliefs, the environment, social relations, and slavery, differences which the colonists used to their advantage when conquering the peoples of the New World. The colonists, by saying that the Native Americans were primitive and savage because of their differing and seemingly illogical attitudes, were able to do things that they could never have done to people they believed to be equals. Whether this was a conscious or subconscious method on the part of the Europeans remains hotly debated, but the fact remains that by pointing out the differences of the two main cultures as a negative denoting European superiority, the colonists were able to take the Native American lands and goods without much remorse. When this country began, there were few European colonists with the modern perspective of tolerance towards different cultures. Hardly anyone sought to learn about the Indian culture, very few adopted it as their own, and the majorities were often fearful and anxious toward their new neighbors. These four main differences in religious beliefs, the environment, social relations, and slavery, were what sparked the ill treatment towards the Native Americans, an atrocious treatment that would continue for the next three hundred years in America. Religious beliefs were very important to the first European Colonists who came to America. In Europe during the 1600’s, religion was something that decided a lot of things in a person’s life; what part o... ...iogrosso "The Joy of Sects" and Books on Spirituality and World Religion, Religion Discussion Weblog, Editorial Consultation, Spiritual Direction. Web. 4 Mar. 2011. . Popick, Jacqui. "Native American Women, Past, Present and Future." Lethbridge Undergraduate Research Journal 1.1 (2006). Web. 3 Mar. 2011. . Pritzker, Barry. A Native American Encyclopedia: History, Culture, and Peoples. Oxford: Oxford UP, 2000. Print. Roe, Melissa A. "Indentured Servants." EH.Net | Economic History Services. Lafayette College. Web. 4 Mar. 2011. . Taylor, Alan. American Colonies: The Settling of North America. London: Penguin, 2002. Print. Wiesner, Merry E. An Age of Voyages, 1350-1600. New York: Oxford UP, 2005. Print.

Charity Concert Event for the Benefit of the HIV-positive patients Essay

The â€Å"Rock for a Cause† is a concert intended to help HIV-positive patients in the local hospital. The proceeds of the concert will all go to the local hospital to provide financial and medical   assistance to HIV-positive patients confined at the hospital. Through this commendable event, the company can help hundreds of people afflicted with this dreadful disease in alleviating their disposition.   This project was conceptualized a month ago because the company saw the need to boost its social responsibility. By venturing in this humbling project, the company can promote generosity within the work environment and awareness on the condition of HIV-positive in the hospital.   The company chose HIV-positive patients as the beneficiary of this charity concert because they are the usual victims of prejudice and negative social stigma. Through the company’s initiative,   HIV-positive patients can feel a sense of compassion from other people.   Works Accomplished Since the conceptualization of the project, the following were accomplished: Selection of the theme for the concert which will celebrate the musical hits of contemporary pop rock. Reservation of the venue for the concert which is at the the open area of the park. Processing of the legal permits and documents needed for the concert to materialize. Works in Progress The following are currently being accomplished: Drafting of line up of singers and bands who will perform at the concert. Production of promotional materials including leaflets and posters. Works to be Done The following are pending works to be accomplish: Coordination with the hospital for the proper relegation of the financial proceeds of the concert and meeting with the beneficiaries to inform them about the project. Generation of marketing campaign to promote the concert. Invitation of performers and sponsors for the concert.   So far, there were only few drawbacks experienced during the preparation phase of this project. The most common problem was the time constraint. Supposedly, 80% of the works have already been accomplished but due to limited time and human resources, many are still pending. Despite the impediments, the project is still worth pursuing because of its noble cause. To ensure that the project will run smoothly, additional staff and an extension of two weeks on the deadline are needed. Success lies in the hands of everyone who will participate in this project.

Dr. Mary Edwards Walker, Civil War Surgeon

Mary Edwards Walker was an unconventional woman. She was a proponent of womens rights and dress reform—especially the wearing of Bloomers which didnt enjoy wide currency until the  sport of bicycling  became popular. In 1855 she became one of the earliest female physicians upon graduation from Syracuse Medical College. She married Albert Miller, a fellow student, in a ceremony that did not include a promise to obey; she did not take his name, and to her wedding wore trousers and a dress-coat. Neither the marriage nor their joint medical practice lasted long. At the start of the Civil War, Dr. Mary E. Walker volunteered with the Union Army and adopted mens clothing. She was at first not allowed to work as a physician, but as a nurse and as a spy. She finally won a commission as an army surgeon in the Army of the Cumberland, 1862. While treating civilians, she was taken prisoner by the Confederates and was imprisoned for four months until she was released in a prisoner exchange. Her official service record reads: Dr. Mary E. Walker (1832 - 1919) Rank and organization: Contract Acting Assistant Surgeon (civilian), U. S. Army. Places and dates: Battle of Bull Run, July 21, 1861 Patent Office Hospital, Washington, D.C., October 1861 Following Battle of Chickamauga, Chattanooga, Tennessee September 1863 Prisoner of War, Richmond, Virginia, April 10, 1864 - August 12, 1864 Battle of Atlanta, September 1864. Entered service at: Louisville, Kentucky Born: 26 November 1832, Oswego County, N.Y. In 1866, the London Anglo-American Times wrote this of her: Her strange adventures, thrilling experiences, important services and marvelous achievements exceed anything that modern romance or fiction has produced.... She has been one of the greatest benefactors of her sex and of the human race. After the Civil War, she worked primarily as a writer and lecturer, usually appearing dressed in a mans suit and top hat. Dr. Mary E. Walker was awarded a Congressional Medal of Honor for her Civil War service, in an order signed by President Andrew Johnson on November 11, 1865. When, in 1917, the government revoked 900 such medals, and asked for Walkers medal back, she refused to return it and wore it until her death two years later. In 1977 President Jimmy Carter restored her medal posthumously, making her the first woman to hold a Congressional Medal of Honor. Early Years Dr. Mary Walker was born in Oswego, New York. Her mother was Vesta Whitcom and her father was Alvah Walker, both originally from Massachusetts and descended from early Plymouth settlers who had first moved to Syracuse -- in a covered wagon -- and then to Oswego. Mary was the fifth of five daughters at her birth. and another sister and a brother would be born after her.  Alvah Walker was trained as a carpenter who, in Oswego, was settling into a farmers life. Oswego was a place where many became abolitionists -- including neighbor Gerrit Smith -- and supporters of womens rights. The womens rights convention of 1848 was held in upstate New York. The Walkers supported the growing abolitionism, and also such movements as health reform and temperance.   The agnostic speaker Robert Ingersoll was Vestas cousin.  Mary and her siblings were raised religiously, though rejecting the evangelism of the time and not associating with any sect. Everyone in the family worked hard on the farm, and were surrounded by many books which the children were encouraged to read. The Walker family helped to found a school on their property, and Marys older sisters were teachers at the school. Young Mary became involved with the growing womens rights movement. She may also have first met Frederick Douglass when he spoke in her home town. She also developed, from reading medical books which she read in her home, the idea that she could be a physician.   She studied for a year at Falley Seminary in Fulton, New York, a school which included courses in the sciences and health.  She moved to Minetto, New York, to take a position as a teacher, saving to enroll in medical school. Her family had also been involved in dress reform as one aspect of womens rights, avoiding the tight clothing for women that restricted movement, and instead advocating for more loose clothing.  As a teacher, she modified her own clothing to be looser in the waste, shorter in the skirt, and with pants underneath. In 1853 she enrolled in Syracuse Medical College, six years after  Elizabeth Blackwells medical education. This school was part of a movement towards eclectic medicine, another part of the health reform movement and conceived of as a more democratic approach to medicine than the traditional allopathic medical training.  Her education included traditional lectures and also interning with an experienced and licensed physician. She graduated as a Doctor of Medicine in 1855, qualified as both a medical doctor and as a surgeon. Marriage and Early Career She married a fellow student, Albert Miller, in 1955, after knowing him from their studies.  The abolitionist and Unitarian Rev. Samuel J. May performed the marriage, which excluded the word obey. The marriage was announced not only in local papers, but in  The Lily,  the dress reform periodical of Amelia Bloomer. Mary Walker and Albert Mmiller opened a medical practice together. By the late 1850s she became active in the womens rights movement, focusing on dress reform. Some key suffrage supporters including Susan B. Anthony, Elizabeth Cady Stanton, and Lucy Stone adopted the new style including shorter skirts with pants worn underneath. But the attacks and ridicule about clothing from the press and public began to, in the opinion of some suffrage activists, distract from womens rights.  Many went back to traditional dress, but Mary Walker continued to advocate for more comfortable, safer clothing. Out of her activism, Mary Walker added first writing and then lecturing to her professional life. She wrote and spoke about delicate matters including abortion and pregnancy outside of marriage. She even wrote an article on women soldiers. Fighting for a Divorce In 1859, Mary Walker discovered that her husband was involved in an extramarital affair.  She asked for a divorce, he suggested that instead, she also find affairs outside their marriage. She pursued a divorce, which also meant that she worked to establish a medical career without him, despite the significant social stigma of divorce even among those women working for womens rights.  Divorce laws of the time made a divorce difficult without the consent of both parties. Adultery was grounds for a divorce, and Mary Walker had amassed evidence of multiple affairs including one that resulted in a child, and another where her husband had seduced a woman patient.  When she still could not get a divorce in New York after nine years, and knowing that even after the granting of a divorce there was a five year waiting period until it became final, she left her medical, writing, and lecture careers in New York and moved to Iowa, where divorce was not so difficult.   Iowa In Iowa, she was at first unable to convince people that she was, at the young age of 27, qualified as a physician or teacher.  After enrolling in school to study German, she discovered they did not have a German teacher. She participated in a debate, and was expelled for participating.  She discovered that New York state would not accept an out of state divorce, so she returned to that state. War When Mary Walker returned to New York in 1859, war was on the horizon. When the war broke out, she decided to go to war, but not as a nurse, which was the job the military was recruiting for, but as a physician. Known for:  among the earliest woman physicians; first woman to win the Medal of Honor; Civil War service including commission as an army surgeon; dressing in mens clothing Dates:  November 26, 1832 - February 21, 1919 Print Bibliography Harris, Sharon M.  Ã¢â‚¬â€¹Dr. Mary Walker, An American Radical, 1832 - 1919  . 2009.Synder, Charles McCool.  Dr. Mary Walker: The Little Lady in Pants.  1974.   More About Mary Walker: Profession:  PhysicianAlso known  as:  Dr. Mary Walker, Dr. Mary E. Walker, Mary E. Walker, Mary Edwards WalkerOrganizational Affiliations: Union ArmyPlaces: New York, United StatesPeriod: 19th century