Process Strategy and Analysis: Toyota Motors Case study Essay

Toyota Motor Corporation, Japan’s largest and the world’s #4 carmaker by 2003 sales (after General Motors, Ford, and Daimler Chrysler), had a wide range of products and strong brand names with high quality image. Toyota’s growing reputation for quality and very small numbers of technical problems in its vehicles generated interesting customer loyalty and a growing demand for its products. Toyota management was managing the company’s inventory, costs and capacity very successfully and was applying cost reduction programs very well. Toyota had riving ambition to become greener. The company made a hybrid-powered (gas and electric) sedan- the prius- that had already being snapped up in U.S. and European markets. Toyota also made huge investments in developing fuel-cell technology for its vehicles. Its gas-powered cars, pick-ups, minivans, and SUVs included such models as the Camry, Celica, Corolla, 4Runner, Echo, Land Cruiser, Sienna, the luxury Lexus line, and a full-sized pick-up truck, the v-8 Tundra. Toyota also was making forklifts and manufactured housing, and was offering consumer financial services. With its wide distribution channels, strong channel efficiency and effectiveness, Toyota was both successfully competing with the world’s upper three auto makers and poised to replace GM in the top spot this decade. Toyota was known world-wide for its up-to-date vehicles, strong vehicle design, comfortableness, safety, strong resistance to wind and rollover, low fuel consumption, presence of electronic and other devices in the vehicles, and strong reputation for luxury. Surveys, however, rated the attractiveness and comfort of its passenger cars as mediocre. Also rated mediocre was the off-road excellence of its SUVs. Toyota was a leader in technological improvements, such as drive, production and vehicle construction technology and had a solid ability to design and innovates new products, to differentiate its products, to innovate new vehicle lines, or to extend existing vehicle lines. Global sales of Toyota vehicles were increasing every year beginning in 2001. Toyota showed a growth of 20% in its sales from March 2002 to March 2003 and growth of 49.6% in its net income for the same period. This increase reflected not only the quality of its vehicles, but also Toyota’s strong efficiency in sale operations, applying one-to-one marketing, entering into partnership and joint ventures with other companies world-wide, being price competitive, strongly applying sales incentives such as warranty extensions, and applying advertisement tools such as TV commercials, ads in magazines and newspapers and exhibition presentations. Toyota needed little use of financing packages and radio commercials in its sale incentive programs. Also, Toyota was known for strong after-sale services that helped the company to strengthen relationships with its customers and quality of service provided to them. Toyota had a strong, unique corporate culture that helped the company remain very well organised and highly competitive. Toyota also had strong co-operation with its partners and among its divisions that allowed Toyota to further co-ordinate interdivisional operations. In comparison to its big three competitors, Toyota had strong manufacturing operations with the ability to produce highly innovative products, taking advantage of low cost structures, ability to open new manufacturing plants, benefiting from economies of scale. Transplant assembling. Availability of technology for its production, and availability and standards of sources, the ability to enter new markets, and the like, Also, Toyota had strongly balanced its activities both domestically and internationally. There are five basis ways in approve: (1) reduce resources, (2) reduce errors, (3) meet or exceed expectations of downstream customers, (4) make the process safer, and (5) make the process more satisfying to the person doing it. First, a process that uses more resources than necessary is wasteful. Reports that are distributed to more people than necessary wastes copying and distribution time, material, user read time, and, eventually, life space. Second, for the most part, errors are a sign of poor workmanship and require rework. Typing errors that are detected after the computer printout require opening the file, making the correction, and printing the revised document. Third, meeting or exceeding expectations of downstream customers improves the process. For example, the better the weld, the less grinding required, making the appearance of a finish paint more The fourth way a process can be improved is by making it safer. A safer workplace is a more productive one with fewer lost-time accidents and less workers compensation claims. The fifth way to improve process is to increase the satisfaction of the individual performing the process. Sometimes a little change, such as an ergonomically Make a substantial change in a person’s attitude toward their work. Manufacturing cycle The manufacturing cycle typically occurs at the distributor/manufacturer for retailer/ manufacturer) interface and includes all processes involved in replenishing distributor (or retailer) inventory. The manufacturing cycle is triggered by customer orders or by the forecast of customer demand and current product availability in the manufacturer’s finished-goods warehouse. One extreme in a manufacturing cycle is an integrated steel mill that collects orders that is similar enough to enable the manufacturer to produce in large quantities. In this case, the manufacturing cycle is reacting to customer demand (referred to as a pull process). Another extreme is a consumer products firm that must produce in anticipation of demand. In this case the manufacturing cycle is anticipating customer demand (referred to as a push process). The processes involved in the manufacturing cycle Order arrival from the finished-goods warehouse, distributor, retailer, or customer Production scheduling Manufacturing and shipping Receiving at the distributor, retailer, or customer Order arrival During this process a finished- goods warehouse or distributor sets a replenishment order trigger based on the forecast of future demand and current product inventories. The resulting orders are then conveyed to the manufacturer. In some cases the customer or retailer may be ordering directly from the manufacturer. In other cases a manufacturer may be producing to stock a finished products warehouse. In the latter situation, the order is triggered based on product availability and a forecast of future demand. This process is similar to the retail order trigger process in the replenishment cycle. Production scheduling This process is similar to the order entry process in the replenishment cycle where inventory is allocated to an order. During the production scheduling process, orders (or forecasted orders) are allocated to a production plan. Given the desired production quantities for each product, the manufacturer must decide on the precise production sequence. If there are multiple lines, the manufacturer must also decide which products to allocate to each line. The objective of the production scheduling process is to maximise the proportion of orders filled on time while keeping costs down. Manufacturing and Shipping This process is equivalent to the order fulfilment process described in the replenishment cycle. During the manufacturing phase of the process, the manufacturer produces to the production schedule. During the shipping phase of this process, the product is shipped to the customer, retailer, distributor, or finished-product warehouse. The objective of the manufacturing and shipping process is to create and ship the product by the promised due date while meeting quality requirements and keeping costs down. Distribution Toyota used the traditional distribution channels; vehicles from the production places were distributed to national or regional distribution, which then distributed the vehicles to the local dealers. The three units of Toyota that produced passenger cars, SUVs, light trucks, and mini vans. Toyota was also entering into partnerships with other carmakers world-wide, such as South Korean Hyundai and Chinese carmakers, and used their distribution channels to enter the markets where these partners were predominant. With these activities, Toyota was trying to balance its distribution channels world-wide and to increase the efficiency and effectiveness of their distribution channels. Manufacturing Toyota had manufacturing facilities in 37 countries and sold its products in 200 countries around the world. As the situation deteriorated in 2003, manufacturers were increasingly experiencing inventory problems as they were unable to shift their growing stockpile of cars into the saturated fleet market. With the increasing costs of product storage and reduced retail revenues, coupled with relaxed consumer demand, production cuts was likely to occur in the company. Also, Toyota was looking for ways to open production places in regions like China and Mexico, in order to benefit from cheap labour force and gain competitive advantage. In this process the product is received at the distributor, finished-goods warehouse, retailer, or customer and inventory records are updated. Other processes related to storage and fund transfers also take place. Few companies in the world excel at continuous improvement on a corporate-wide basis like Toyota Motor Corporation. Toyota is perhaps best known for its highly effective production system, dubbed â€Å"lean manufacturing† by an MIT study in the 1980’s (Womack et. Al, 1990). But interestingly, history’s most efficient method of production was not born from a sudden brainstorm by an ingenious individual (although Toyota has had plenty of those over the years). Rather, it evolved into its present state over decades of sustained, high level of continuous improvement activity (Cusumano, 1985). Toyota’s efficiency extends not only to the production floor, but also to product development, prototyping, testing, and all other business operations. Manufacturers the world over have been emulating Toyota’s practices, and have done so with much success (Liker, 1998). However, unlike Toyota, much of the success has been confined to the production floor and little success elsewhere. Toyota’s product development system, the first author found this tool to be used pervasively and with incredible power and effectiveness (Sobek, 1997). Toyota uses it to systematically guide problem-solvers through a rigorous process, document the key outcomes of that process, and propose improvements. The tool is used so pervasively that it forms a keystone in Toyota’s world-famous continuous improvement program. Toyota calls this tool the A3 report. The A3 Problem-Solving Report The A3 report is so named because it is written on an A3 sized paper (metric equivalent of 11† x 17†). Toyota has developed several kinds of A3 reports for different applications. Every report starts with a â€Å"theme† or title. The theme indicates the problem being addressed, and is fairly descriptive. The theme should focus on the problem, and not advocate a particular solution Theme: Every report starts with a â€Å"theme† or title. The theme indicates the problem being addressed, and is fairly descriptive. The theme should focus on the problem, and not advocate a particular solution As Spear and Bowen (1999) elucidate, Toyota indoctrinates its people with its own version of the scientific method—every improvement is designed as an experiment. The A3 problem-solving process is a structure to implement the scientific method. The current condition and root cause constitutes the necessary background research, the target condition and implementation plan outline the experimental design and the follow-up plan states the hypothesis. TQM is based on a number of ideas. It means thinking about quality in terms of all functions of the enterprise and is a start is a start-to-finish process that integrates interrelated functions at all levels. It is a systems approach that considers every interaction between the various elements of the organisation. Thus, the overall effectiveness of the system is higher than the sum of the individual outputs from the subsystems. The subsystems include all the organisational functions in the life cycle of a product, such as (!) design, (2) planning, (3) production, (4) distribution, and (5) field service. The management subsystems also require integration, including (1) strategy with a customer focus, (2) the tools of quality and (3) employee involvement (the linking process that integrates the whole). A corollary is that any product, process, or service can be improved, and a successful organisation is one that consciously seeks and exploits opportunities for improvement at all levels. The load-bearing structure is customer satisfaction. The watchword is continuous improvement. (Ross, 2) Hence TQM requires six basic concepts: A committed and involved management to provide long-term top-to bottom organisational support. An unwavering focus on the customer, both internally and externally. Effective involvement and utilisation of the entire work force. Continuous improvement of the business and production process. Treating suppliers as partners. Establish performance measures for the processes. (Besterfield, Michna, Besterfied & Sacre, p.2) (Crosby, 1979) presented the following steps in order to undertake TQM effectively. Management Commitment: Top management must become convinced of the need for quality and must clearly communicate this to the entire company be written policy, starting that each person is expected to perform according to the requirement or cause the requirement to be officially changed to what the company and the customers really need. Quality improvement team: From a team composed of department heads to oversee improvements in their departments and in the company as a whole. Quality measurement: Establish measurements appropriate to every activity in order to identify areas in need of improvement. Cost of quality: Estimate the costs of quality in order to identify areas where improvements would be profitable. Quality awareness: Raise quality awareness among employees. They non-conformance. Corrective action: Take corrective action as a result of steps 3 and 4. Zero defects planning: From a committee to plan a program appropriate to the company and its culture. Supervisor training: All levels of management must be trained in how to implement their part of the quality improvement program. Zero defects day: Schedule a day to signal to employees that the company has a new standard. Goal setting: Individuals must establish improvement goals for themselves and their groups. Error causes removal: Employees should be encouraged to inform management of any problems that prevent them from performing error free work. Recognition: Give public, non-financial appreciation to those who meet their quality goals or perform outstandingly. Quality councils: Composed of quality professionals and team chairpersons, quality councils should meet regularly to share experiences, problems, and ideas. Does it all over again: Repeat steps 1 to 13 in order to emphasise the never-ending process of quality improvement. (Ross, p. 6-7) Management must participate in the quality program. A quality council must be established to develop a clear vision, set long-term goals, and direct the program. Quality goals are included in the business plan. An annual quality improvement program is established and involves input from the entire work force. Managers participate on quality improvement teams and also act as coaches to other teams. TQM is a continual activity that must be entrenched in the culture- it is not just a one-shot program. TQM must be communicated to all people. The key to an effective TQM program is its focus on the customer. An excellent place to start is by satisfying internal customers. We must listen to the voice of the customer and emphasise design quality and defect prevention. Do it right the first time and every time, for customer satisfaction is the most important consideration. TQM is an organisation-wide challenge that is everyone’s responsibility. All personnel must be trained in TQM, statistical process control (SPC), and other appropriate quality improvement skills so they can effectively participate on project teams. Including internal customers and, for that matter, internal suppliers on project teams are an excellent approach. They understand the process better than anyone else does. Changing behaviour is the goal. People must come to work not only to do their jobs, but also to think about how to improve their jobs. People must be empowered at the lowest possible level to perform processes in an optimum manner. There must be a continued effort to improve all business and production processes. Quality improvement projects, such as on-time delivery, order entry efficiency, billing error rate, customer satisfaction, cycle time, scrap reduction, and supplier management, are good places to begin technical techniques such as SPC, benchmarking, quality function deployment, and designed experiments are excellent for problem solving. On the average 40% of pounds is purchased product or service; therefore, the supplier quality must-be outstanding. A partnering relationship rather than an adversarial one must be developed. Both parties have as much to gain or lose based on the success or failure of the product or service. The focus should be on quality and life-cycle costs rather than price. Suppliers should be few in numbers so that true partnering can occur. Performance measures such as uptime, percent non-conforming, absenteeism, and customer satisfaction should be determined for each functional area. These measures should be posted for everyone to see. Quantitative data are necessary to measure the continuous quality improvement activity. (Besterfield, Michna, Besterfied & Sacre, p.3) The purpose of TQM is to provide a quality product and/or service to customers, which will, in turn, increase productivity and lower cost. With a higher quality product and lower price, competitive position in the marketplace will be enhanced. This series of events will allow the organisation to achieve the objectives of profit and growth with greater case. In addition, the work force will have job security, which will create a satisfying place to work. As previously stated. TQM requires a cultural change. The change is substantial and will not be accomplished in a short period of time. Small organisations will be able to make the transformation much faster than large organisations. (Besterfield, Michna, Besterfied & Sacre, p.3) Hence summarising the key points discussed above, productivity is a major concern of managers. It implies measurement, an essential step in the control process. The productivity measurement of skill workers is generally easier than that of knowledge workers such as managers. Yet managerial productivity is very important, especially for organisations operating in a competitive environment. Production management refers to those activities necessary to manufacture products; it may also include purchasing, warehousing, transportation, and other operations. Operations management has a similar meaning, referring to activities necessary to produce and deliver a service as well as a physical product. The operations management systems model show inputs, the transformation process, outputs, and the feedback system. A variety of tools and techniques make operations more productive. Seven steps are often involved in planning and designing a product and its production. Companies can choose from six different kinds of production layouts. In order to operate the system, the managerial functions of organising, staffing, and leading must be carried out effectively. Controlling requires an information system often supported by computers. (Koontz and Weihrich, 1994; p.653) Among the various tools for planning and controlling operations is operations research, which is the application of scientific methods to the study of alternatives in a problem situation to obtain a quantitative basis for arriving at the best solution. The operation research procedure consists of six steps. Examples of tools are linear programming, inventory planning and control, the just-in time inventory system, and distribution logistics. Other tools and techniques are time-event inventory system, engineering, work simplification, quality circles, total quality management, and a variety of computer-aided approaches. (Koontz and Weihrich, 1994; p.653) References Besterfield, D. H., Michna, C. B., Besterfied, G., H.,   & Sacre, B.   S., (no date available). Total Quality Management, Third Edition, pp. 1-3. Crosby, P., (1979). Quality is Free, New York: McGraw-Hill, 1979. Cusumano, M.A., 1985, The Japanese Automobile Industry: Technology and Management at Nissan and Toyota, Harvard University Press, Cambridge, MA. Koontz, H., and Weihrich, H., (1994). Management: A Global Perspective, Tenth Edition, McGraw-Hill, International Editions, pp.633-653 Ross, J. E., (no date available). Total Quality Management: Text, Cases and Readings, Second Edition, Florida Atlantic University, Boca Raton, Florida, pp. 1-3   Liker, J.K. (ed.), 1998, Becoming Lean: Inside Stories of U.S. Manufacturers, Productivity Press, Portland, OR. Sobek, II, D.K., 1997, Principles that Shape Product Development Systems: A Toyota-Chrysler Comparison, Ph.D. dissertation, The University of Michigan, Ann Arbor. Spear, S. and H.K. Bowen, 1999, â€Å"Decoding the DNA of the Toyota Production System,† Harvard Business Review, Sept.-Oct., 77(5), 97-106. Womack, J., D.T. Jones, and D. Roos, 1990, The Machine that Changed the World: The Story of Lean Production, HarperPerennial, New York.   

Leadership of Tony Fernandes Essay

Today, he has fulfilled all three of his childhood dreams and he attributed this to dreaming big and having the courage to pursue his dreams. Despite having no prior experience in the airline industry, he still went ahead to acquire an airline. With regards venturing into an industry he had no prior experience in, Tony Fernandes said, â€Å"It really was a little bit of stick your finger in the air and hope for the best.† [3] It is evident that Tony Fernandes was not a man who was afraid of taking risks and this can be illustrated by many examples. Acquiring a company that was heavily in debt coupled with having zero experience in the airline industry was seen as a risky move on his part. In fact, he mortgaged his home to purchase the airline for one ringgit, which was accompanied with $11 million of debts. [4] In addition, at that time, the airline industry was not faring so well either because of the 9/11 terror attacks. [5] Despite all the odds stacked against his favor, he still had the courage to pursue his dream, which is indeed admirable. Even if running his business, he is unafraid to take risks and be the first one to try new things. Venturing into the low-cost carrier industry was a risky move on his part. While low-cost carriers had been pretty much established in North America, Ireland and U.K, as well as most Europe, many of the airlines in Asia were still affluent, well-established and often, state-owned airlines. This risk, it would seem, paid off in the end as evident in the fact that nearly a fifth of the Asia’s airline seats are now supplied by low-cost carriers. [6] He is also one of the first CEOs to harness the power of social media networks to sell tickets and market his airline. Air Asia is considered the first airline in Southeast Asia to introduce e-ticketing system, bypassing traditional travel agents. This saved the airline USD 8 per ticket for issuing physical ticket. [7]

Can literature “tell the truth” better than other Arts or Areas of Knowledge? Essay Essay

Even as children, people are on a never-ending quest for â€Å"the truth.† Anyone who has witnessed a toddler incessantly ask his mother â€Å"Why?† can attest to that. Writers, artists, and scientists all have methods of finding â€Å"truth† and telling it to others. While the standards for what truth can be vary between Areas of Knowledge, no Area of Knowledge is significantly more capable of telling the â€Å"truth† than another. Since each area is strictly a human enterprise, they all face difficulties created by human nature, which makes them all equally capable (or incapable) of telling the truth. Before the effectiveness of different Areas of Knowledge in conveying truth can be evaluated, however, it is necessary to define truth, or rather, to clarify its nature. Typically, people rely on their senses, observations, and information taken from sources they believe to be reputable to learn of the truth. History has shown repeatedly, though, that â€Å"common sense,† authority, and consensus gentium are not always the most reliable methods of obtaining truth. For instance, from the 2nd century until the l6th century, people believed in the Ptolemaic system with the Earth as the center of the universe and all of the planets and stars revolving around it. The idea also corresponded well with people’s personal observations of the Earth as stable and the stars and planets as moving and was even supported by the Catholic Church. Today, however, we know (or at least, we think we know), that the Ptolemaic system is incorrect and that the Earth and other planets in our solar system revolve around the sun. What people thought to be true back then because of â€Å"obvious† reasons turned out to be false after all. Can there ever be an absolute truth then? And if there is, is there any way for man to know it and to be certain that he knows? For the foreseeable future, or for possibly all eternity, I believe that absolute truth, if it exists, is beyond our grasp. After all, humans have too many limitations, such as senses that can be deceived. There is no way for humans to know with absolute certainty that what they believe is true, even if it is true. There  always exists the possibility that what we believe to be the truth is not actually the truth. Furthermore, beliefs, experience, and other factors cause different people to have different truths. A psychotic thinks his delusions are true, but sane people tend to believe otherwise. Outside the realm of philosophy, however, this concept of a lack of an absolute truth becomes impractical and cumbersome. As C.S. Peirce said, â€Å"Let us not pretend to doubt in philosophy what we do not doubt in our hearts.† Thus, when addressing the ability of literature, other Arts, and other Areas of Knowledge in conveying truth, truth must be thought of in a different, pragmatic way. The standards set for truth can change, though, across Areas of Knowledge. In literature (in reference to novels, poetry, and other writings aside from scientific and historical nonfiction literature), the author tries to convey his own truth. That is, the message or the â€Å"truth† of the work is tied inexorably to what the author believes to be the truth, and thus is subject to all the factors that have influenced the author. Many great works of literature illustrate this idea, such as â€Å"Master Harold†Ã¢â‚¬ ¦and the Boys. If Athol Fugard had had a different life where he had not acted wrongly towards his childhood friend and felt guilty for the racist act afterwards, his masterpiece would have had a decidedly different view on the â€Å"truth† of racism. The same idea holds true for authors within the magic realism genre of literature, such as Gabriel Garcia Mà ¡rquez and Isabel Allende. In their culture, events such as people levitating in the air are considered perfectly natural. What others outside of their culture think of as figments of their imaginations, they think of as reality and as the truth. As such, truth in literature varies from one author to another. Truth also varies in this way in other Arts. An artist, like a writer, tries to convey his insights about the world. No matter how he does it, it is he who decides what the truth of his work is. As a result, other arts are like literature in that everything affecting the artist affects the â€Å"truth† of the work. The question then is whether literature or other arts are better at conveying what the creator believes to be true. Both face the same problem here in that they are open for interpretation by the audience. Thus, the viewer or listener’s background, beliefs, and other variables play into how well the artist’s â€Å"truth† can be told. Two different people can read the same novel or look at the same painting and uncover different truths. For  instance, the book The Great Gatsby by F. Scott Fitzgerald ends with the line, â€Å"So we beat on, boats against the current, borne back ceaselessly into the past.† An optimistic reader may gather from this line and the rest of the novel that Fitzgerald is emphasizing the â€Å"truth† that perseverance in the face of difficulties may be difficult but is necessary, while a more pessimistic reader may think Fitzgerald is revealing that some of humanities’ efforts are just futile and worthless. Some may even say that other arts face even more difficult problems in this respect because the artist does not write down his/her message, but must instead convey it indirectly by invoking feelings. This â€Å"problem† with other arts, however, is actually dependent upon the audience. For instance, a concerto is much more likely to be able to â€Å"tell the truth† to a child with a limited vocabulary than a Charles Dickens’ novel is. It may be countered, though, that other arts have an advantage over literature in that they need not be translated for various cultures. It is difficult to translate and capture the essence of a literary masterpiece (especially with poetry) because words have connotations that may not translate into other languages. In some cases, the word does not even exist in another language. For instance, the Portuguese word saudade has no equivalent in English because no English word carries the same amount of emotion. Other Arts, however, actually do face this same intercultural challenge because symbols or sounds vary in meaning from one culture to another. The color red symbolizes good luck to the Chinese and permeates their artwork. In some parts of Africa, however, red is strictly a religious symbol that cannot even be worn on clothing. As such, a piece of art that uses the color red heavily and whose message is not clearly evident may be interpreted in different ways. Therefore, both literature and other Arts face the same problems when it comes to the audience and their interpretations. That is not to say, however, that neither literature nor other Arts have a great influence on the masses; often times, it is exactly the opposite. It is highly unlikely, though, that literature and other arts are always able to successfully â€Å"tell the truth,† or in this case, what the writer or artist believes is the truth, to everyone. The natural sciences, however, differ from literature and other arts when it comes to the truth. The â€Å"truth† in science cannot be taken as the scientist’s individual truth, as it can be with the author or poet or artist, but must rather fit set  standards. The scientist’s biases and prejudices must be taken into account and other scientists have to critically evaluate the evidence before any research can be considered to be â€Å"true.† Science faces a problem with truth, however, when it comes to interpreting data. Scientists are able to legitimately ignore some variables in their studies, such as whether or not the participants in a study of how effective a new treatment for cancer is have blue or brown eyes. Other variables are simply beyond their control though, and may affect the outcome of the study, like the diets of the aforementioned participants. These variables affect not only the research, but also whether or not people believe the results. Some may see the inability to control the patients’ diets as a reason to invalidate some conclusions. Furthermore, different people can interpret the same data and come to two conflicting conclusions. There are people who look at the same environmental data as others and still surmise there is no such thing as global warming. Since science is unable to successfully tell everyone the same â€Å"truth,† just like the Arts, it must thus progress in the direction believed to be the most truthful. Some people may argue, however, that the Arts are still better at revealing the truth than the sciences because people must have specific scientific knowledge to obtain truth in the sciences. The Arts, however, also require work and knowledge on the audience’s part. The audience must read between the lines and make inferences, since the writer or artist rarely explicitly states what â€Å"the truth† is. While literature, other Arts, and the sciences have different standards for what can be considered to be the truth, none is more effective than the other at telling the truth. Each must face problems inherent in human nature in conveying their messages and none of these problems can easily be addressed. Nevertheless, none of these Areas of Knowledge should be discarded as methods for communicating truth. Instead, people must individually and collectively evaluate every work or study on its own merits to attain a better grasp of â€Å"the truth.† Bibliography Farrell, Patrick. (2004). Portuguese Saudade and Other Emotions of Absence and Longing. Semantic Primes and Universal Grammar. Empirical Findings from the Romance Languages, ed. by Bert Peeters, Amsterdam and Philadelphia. Fitzgerald, F.S. (1925). The Great Gatsby. New York, NY: Simon and Schuster. Magee, B. (1998). The Story of Philosophy. New York, NY: Dorling Kindersley Publishing, Inc. Peirce, C.S. (1868). Some Consequences of Four Incapacities. Journal of Speculative Philosophy, 2, 140-157.

Consumer Compliance- FTC review Essay Example | Topics and Well Written Essays - 250 words

Consumer Compliance- FTC review - Essay Example For instance, a direct mail ad piece by a local Honda dealer in Maryland described below in some way violates the FTC Act. The direct mail advert by dealer announced something it referred to as â€Å"Extravaganza Savings Event†. According to this ad, a person could supposedly purchase a car â€Å"without any negotiations† and â€Å"as though one was a supplier† for the auto manufacturer. The mailer further stated that the advertised sale was â€Å"as a result of excess inventory†. Further, it is evident from the mailer that the ad â€Å"applied to both new and used cars† because the ad announced that a buyer would be â€Å"entitled to buy a new or used car at a price lower than the current retail selling price†. The offer was to be on for â€Å"only one day† and in bold, large, capitalized fonts, screamed that â€Å"the dealer intended to reduce from its inventory $1,000,000 of previously used cars†. Further, it also mentioned that FINANCE representatives would be available on the material day to ensure that a buyer gets â€Å"the best terms†. Finally, the mailer ad also indicated that after the date of sale, â€Å"all the cars that would not have been sold would then continue being sold at normal market prices† (Hudson, 2007). Hudson, T. B. (2007). Unfair And Deceptive Practices: Entertainment For Everyone But The Dealer. Auto Dealer Monthly, 5(9). Retrieved from

Personal Mission Statement Essay Example | Topics and Well Written Essays - 750 words

Personal Mission Statement - Essay Example My goals and objectives in life are multifaceted and I believe I can achieve them all. The goal is to be successful in my personal life, professional life and become a better person in general. I am a single mother of a wonderful nine year old kid and I would like to be the best mother to my son. My son is my source of my personal happiness and I would like to provide him not only his material needs but also the love and support that would make him the best person he can be. I could not be more than happier to see that my son well taken-cared of and loved. I make sure that I spend quality time with him no matter how busy I am. Professionally, I would like to have a career in the future that is not only financially rewarding but also personally fulfilling as well. I would like to have a career in the future that touches people’s lives and that makes a difference in the community (no matter how small) that I am in. I also would like to have a career in the future that allows me to balance work with my personal life so that I will also have the time and energy to attend to my son. I also would like to contribute something to my community like engaging in some volunteer work to have the personal satisfaction that I made a difference. I believe that these goals can be achieved by following the guidelines set by Steven Covey’s Seven Habits of Highly Effective People. These habits include being proactive, begin the end in mind, put first things first, think win-win, seeking first to understand, then to be understood, synergize and sharpen the saw. These are simple rules or guidelines that enable an individual to become effective in the things that he or she does that would ultimately make him or her successful in whatever undertaking an individual may chose. Being proactive in the Seven Habits simply meant making the right decisions to become effective. In my case, to

Assignment Example | Topics and Well Written Essays - 500 words - 71

Assignment Example Other researchers have noted that the successful completion of a course requires online participation. (Nagel, L., Blignaut, A.S., and Cronjà ©, J.C., 2007) The purpose of the study is to know 1) how online participation affected learning and successful course completion, and 2) how the participation influenced the learning community. (Nagel et. al, 2007) The researchers observed students of an 8-week web-based distance learning course which was part of the curriculum for the students’ Masters degree. (Nagel et. al, 2007) Using specialized computer software such as the ATLAS.tiTM and the WebCT Campus edition student tracking tool, the students’ performance and activities online were tracked and analyzed. The findings revealed that active learning participation not only led to a successfully completed course but also a satisfied experience by the learning community. The failure of some students to get a good grade was attributed to, among others, connection problems. Responses showed that accessibility to the online course material was difficult for several learners because of unreliable Internet service, computer issues and financial constraints. Curiously, results also showed that some students had poor Internet connection but relayed this to their facilitator through text messages or phone calls. Thus, they were able to work out deadlines to successfully complete the course. Few postings and comments on discussion boards directly affected student performance as well. The results revealed that those students who just signed in without collaborating with the community members or those who did not put up a significant number of posts or replies ended up with unsatisfactory grades or dropped the course. Low online visibility and participation which encompass a number of students’ roles (Nagel et. al, 2007) resulted to

Toy as Visual Stimulator for Early Childhood Research Paper

Toy as Visual Stimulator for Early Childhood - Research Paper Example This was demonstrated by measuring the way infants sucked on pacifiers (they typically sucked harder the better they liked something). However, objects such as balls and basic shapes did not instigate a strong reaction in the infants. Most studies that measure infant response to objects use a similar route, measuring the individual baby’s responses through the use of pacifiers and presenting to the infants a variety of objects, familiar and not familiar (Spitz and Woolf 90). Additional studies with infants can be done to help us better understand this concept of visual perception before six months old. For instance, with the advent of technology, more computerized visuals could be created, with not only patterns and faces, which have been so commonly used, but also moving stimuli. Not many tests have been done to see how young infants actually react to moving stimuli. We have established, through current research, that young babies are able to perceive outlines and do have the ir own ways of understanding when they see familiar items and faces. However, their own particular reactions to moving stimuli have not been measured. Of course, young infants are generally not able to follow items side to side, but items placed directly in front of them on a computer screen can still be used in order to measure their reactions. Many studies have been done like this with older babies and toddlers to measure their responses to sounds and colors, generally done by researchers of children’s television shows, like Nickelodeon, and toy companies wanting to sell successful products. However, it would be interesting to see if certain objects could be used to create a show that might be interesting to very young babies, as it may help them... One recent study included putting a variety of faces and other objects on a screen for three-month-old infants to see. Infants responded to all faces, having a heightened response to familiar faces. This was demonstrated by measuring the way infants sucked on pacifiers. However, objects such as balls and basic shapes did not instigate a strong reaction in the infants. Most studies that measure infant response to objects use a similar route, measuring the individual baby’s responses through the use of pacifiers and presenting to the infants a variety of objects, familiar and not familiar. Additional studies with infants can be done to help us better understand this concept of visual perception before six months old. For instance, with the advent of technology, more computerized visuals could be created, with not only patterns and faces, which have been so commonly used, but also moving stimuli. Not many tests have been done to see how young infants actually react to moving stimuli. Many studies have been done like this with older babies and toddlers to measure their responses to sounds and colors, generally done by researchers of children’s television shows, like Nickelodeon, and toy companies wanting to sell successful products. However, it would be more interesting to see if certain objects could be used to create a show that might be interesting to very young babies, as it may help them perceive and learn at an even earlier age. For most parents, the earlier they can assist their child with learning, the better.

A rhetorical analysis on How Society in the United States Views Research Paper

A rhetorical analysis on How Society in the United States Views Abortion and what impact the media has on that view - Research Paper Example 8 Works Cited †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 9 Abstract The aspect of imparting living status on the fetus has profound impacts on the abortion policies which, in most cases, are advocated through the media. The media, therefore, holds a specialized and centralized place in the heart of the abortion debate. US has one of the highly opinionated public on matters pertaining to abortion controversies. Abortion had already become a diabolical issue even before the famous landmark ruling on Roe v. Wade (1973) by the US Supreme Court. This ruling and other subsequent legislations only served to provide the impetus for polarization of opinions with no point of consensus. Many of the opinions that the public holds come courtesy of the media which is accused of being biased. Biased media leads to an influence of the opinions of the public wit hout necessary changing their attitudes. Preface The reason for choosing to do a rhetorical analysis on how society in the United States views abortion and what impact the media has on that view is because of the profound connection existing among media public opinions. The public usually relies heavily on the media to bring to its attention the different issues that happen and affect the country. In this regard, the media is very important in influencing how the public generates opinion on different issues of national interest. The abortion debate has been around for a long time and has become quite contentious due to a polarized public about the way forward. In any democratic society, such an outcome is expected since everyone is entitled to their own views. Much of this polarization is caused by the media which covers news disproportionately in a biased manner. This paper brings together an analysis of different resources that are borrowed from different fields so that the true a ssociation of the media and public perception of the abortion debate can be known. These resources are qualitative in nature and they trace the effects of how the media informs public polices through its partial way of information dissemination. As such, the paper employs a multidisciplinary approach of tackling the central issue of media influence on public debates along the continuum of time. Introduction The aspect of imparting living status on the fetus has profound impacts on the abortion policies which, in most cases, are advocated through the media. Many policies have been crafted to promote fetal rights, which have negatively impacted the women’s right to abortion (Iyengar and Hahn 23). As such, the media has played a crucial role in the analysis and communication of information to the public which has had potential bias. Previous research has shown that the presentation of information to the public impacts the public’s perception of different policies and thei r preferences. Bias in how media houses present information to the public is known to have been in existence for a long time now. Therefore, the public opinion on abortion is of two extreme positions and the media seems not to favor these two extreme groups according to research (Esacove 84). Way back before the famous landmark ruling on Roe v. Wade (1973) by the US Supreme Court, abortion had already

The Future of the Renewable energy of Saudi Arabia(Jeddah) Dissertation

The Future of the Renewable energy of Saudi Arabia(Jeddah) - Dissertation Example This much energy can power the entire nation for 72 years. It becomes evident from the study that as the country lies very near to the equator, it is the best place to harvest solar energy (Aljarbou, 2009). In addition, it is seen that Jeddah has an average of 5.78 kWh/m2/day of insolation because of its higher solar intensity. This is because of the altitude of the place. So, in order to meet the entire energy needs of Jeddah, that is calculated to be around 50.915 GWh/day, the total area required will be 36.64 km2 which is about 1.22 % of the total land area of Jeddah (ibid). Aljarboua also looks into the financial aspects of installing Photovoltaic technologies. Here, the picture is negative. When the economic analysis is conducted using the national renewable energy laboratory guidelines, it is found that the saving to investment ratio (SIR) is very poor in Saudi Arabia as compared to other nations. While the SIR is less than 0.13 in Saudi Arabia, it is much better in other natio ns. The reason for this poor SIR is the low price of energy in Saudi Arabia due to the easy availability of oil resources. That means, if the solar energy technology is to become economically beneficial, either the cost of fossil fuels should go considerably upwards, or the installation costs of the photovoltaic solar energy technologies should come dramatically down. So, in his study, Aljarboua takes the other cheaper forms of harvesting solar energy. Some of them are solar water heating (SWH), and ventilation air preheating (SVP). From the study, it becomes evident that the last two forms of harvesting solar energy are more suitable for Saudi Arabia. While photovoltaic technology has an SIR of 0. 1175, that of SWH is 0.52 and of SVP is 7.78. In addition, the pay back years also vary considerably. If the PV technology requires 149 years, SWH and SVP require only 33.5 and 2.25 years respectively. In fact, the use of solar energy has been rising in Saudi Arabia since 1960. The King A bdulaziz University for Science and Technology’s Energy Research Institute has conducted many studies on the utilization of solar energy. Some practical use of solar energy mentioned in the study are ‘lighting, cooling, water heating, crop/fruit drying, water desalination, operation of irrigation pumps, running of meteorological stations, road and tunnel lighting, road signals and traffic lights’ (â€Å"Renewable energy feasibility study†). Despite all these developments, the practical use of solar energy has not made notable progress. There are various reasons associated with this failure. The first one, according to Said, I.M.Ei-Amin and A. M. Al-Shehri (n.d.), is that oil is easily available in Saudi Arabia. In addition, the oil is more effective as an energy source and it has a considerably lower cost in the nation. The second major issue is the dust effect that reduces the availability of the solar energy by 10-20%. The third most important reason is that while the government provides subsidies for oil and electricity generation, the same subsidy is not available for the use of any non-renewable energy source (ibid). Photovoltaic cells The term ‘photovoltaic’ indicates that electricity is made from light. The most widely used material to make photovoltaic cells is silicon. There are three different varieties of photovoltaic cells; monocrystalline, polycrystalline, and amorphous

Questions Essay Example | Topics and Well Written Essays - 1000 words - 10

Questions - Essay Example Economics on the other hand views sustainability in relation to value because Economics fundamentally examines the relationships between ends and scarce means. Hence, the scope of Economics covers the ability to maintain a financial worth of the products and services over a period of time when they are demanded and needed by constituents of the society and the community. This has to do with elements and aspects of behavioural matters and behavioural techniques that are used by the various constituents as a means of examining and evaluating various variables to identify the way people seek to maximise their ends in relation to the resources available at every point in time. Hence, the position taken by Economics is one that utilises aspects of the rational human being and how s/he seeks to maximise returns of a given stock of resources as opposed to the natural science approach which uses scientific methods to estimate the stock of natural resources without the inclusion of human sent iments and human expectations. Neoclassical Economics is about the use of various aspects of rationality to attain maximum returns from a given level of resources. Thus, the neo-classical Economists argue that the rational consumer must seek to attain the most from a given level of inputs whilst the rational producer also produces the highest volume of products with a given volume of stocks. Thus, in viewing this, neo-classical Economics are meant to provide a framework within which people will gain the most from what they utilise or seek to use. Thus, the two concepts and the two ideas are synthesised to suggest that neo-classical economics seeks to support a position where the society work to attain the most from the environment. Social and Ecological complexity on the other hand asserts that there must be some degree of sensitivity to the consumption of natural resources and in utilising aspects of the natural environment. Hence, the consumer will have to ensure that he

Hofstede's cultural dimension australia vs vietnam (management Essay

Hofstede's cultural dimension australia vs vietnam (management subject) - Essay Example Hofstede says that culture â€Å"is the collective programming of the mind that distinguishes the member of one group or category of people from another†(Tjosvoid and Leung, 2003, p 31) Hofstede has captured cultural values in terms of cultural dimensions which are broad attitudes of the people in a society concerned with identification of evil, good, dirty and clean, moral and immoral, irrational and rational.(Tjosvoid and Leung, 2003, p 31) The work of Hofstede stemming out of a lengthy survey of employees of the well known IBM multinational spread over some 70 countries and his later work have categorised the cultural dimensions in five values of Power Distance (PD) , Uncertainty Avoidance (UA), Individualism and Collectivism (IDV), Masculinity and Feminity (MAS) and Long Term v Short Term Orientation (LTO). (Hofstede, 2001) The five values need to be explained before examining the case of Boost juice organisation of Australia entering Vietnam.Power Distance: Classified as high and low power distance, it signifies the extent to which a person can exercise power against the others. It applies to power equation with the Government, employer and with the family members. If the distance is high, power is considered as concentrated in a powerful minority and if low, it is decentralised meaning that people in the society enjoy freedom. According to Hofstede, some cultures are characterized by high power distance and some others by low power distance. In high power distance, individuals accept power as part of society by which superiors consider their subordinates different from themselves and vice versa. Countries such as India, Africa, Brazil, Singapore, Greece, Venezuela, Mexico and the Philippines have high power equation and people there think power and authority are facts of life. Similarly, countries su ch as Austria, Finland, Denmark, Norway, the United States, New Zealand

The change of resistance of a metal Essay Example for Free

The change of resistance of a metal Essay The power I supply to the circuit will be very important. There must be enough current to measure but not too much which would cause the wire to generate a significant amount of heat, which would affect the result. The current must also remain fairly constant throughout the experiment so any affect it has on the resistance has the same effect on the result. A battery has a relatively low current but in a closed circuit it will drain very fast so it would not be suitable. A power pack would overcome this problem but I will have to keep the output very low. From this equation, Heat Energy = V2t/R it can be seen that p.d, time and resistance determine the amount of heat given out by the wire and thus its effect on resistance. Due to this I want to keep the p. d and time as low as possible and the resistance a value that is not too small. There are also several other problems I will have to overcome if I want to make the experiment as reliable as possible. If I use tap water in my experiment there will be a possible current running through the water due to the slight impurities in the form of ions within the water. This could cause inaccuracies in my results. To overcome this I have decided to use distilled water so my results are as reliable as possible. Another problem I may have is the event of parts of the wire touching in the water, especially if I have a fairly compact coil. To overcome this I have decided to use varnished wire that will guard the wire against unintended conducting. A final consideration is the period of time to supply the current to the wire, if the time is too great then it will cause the wire to considerably heat up which will effect my result, thus I have decided to keep the current running for a minimal amount of time but enough so that the readings on the voltmeter and ammeter are settled and constant. After a preliminary experiment I found I could comfortably fit 5m of varnished, coiled wire in a beaker. I also found that the thinnest available wire I could use was 0. 021 cm in diameter. In conclusion I have decided to use a varnished copper wire of length 5m, with a diameter of about 0. 021cm, which was the smallest available. This should give adequate resistance to measure. I have also decided to use a power pack on a low output setting. Basic Theory The theory of resistance can be very complex to calculate on a molecular scale and it is mainly done by observation. However I can explain in simple terms the theory of how temperature changes the resistance of a material. Electrons colliding with impurities within the vibrating lattice arrangement of metals cause resistance. The energy lost is given out in the form of heat. See diagram bellow. The amount of collisions is dependant on the amount the atoms in the lattice are vibrating. The faster the atoms vibrate the higher the probability of a collision. The temperature of the metal is what affects the vibrating atoms. More heat energy means the atoms vibrate more thus creating higher resistance. Prediction Due to the theory above I predict that the resistance will increase as the temperature of the water rises. From the formulas mentioned earlier and the information from the table I obtained from the Internet, I can predict more accurately what my results may look like. Temperature Resistivity of Copper at 20 Temperature coefficient Resistivity at Temperature Length of Wire Area Expected resistance (Degrees C) Degrees C (ohm m) ? (Ohm m) (m) (Cm2) (Ohms) Plan. I am going to use a beaker of distilled water to vary the temperature of a length of wire, knowing that resistance varies with temperature. To measure the resistance I am going to pass a current through the wire and take readings of the current and potential difference across the wire, which will allow me to calculate the resistance. To do this I will assemble my circuit so the wire is connected to a power pack, I will put a voltmeter in parallel with the wire and the ammeter in series. I will hold the wire in the water my making an MDF support as shown in the diagram with two crocodile clips. I will then heat the water to different temperatures using a Bunsen burner and take a reading every 10? C from 20 to 100? C. I will then turn the power pack on for a period of about 5 seconds to take readings from the ammeter and voltmeter. I will take every reading three times to ensure of no discrepancies between results. I will then average the results. I have decided to use a varnished copper wire of length 5m and diameter 0. 21mm made into a coil. This will give suitable resistance and will change sufficiently to measure the temperature of water. Apparatus needed: MDF piece 5 meters 0. 21mm wire 2 crocodile clips Connecting wires Voltmeter Ammeter Large beaker Bunsen burner, tripod, gauze, mat Power pack Distilled water Thermometer Safety During my experiment I must consider the following:   Caution when using the power pack alongside water   Caution when using boiling water   Use of appropriate equipment when moving boiling water Results Trial 1 Temperature i C Potential Difference (V) Current (A) Resistance (ohms) Trial 2 Temperature i C Potential Difference (V) Current (A) Resistance (ohms) Trial 3 Temperature i C Potential Difference (V) Current (A) Resistance (ohms). Average resistance results Temperature i C Resistance (ohms)   Analysis From the graph you can see that there is positive correlation between temperature and resistance and in this set of results it appears to be linear. There are anonymous results at 60? C and at 100? C. This could have been caused by several things, which I will mention later. My graph also satisfies my hypothesis that as the temperature rises; the resistance of the wire increases also. Firstly I would like to compare my theoretical results with my actual results to see the discrepancies between them and if they are at all related. From the graph you can see that the two sets of data are similar. My actual results are in general slightly higher than the predicted ones. Contact resistance between the crocodile clips and the copper wire could have caused this, especially since the wire was varnished and it was difficult to remove all of the coating. The wire may also have been stretched slightly when I was coiling it, leading to thinner areas of wire, which would have increased the resistance. There may also have been kinks in the wire that would have affected the results. I heated the water to the different temperatures after which I removed the heat. During the time between when I removed the heat and when I took the reading it is possible that the water cooled slightly thus giving lower resistance. Another big influence would have been the heating of the wire by the energy given out by its resistance; this would have created higher resistance. Finally the varnish on the wire may have been inconsistent leading to parts touching in the water thus making the circuit shorter and lowering the resistance. The anonymous result at 60? C could have been made by a general loose connection when I took that reading, caused by the experiment being knocked, as it was consistent through my three sets of readings. A more likely explanation is that two parts of the varnished wire were touching where there may have been a scratch leading to a shorter circuit and thus reducing the resistance. When I took my reading at 100? C I had to keep the Bunsen burner underneath to keep it at this temperature. This could have heated up the wire more than the water did, thus causing a greater resistance as shown in the graph. Evaluation My experiment was successful as I managed to construct and use a system to take measurements. The results were reasonably accurate and allowed me to confirm my prediction. I was pleased that my results were strongly correlated. There are several things I could have done to improve my experiment:   Use of more accurate multimeters would have increased the accuracy. I could have used data logging equipment with a thermometer connected to a computer to monitor my results more carefully and accurately   I could have done the entire experiment several times and taken different readings each time, instead of taking all three readings immediately after one another I could have used different lengths and thickness of wires to further prove my hypothesis   I could have tried a greater range of temperatures of water by raising its boiling point by adding a salt or similar, I could also have lowered the temperature using ice and a salt. I could have also used a lower current or put in a resistor before the wire to reduce the heating effect   I could have used solder connections and thicker wires to reduce any error in faulty connections If I were to repeat the experiment I would consider the above and in general take more readings to remove any anonymous results. Show preview only The above preview is unformatted text This student written piece of work is one of many that can be found in our GCSE Electricity and Magnetism section.

Strategic Planning For British Airways Management Essay

Strategic Planning For British Airways Management Essay The purpose of this paper is to evaluate an effective and efficient strategic planning for airline industry providing British Airways strategic plan. British Airways leading UK market as a leader of the airline industries. This paper evaluate the British Airways strategic planning including the strategic model, Enternal and external environmental enalysis,management risk and strategic v operational risk. This paper is done by secondary data collection process which is totally qualitative data base paper. Most of the information I got from British Airways own website (www.britishairways.com) and some are from some Book, Journals and Articles. Mainly for their (British Airways) business strategy planning they are following some strategic models like Porters five forces model, PESTEL analysis, and SWOT analysis etc. By those analysis organization can understand like British airways can understand that what is their external and internal condition and what is the strength for them ,what is opportunity and weakness and based on those factors they are trying to compete with their competitors and getting good market share in the tourism and hospitality industry. Contents 3 1.1 Objectives 5 1.2 Company Overview 6 1.2.1 Company Structure 6 1.2.2 Corporate Level Structure 7 1.2.3 Business Level Structure 7 1.2.4 Functional Level Structure 7 1.3 Current Strategies 8 2.0 Environmental Analysis(External Analysis) 9 2.1 PESTEL Analysis 9 2.2 SWOT analyses 11 3.0 Strategic Planning Model 11 S 11 Internal Strengths 11 Brand Image 11   Partnerships HYPERLINK #__RefHeading__29263_575820157HYPERLINK #__RefHeading__29263_575820157 Alliances 11   Financial size and stability 11   Terminal 5 11 W 11 Internal Weaknesses 11 Poor employee relations history 11   Reliability and trust 11   Innovation HYPERLINK #__RefHeading__29277_575820157HYPERLINK #__RefHeading__29277_575820157 change 11 0 11 External Opportunities 11 Quality System 11   Competitors forced exit 11   Competitors failing on delivering reliability 11   Emergence of new markets 11 T 11 External Threats 11 Open Skies Agreement 11   Environmental awareness 11   Global economic crisis 11   Lower cost competition 11 3.1 Porters Five Forces 12 4.0 Customer Analysis 13 5.0 Competitor Analysis 15 5.1 Strategic Groups 15 6.0 Internal Analysis 17 6.1 Value Chain Analysis (VCA) 17 17 6.2 Key Strategic Issues 20 7.0 Implementation 22 8.0 Managing Risk 24 9.0 Ethics 24 10.0 Strategic V Operational Conflict 25 11.0 Recommendation 26 11.1 Financial 26 11.2 People 26 11.3 Legal 26 11.0 Conclusion 27 1.1 Objectives The main objective of this paper is to develop the internal external environmental analysis and strategic planning with risk management and business ethics. Specific objectives are following, Evaluate the current strategic position of British Airways. Analyse the strategic Planning Models for British Airways. Analyse British Airways internal and external environment. 1.2 Company Overview British Airways is the UKs largest international scheduled airline. At the side of scheduled services, BA is engaged in the operation of international and domestic carriage of freight and mail, and the ancillary services (Datamonitor, 2008). In association with codeshare and franchise partners, BA fly to more than 300 destinations, and carried more than 33 million passengers, earning over  £8.7 billion in revenue in 2007/08 (British Airways, 2008). Employee headcount in March 2008 stood at 42,377 people (Datamonitor, 2008). Since privatisation in 1987, BA has continued to grow as competition in the market has risen worldwide. In recent times, BA has successfully been labelled the worlds first airline to take part in a scheme to reduce greenhouse gas emissions (2002) and to allow passengers to print online boarding passes (2004) (British Airways, 2008). In 2005, the company saw Willie Walsh become Chief Executive of BA (Flight Global, 2008), who to date has driven the company through the completion of Terminal 5 at Heathrow, amongst other new initiatives. Despite reported and imminent industry hits due to the global economic downturn, BAs future looks promising. As BA announces its aim of becoming the worlds most responsible airline in the latest annual report (British Airways, 2008), great importance lies in developing guiding principles and careful strategic direction to allow the achievement of this goal. 1.2.1 Company Structure When implementing strategy, people are crucial to the success (Johnson et al., 2008), therefore the structure within BA will now be analysed to ensure successful implementation. 1.2.2 Corporate Level Structure (Adapted from British Airways, 2008). At a corporate level, BA has a good structure already in place. There is a new Acting Customer Director on an interim basis, Silla Maizey (British Airways, 2008). She has introduced a new customer service team working with Heathrow Customer Services, designed to put customers first. Using the current structure to implement our strategy, it is recommended that a permanent and not acting director to be recruited. In terms of the technological strategy, no amendments to the current structure are necessary as BA already have systems in place to implement new technology. 1.2.3 Business Level Structure At a business level each department will need to ensure all staff implements the strategies that have come top-down from a corporate level and work within the organisations brand values. Each department must also tailor the corporate level objectives specifically to its own targets. This will help to build the brand, improve its customer relationship focus and achieve the stated objectives. 1.2.4 Functional Level Structure Every function must coordinate with each other to ensure objectives are met and an updated operations manual must be developed. Specifically for the relations strategy, detailed targets must be stated for both the marketing and HR functions with constant data capture and analysis to see whether the targets are being met. Sufficient training on the new onboard technology will be necessary on an ongoing basis to ensure that employees are fully familiar with the service. 1.3 Current Strategies The paper will be designed in consideration of BAs current strategies: Upgrade customer experience via the introduction of text and mobile services for business class customers. Modernise aircraft fleet and offer new services. Manage cost base. Increase corporate responsibility through environmental performance and partnerships. 2.0 Environmental Analysis(External Analysis) For success within the airline industry, an awareness of the external environment is essential. This section aims to highlight the position of the industry, in particular looking at competitors and assessing BAs capability to meet current and future challenges. 2.1 PESTEL Analysis (Source: Johnson et al., 2008, p56) Figure 1-Pastel Analysis Factors BA Implication Political 1. Heavy regulation (AEA, 2009). BA: Compliance is essential if BA wants to continue operations 2.Increased security due to past terrorist threats (DFT, 2008). BA: Sufficient security measures should be in place to ensure consumer confidence and competitive advantage is maintained. Economic 1.Global economic crisis:World growth is projected to just over 2  percent in 2009 (IMF, 2008). Pound weakens especially against the Euro. BA: Possible reduction in the amount of business travel as companies are cutting costs and using alternative means of communication such as teleconferencing. BA is vulnerable as a UK operating airline to a poor exchange rate. 2. Oil prices: declined by >50 % since their peak retreating to 2007 levels. Decline in fuel price = strengthening of the dollar (IMF, 2008) BA: Fluctuations in oil prices and exchange rates will directly affect BAs cost base. 3. UK consumer spending saw its sharpest decline for 13 years between July and September 2008 (Channel 4, 2008). BA: More intense competition Social 1.The UK has an aging population (see appendix 3) (National Statistics Online, 2008). BA:Potential opportunities for growth as older generations havemore time to spend on leisure activities such as international travel. 2. Increasing unemployment (Kollewe and Sager, 2008). BA: Increased bargaining power as an employer. Technological 1.A recent survey revealed that 34% of online consumers plan to use price-comparison sites more in 2009 (NMA, 2009). BA: Increased consumer awareness and therefore bargaining power. 2. Online booking services and check-in is becoming increasingly used by the airline industry. BA: BA must ensure that they remain up to date with these technological advances whilst avoiding becoming overly reliant, as this may isolate certain consumer markets (i.e the elderly) who dont feel comfortable using such technology. Environmental/Ethical 1.Noise pollution controls,and energy consumption controls (DFT, 2008). BA:New legislation (e.g. Climate Change Bill) enforcing tighter environmental regulation may increase operational costs each year. 2.Limited land and for growing airports Expansion is difficult at Heathrow as it would result in a loss in the Londons Green belt area. (BBC News 2006) BA:Limited capacity=>utilisation of capacity. 3.Consumers are becoming increasingly green and more aware of the environmental impact of their actions. BA:Failure to adopt an integrated environmental strategy could lead to a detrimental effect on the BAs reputation and income. 4.Cancellations of flights and loss of baggage (Channel 4, 2008). BA: Such ethical issues could have a detrimental effect on reputation if left unresolved. Legal 1.Collusion and price fixing. BA:Restriction on mergers will have an impact on BAs proposed alliance with American Airlines. 2. Recognition of trade unions and industrial action e.g. Cabin Crew strikes. BA:Good employee relations are essential if BA wants to avoid industrial action and interrupted operations. 3.Open Skies Agreement (AEA, 2009) BA:Opportunity for BA and its competitors to freely transport aircraft between the EU and US. 2.2 SWOT analyses Figure 2-SWOT analyses S Internal Strengths Brand Image   Partnerships Alliances   Financial size and stability   Terminal 5 W Internal Weaknesses Poor employee relations history   Reliability and trust   Innovation change 0 External Opportunities Quality System   Competitors forced exit   Competitors failing on delivering reliability   Emergence of new markets T External Threats Open Skies Agreement   Environmental awareness   Global economic crisis   Lower cost competition 3.0 Strategic Planning Model 3.1 Porters Five Forces (Source: Johnson et al., 2008, p60) It is important to analyse the competitive nature of the airline industry in order to assess the position of BA. The Five Forces tool will enable BA to make strategic decisions in order to increase profitability. Force Strength Competitive Rivalry BA caters for both long haul and short haul flights. Within long haul there is little differentiation between BA and their competitors, in terms of price and service offering. The short haul market is more fragmented with many small players. Direct competitive rivalry is fierce, e.g. Virgin has a website opposing the proposed strategic alliance between BA and AA No Way BA/AA (Virgin Atlantic, 2008). Consolidation of competitors has increased competition. HIGH Power of Suppliers Two aircraft manufacturers = High bargaining power. BA restricted by sole supplier of fuel to the airport. Priority of landing slots is given to historic rights of existing users (IATA, 2008). BA employees use collective bargaining through trade unions in order to increase their bargaining power HIGH Power of Buyers Low concentration of buyers to suppliers means they have little bargaining power. Increased internet usage has amplified awareness and interaction of customers (Keynote, 2008c). MEDIUM Threat of New Entrants Significant barriers to entry: such as the competitive environment, high regularity requirements and high capital cost requirements. Barriers to exit are in place which deters new entrants. The failure of recent airlines such as XL and Zoom is likely to deter new entrants (Times Online, 2008). LOW Threat of Substitutes There are few direct substitutes: Short haul flights: the Eurostar or a ferry. Long haul flights: no notable substitutes. LOW 4.0 Customer Analysis Over the past decade there has been increasing complexity in customer needs, as the customer has become more educated and demanding. Particularly, the following changes have occurred: A shift in demographics to older passengers (Keynote, 2008c). Increased global connectivity allowing the usage of internet and search mediums (e.g. comparison and review websites). Increased requirement for convenience (e.g. new destinations, quick check-in). Price has become more of a priority Segments have become more defined within their needs. Evidence that BA is failing to respond to the changing customer landscape includes: The amount of BA customers recommending their services reduced from 61% in 2006/07 to 59% in 2007/08 (British Airways, 2008). BA have been criticised for slow innovation (Doganis, 2006, Pg 165). Poor reliability and baggage handling (AQR) Failed attempts to target the price conscious consumer through low cost airline operation (Eirma, 2008). 5.0 Competitor Analysis 5.1 Strategic Groups Figure 3 Strategic Group Analysis (Source: Johnson et al., 2008, p73-77.) Figure 3 illustrates that BAs direct competitors are those who operate similar services and lie within the same strategic group. The competition is likely to be most intense within this group as they are seeking similar strategies. Lufthansa and KLM-Air France are the 2 leading European Airlines Member carriers in terms of passenger numbers, with 15.1% and 14.1% respectively of the total number of passengers carried. BA comes in third with 9.3% of the total (Keynote, 2008c). BA face competition from a small number of serious contenders in the UK, with the main contenders being Virgin Atlantic, and United Airlines in the Star Alliance soon controlling BMI (Euromonitor, 2008). Although they do not lie within the same strategic group as BA the advent of low-cost air travel has changed the face of the airline industry. Airlines such as Ryanair and EasyJet have established themselves among the leading carriers in Europe, whilst the more established long-haul carriers such as BA have struggled to keep up with their counterparts growth rates. Moreover the economic downturn and sharp fall in oil prices has caused a price war between Emirates, BA and Virgin Atlantic on the London-Dubai route. Fares have dropped by 30% across the airlines. Thus competition still remains fierce. Based on the strategic group analysis it could be argued that there is a gap in the market for a low cost airline operating a high breadth of service however it is likely the reason no airlines have adopted this strategy is due to the fact that it would be destined to fail. This assumption could be supported by BAs failed attempt to enter this market in recent years (Telegraph, 2002). 6.0 Internal Analysis It is now essential to analyse the internal environment in order to formulate appropriate strategies. 6.1 Value Chain Analysis (VCA) BA have tried to control the system further by forward and backward mitigation. Through controlling many component supplies in-house, and through BA Holidays Plc, BA increases their reach in the value system to the supplier and channel value chains. Figure 6 Value Chain (Adapted from: Johnson et al., 2008, p110) SUPPORT ACTIVITIES FIRM INFRASTRUCTURE Structured hierarchy allows BA to make use of a multitude of specialist knowledge in order to gain competitive advantage over downsized firms. HUMAN RESOURCE MANAGEMENT Invested in the development of customer service training in 2007 attracting the best employees. Speak Up opinion survey encourages employees to provide feedback (British Airways, 2008). TECHNOLOGY DEVELOPMENT BA has added value in this category over smaller companies due to slack resources that can be employed to innovate the service (e.g. individual LCD screens). PROCUREMENT Due to the size and historical business relationships and alliances, BA is able to leverage suppliers and through economies of scale make efficiencies where competitors may fail. PRIMARY ACTIVITIES INBOUND LOGISTICS Stock Control High quality training accredited by City Guilds (British Airways, 2008). Ongoing relationship with suppliers (e.g. Gate Gourmet. OPERATIONS Increased Baggage Security. Quick check-in services and secure online bookings with ability to pre-book additional services. OUTBOUND LOGISTICS Customer Service Large database of airport slots enable passengers to access the majority of destinations from preferred airport. MARKETING SALES Marketing communications to all stakeholders. Brand allowing for large budget to be spent in this field. POST SALE SERVICE Loyalty club card. Update communication on other services Whilst the Value Chain highlights the primary and support activities that add value to BA, there are a number of inefficiencies within these activities that arguably reduce the amount of value provided (see figure 7 and 8). Figure 7 Support Activities Value Loss SUPPORT ACTIVITIES Firm Infrastructure Large bureaucratic infrastructure decreases effective communication and increases inertia. HRM BAs employee opinion surveys attracted a mere 35% response rate in 2007 (British Airways, 2008). Due to high collective bargaining capabilities, BA has contended a number of highly publicised employee relations issues (e.g. Cabin Crew strike over pay, sickness absence, and staffing in 2007 (BBC News, 2007). Technology Development BA has failed to gain recognition for new innovation. Figure 8 Primary Activities Value Loss PRIMARY ACTIVITIES Inbound Logistics High solidarity between supplier employees and BA employees has created a history of negative industrial action. For example, in 2005, BA employees walked out for two days when Gate Gourmet employees were sacked (BBC News, 2005). Operations/Outbound Logistics TV documentary reported on Terminal Five operation difficulties, an emergency landing at LHR, poor baggage handling and flight cancellations (Channel Four, 2008). Marketing Sales A lack of innovation in their marketing communications (e.g. Virgin gaining value over BA). 6.2 Key Strategic Issues Analysis Tool Key Findings Strategic Implications PESTEL Global economic crisis. Higher regulatory requirements. Increasing environmental awareness. Decline in consumer spending. Increased use of the internet by customers. Focus on technological and environmental issues. Porters Five Forces High competitive rivalry and bargaining power of suppliers. Defensive strategies needed to protect market share. Customer Analysis Consumer trends in high convenience and high expectations of service. Ensure changing customer needs are understood and met Strategic Group Analysis Intense competition within strategic group and trend for consolidation. The biggest other threat comes from low cost airlines. Although low cost airlines are the biggest threat to BA, moving into low cost market is not deemed appropriate based on previous failed attempts. Airline Quality Review BA = poor baggage handling, poor on flight entertainment and low customer satisfaction. Service Quality needs to be improved to gain a competitive advantage GE Matrix Highest growth markets; Asia Pacific and Eastern Europe. BA has a strong opportunity for market development in Asia and Eastern Europe. The Value Chain BA adds value; financial size and stability, brand image, industry expertise, and partnerships and alliances. BA loses value to competition; employee relations and performance, marketing delivery, reliability, and slow innovation. BA needs to address the areas where value is being lost to avoid attacking competitor strategies. Resource Based View Strong resources including sole access to hub within largest UK Airport. Strong training competencies. Utilise BA core competences to gain competitive advantage. Financial Analysis Increased profits and lower operating costs. Lower gearing ratios and higher liquidity. Possibility of a loss in 2009 as a result of the economic downturn. Investment resources available. Increased scrutiny on strategic projects for risk assessment. 7.0 Implementation Based on the analysis of strategic options it is proposed that two strategies are implemented simultaneously. These strategies are a people processes focused strategy and technological advancement. Figure 12 details the objectives and performance measures of these two strategies. Figure 12 Strategy Overview Strategy Objectives Performance Measures People processes Aim: Improved stakeholder brand image profitability Utilise databases. Improve service delivery efficiency. Improve internal communication. Implement effective review monitoring. Profit margin increase of 2 3%. Increase repeat purchasing by 25%. Increase customer recommendation from 59% (2007/08) to 70%. Improve employee survey rate from 35% (2007/08) to 80% (Value Chain). Technological advancement Aim: Customer Loyalty Market Share Following succession with test internet implementation, roll out internet on-board internet access. An appropriate pricing strategy involving complimentary service for first class whilst targeting business class as the most profitable market. Continued market research to ensure that this is a valued service and seek opportunities for further development. Install equipment on remaining 244 aircraft. Increase business class market share by 10%. 80% of business class customers purchasing internet usage. Following RD implement 1 new technological service. In order for the chosen strategies to be successful effective implementation is essential to organise and enable success and to manage the changes that will impact BA. 8.0 Managing Risk Risk management helps the organization to identify and address the risks facing their business and trying to increase the probability of successfully achieving their businesses objectives. Types of risk business need to face: Strategic Compliance Financial Operational Three main risk factors affecting all airline are volatility in jet fuel price, foreign exchange and interest rate risks. Interest Rate Risk: BA utilizes swap agreements to manage its interest rate exposure. Foreign Exchange Risk: BA manages its Foreign Exchange exposure. Any surplus of foreign currency is sold at spot or forward for US dollars. 9.0 Ethics An ethics strategy should be concerned with ensuring that all corporate activities are ethical, legal, and within all regulatory guidelines.   An ethics program is more likely to be considered effective if it includes the following components: 1)  Statement of Values The creation and communication of a statement of organizational values is considered to be necessary guidance. 2)  Code of Conduct A code of conduct or an ethics policy that communicates a commitment to ethical behavior throughout the organization, and explains how these values are to be applied in representative situations. 3)  Executive Leadership and a System A plan and systems for the communication, monitoring, and enforcement of the Code of Conduct. Important consideration in this respect, include: Richard Bransons success in forcing British Airways into adopting a Code of Conduct is a warning to companies that do not have a code that they ought to consider adopting one and to those that do that they should make sure it works. Without an effective ethical policy, a company cannot be sure that ethical judgments made by employees are consistent with the strategy of the company and are made at an appropriate level within it. Ethics protects the reputation of the company. British Airways is a classic example, where large amounts of marketing investment in image were undermined by the publics perception of its actions. British Airways experience shows that management may be deluding themselves if they consider that all employees in a company will adopt their values and the strategic importance of ethicality by absorbing knowledge from superiors. 10.0 Strategic V Operational Conflict While strategic and operational planning both offer beneficial aspects, there are some key differences that should be understood. Strategic planning is the formal process of defining the requirements for delivering high payoff results, and for identifying what, and how, to get from current realities to future ones that add value to the organization. It is not rigid nor lockstep, but rather a self-correcting set of defining requirements and relationships for stating what is in terms of results, and moving ever closer to what should be the results and payoffs.   Strategic Planning is long term planning undertaken by senior management (i.e. the executives). It involves making decisions which will work toward reaching an organisations mission and vision statements. Operational planning is day to day planning undertaken by front line managers. They report to middle management and enact the leg work of the strategies developed by middle management to achieve strategic goals. 11.0 Recommendation Although strong and justified strategies have been created within the confines of the report there are a number of issues which BA should take into consideration when implementing the proposed strategies. These are considered briefly below. 11.1 Financial BA should not have much trouble in implementing these strategies. With an increasingly lower gearing ratio and better liquidity they should be able to secure some funding from financial institutions and obtain the rest from retained profits. However, with the current economic conditions, it will still be difficult to obtain funding and BA will not want to increase its gearing too much. 11.2 People The recommended strategy to improve relations will require full support from BAs workforce. As a highly unionised workforce, success in changing the employment relationship will be determined by BAs ability to work efficiently with each recognised union. In regards to implementing change, due to BAs history and size the company may experience organisational inertia or myopia. Again, improvements to customer relations may be hindered by an uncooperative workforce, highlighting the importance of ongoing training and support. Similarly, a technological stance will require BAs employees to develop service knowledge, and it is imperative for the organisation to support them in doing so on a continual basis. 11.3 Legal The use of Wi-Fi on planes is already allowed by the aviation regulators in the UK, Europe and Rest of the World. However, regulatory approval must be achieved before it can be implemented on planes flying to/from USA (Wlanbook, 2008; Row 44, 2008). The use of external legal consultants should be used when implementing both strategies to ensure that legal requirements are met, especially when performing internal and external surveys and the confidentiality of data. 11.0 Conclusion As a result of the external and internal analysis a number of strategic options were proposed. It was concluded that a combined strategy approach to improve service quality was deemed most suitable. Due to the current industry climate we have chosen a strategy to consolidate BAs position as market leader. Due to the scale and scope of BAs operations it was decided that the focus of this report would be on scheduled passenger flights. We would recommend further strategic analysis to implement SBU level strategies. Due to lack of primary research and restricted access to company information there may be limitations in our findings and recommended strategy, however we believe that if the general direction of our suggested strategic intent is followed it will lead to lead to success. Reference Johnson, G.and Scholes, K (2002) Exploring Corporate Strategy.6th Edition.London, UK Prentice Hall. Kathleen B Hass, Richard Vander Horst, Kimi Ziemski (2008).  From Analyst to Leader: Elevating the Role of the Business Analyst Management Concepts, 2008.  ISBN 1567262139. p94: As the discipline of business analysis becomes professionalized HYPERLINK http://www.theiiba.org/Content/NavigationMenu/Learning/Bodyo

Customer Loyalty Cards In Uk Retail Industry Marketing Essay

Customer Loyalty Cards In Uk Retail Industry Marketing Essay UKs retail industry is one of the most organised industries in the world where retailers like Tesco, Mark Spencers and Sainsbury are holding the good position in the market. The purpose of my research project is to analysis the comparison between the customer loyalty programs of in the UK retail industry where most of the retailers are trying their best to control the maximum share of customer through their loyalty program. In UK every retailer is doing or planning to implement a very different customer engagement loyalty scheme so that it could get maximize the customer power through its effective data base management which hold so much information about the customer like customers buying behaviour, income level, spending habits, medical spending, and so on. My research will try to find out the question: Does retailers success is directly related to its successful loyalty program implementation? For getting the best result for the research a qualitative survey interviews will be ta ken from 10 -15 employee of different retailers. Report will discuss the research question, literature review and adopted methodology for the research. Collected data would be analysed through SPSS software and the total research would take around three months to complete. 2. Introduction: Impact of loyalty programs on retailers business is perceived to be very positive despite the fact that some of the very big retailers like Asda are not using these programs on wide scale for getting customer loyalty. In retail industry loyalty programs are very popular and most of the big retailers use this for increasing the business through customers loyalty. Loyalty programs are part of structured Relationship Marketing activities which encourages customer towards loyal buying behaviour and ultimately leads to companys profit. According to Market research done on customers loyalty patterns, it is tough to get exponential growth by launch of a loyalty scheme because competitive forces reduces its impact on overall retail industry. In retail industry a rewards card, club card, loyalty card, or advantage card is cards which give the membership to the customer who hold it. In UK most of the retailer are running loyalty growth model through loyalty cards for creating more business by knowing customers buying behaviour. UK is one of the biggest markets in the world for customer loyalty card market where almost every big retailer is running its loyalty card scheme. In 1981 Gary Wilson invented the first loyalty card or discount card which is known by the name of Passcard and later on it is known as Passkey however few people believed that passcard was not first discount card. In 1982 first loyalty card is started by one of the leading retail named Sainsbury. In November 1993 boots the chemist retails chain first started the loyalty card scheme in UK market and later on in 1997 with the investment of 30 million GBP it launched Boots Advantage card which gout huge success representing the 3rd largest retail loyalty scheme in the UK market with around 17 million customers. My research question analysis the positive co-relation between the retailers success and loyalty card program. Most of the retailers are trying to use loyalty card schemes as most powerful tools for making their business better in this recession period. There are lot of work have been done which tells direct co-relation between loyalty cards scheme and consumer buying behaviour but how successful retailers are because of these loyalty programs is not widely researched yet. One of the prominent retailer Asda dont believe in investing the money in loyalty scheme rather it prefer to offer cheapest product rang to attract the customer loyalty. On the other hand another big retailer Tesco press release said Double points has encouraged more customers to sign up; a higher proportion of transactions are now using a Club card and 18% more households are redeeming Club card vouchers than a year ago(Retail Week, May 2010) Club cards are integral part of some retailers strategy like Tesco, Sainsbury while retailers like Asda are expanding their business very rapidly with loyalty programs so my research will analysis the effectiveness of club card schemes on retailers success. Club card is scheme is very expensive so its not necessary that every retailer is growing only because of these schemes. There are so many loyalty schemes but very little research represented the effectiveness of loyalty program. (Kivetz and Simonson, 2002; Yi and Jeon, 2003) 3. Literature Review: According to Oliver (1997) loyalty is a deeply held commitment to re-buy or re-patronize a preferred product/service consistently in the future, thereby causing repetitive same-brand or same-brand-set purchasing despite situational influences and marketing efforts having the potential to cause switching behaviour. Literature on relationship marketing practices like loyalty card scheme is divided into two groups; one group of researcher believe that loyalty scheme have positive effect on customer loyalty and that will result in increased profitability and revenues of the organization. However on the other hand second group of researcher believe that loyalty program slightly influences retailers revenue and profitability through customers loyalty. Customers shop from other retailer also where they are not attaching to any loyalty program. These researchers believe that customers behaviour is not affected by loyalty schemes rather they shop according to their convenience. Retailers stra tegic planning is to enhance customer loyalty which has positive influence on organisation development, revenues, profitably and culture (Dick Basin, 1997). Customer Loyalty Research Center (2001) described loyalty as the commitment of customer to a particular brand or company. Most researchers have discussed the loyalty card scheme with respect to consumer loyalty. According to Capizzi and Ferguson (2003) one billion people are attached to any kind of loyalty program all over the world. In terms of loyalty schemes satisfied consumers show more loyalty than that of unsatisfied consumer towards the company (Bailey Schultz, 2000). Few researchers Grinnell (2003) and OBrien and Jones (1995) discussed positive effect on customer loyalty however some author like Sharp and sharp 1997 could not find the proof of an impact on customer loyalty of loyalty card schemes. Organisations growth is related to customer loyalty so big retailers try to attract more customer through loyalty programs. Tesco since inception of loyalty program has spent  £150 million through 1% discount to the customers against the point earned. Tesco claims that club card has made it no. 1 retailer in the UK since 1995 when it started loyalty program. According to Rosenspan (1998) loyalty programs dont create customer loyalty towards the companys products or services. Asda also fo cuses on discounting on purchasing rather than on loyalty programs. Some of the author argues about 80-20 law but top 20% customers of loyalty schemes are not always loyal to the one companys product rather they customers look for best value for the money with any retailers. Researchers views are very divided on loyalty programs or customer relationship marketing (CRM) really affect customer loyalty so that companies could grow and be more profitable. According to the Feinberg and Kadam (2002) loyalty programs create differentiation among the retailers rather than impacting on customers purchase behaviour or satisfaction. On the other hand Seybold (2001) counter the above statement by saying that CRM helps companies to enhance their revenues and profitability if they positioned their products according to customers need. Very few retailers try to position their products according to customers needs rather through loyalty schemes they get to know the category wise buying behaviour of customers and by using that data retailers launched own branded products for higher profits. In most of the cases impact of loyalty programs is evaluated post launce of the schemes but for knowing the actual impact of loyalty programs there must be a comparison between pre an d post data. According Sharp and Sharp, 1997 pre launch data of loyalty programs are not available and it cant not be gathered after the scheme launch. He categorised the customers in two group one group of customer who participated in the loyalty scheme called treatment group and another group who did not participated in the loyalty program named as control group. According to him both group must be analysed for getting the real impact of loyalty programs. The retailers are very smart to invest huge amount on these loyalty programs Tesco claims that it has more that 14 million active club card user in 2009 after investing GBP 150 million on relaunch of loyalty scheme. Retailers in UK invest huge money for loyalty programs but are all the retailers are getting bigger only with these schemes or they are using the customers data for launching their own branded products for getting higher market share in highest selling categories.Sainsbusry is the only retailer in UK retail industry which acquired 50 % turnover by adopting the own branded strategy for increasing the market share and profit. According to OBrien and Jones (1995) loyalty schemes creates the customer loyalty if company knows how to use and share that knowledge. Researchers views are divided on both point positive impact of loyalty program and negative impact of program but more authors are inclined towards positive impact of programs on companys success. Majority of programs are planned to increase the repeat purchase of customers and once the repeat purchase increase retailers get increased turnover through the higher footfalls. According to Sharp and Sharp (1997) loyalty programs have the capability to influence the repeat purchase pattern of the customer but the change might be very little but only this kind of marketing practices which can influence customer repeat purchase pattern. Through my research question I would like make a positive co-relation between loyalty programs and customers loyalty in UK retail industry. 4. Research Methodology According to the Zikmund (1997) research methodology is integral part of a report which consist of sampling of data, research strategy, hypothesis, research limitations and other different techniques. According to the literature review impact of loyalty programs on customer loyalty and company performance is positive as well as negative hence there are mixed views of different researchers for both the arguments. My research is to find out positive relation between loyalty program and customer loyalty based on two hypotheses- H1- Retailers which implemented loyalty programs performed much better through enhancing customers loyalty. H2- Customer loyalty is directly related to retailers performance Research Approach According to the Lundahl Skarvad (1999) fundamentally basically there are two kinds of research approaches deductive approach and inductive approach. A deductive approach has been selected as quantitative data have to be collected through the questionnaires. For my research this approach would serve the purpose. Selected research approach is helpful to establish the relationship between loyalty program and customer loyalty. Questionnaire will consist the question related to number of cards retailers having, benefits of cards, frequency of visit to store, redemption benefit and how loyal customer is because of loyalty card. These kinds of question will help in finding the relation between two variables. Data Collection Methods After seeing the accuracy of the outcome data i have selected quantitative method of data collection i.e. through questionnaire survey. There are two kinds of data which can be used for research -primary data and secondary data. During my research Ill collect primary data through conducting questionnaire survey. Than after i would look for secondary data for finding the literature reviews and other data required for the analysis like magazines, newspapers, journals, etc. Questionnaire- According to the Chisnall (1992) there are three different kind of questionnaire personal interviews, self administered questionnaire and telephonic interviews; but I have selected self- completion questionnaire because of its low cost and it gives enough time to respond. Questionnaire will be distributed through the mail to loyalty card holder in the retail industry for finding out the key relation. Most of the question would be close ended in the survey and some of the question would be scale based so that i could get some comparative data within the industry. There are so many factors like price sensitivity, repeat purchase, loyalty, brand loyalty so through these questionnaires specific questions would be based on these key points. Sampling Strategy Questionnaire would be distributed to the 400 customers through mail who are involved in any of the loyalty schemes so that they could give right feedback. Main idea of the research so to find the positive relation between two variables through analysing the customer view in retail industry. Sampling would be done with in UK in different geographical, demographical, age group, gender and income level of the customers. Survey would be send to the customers randomly so that best result could be found out. Sampling of the survey is an important part for this research as most of the research analysis is based on primary data through survey. Unit of analysis in this research would be customers who are involved in any of the loyalty scheme in retail industry.I,ll try to focus more on female respondents because in most of the cases female do shop for the whole family and they can tell the best view about the customer loyalty through loyalty programs. Time Limit Overall research will take around three months to complete as data has to be collected from primary as well as secondary resources. Sampling of the questionnaire and getting its feedback will take around 6 to 8 weeks while data analysis and compiling will take rest of the time. Strength and Limitation of the proposed design Success rate of the research seems to be very satisfactory as there would not be problem to find out the respondents during my research. Most of the UK population is attach to any of the loyalty schemes in the retail industry and through the questionnaires Ill get the expected results. There are very less chances to get low feedback from the customers because time constraint is not attach with this survey and itll not take too much time to complete the survey. Secondary data is another important resource for getting the important data so that a genuine relationship could be find out between the loyalty programs and customer loyalty in the industry. The survey design is having one more strength i.e. low cost attach to it for conducting and designing it. There are so much research have been done related to customer loyalty and customer relationship marketing but there is less literature available on loyalty programs and customer loyalty relationship.Althouth loyalty programs are the part of customer relationship marketing (CRM) and i used those resources as secondary data. Due to time frame random sampling has been selected but some of the respondents might not have experienced the loyalty schemes so results may have some limitation in terms of accuracy but itll not affect the final outcome of the research. 5. Analysis and Interpretation I have taken the quantitative methods of data collection through self administered questionnaire and the objective the questionnaire survey is to recognise the factors which influence the customer loyalty with respect to loyalty programs in retail industry. The first part of the questionnaire would collect the personal information about the customer where as the second part would gather the information about repeat purchase through loyalty programs. The collected data through questionnaire would be analysed through the SPSS software which gives the accurate analysis. The gathered data would be analysed by some quantitative methods like regression, co-relation analysis and hypothesis test. The gathered quantitative data would be examined for reliability according to the Cronbachs alpha values where 0.7 or higher values are the most appropriate value of Cronbachs alpha which reflects the internal reliability of quantitative data. Alpha can take positive as well as negative values but only positive values (less than or equal to 1) would have the significance. This is the widely used method for score. We have to analyse the relationship between two variables so well use the co-relation analysis to analyse the linear relationship. Pearson product-moment correlation coefficient r given by Karl Pearson evaluates the relationship between two variables. If the Value of coefficient can be -1 or +1 if the variables reflect very strong relationship, if the value of coefficient is in between -1 and +1 relationship is less strong positively and negatively but if the value is close to zero than relationship is very weak. Co-relation between loyalty programs and customer loyalty woul d be analysed. Regression analysis is the statistical tools to examine the relationship between a dependent and 1 or more independent variables and Probability distribution can also be used for this analysis. Regression analysis specifically tells how the value of a dependent variable varies when value of one independent variables changes where as other independent variables are constant. Regression analysis is useful to find out the effect of every independent variable on the relationship. Regression analysis will tell the how customer loyalty gets influence by the different actor of loyalty programs run by the retailers. It will also tell which factors of loyalty programs influence the customers repeat purchase pattern to the larger extent. History of regression started with method of least squares analysed by Legendre  in 1805 but now there are three kinds of regression analysis General multiple regression, Linear regression and stepwise multiple regression .The most widely used analysis is G eneral multiple regression analysis which uses all the independent variable to form one linear equation.Minimun number of sample size is required for the regression analysis and that size can be 50 or more. I have taken a good number of sample sizes so that the analysis of the data could give authentic and accurate results. Significance level or unbiased test would be used for hypothesis testing. There are so many factors which influence the customer repeat purchase pattern through loyalty programs and become the base for customer loyalty. Co-relation and regression analysis will be done to analysis the positive relationship between the variables according to the research question. 6. Ethical issues Data collection is very tedious task in terms of ethical issues related to it. There could be following issues which can directly relate to the research. Privacy and Confidentiality Most of the customers wants their information related to their profession as well as personal must be kept secret. During the research this issue could be handled by giving assurance to the customers that your information will be kept only for the research purpose. There are so many software like survey monkey which can be used for maintaining the confidentiality of the customers information. Integrity- Your identification must be disclosed to the customers so that they could freely answer the questionnaire as well as there should not be anything which may destroy the dignity or researcher. There would be some questions based on the customers income level which would be direct question so customer might hesitate in answering them.During the Overall research only these issues might arise as most of the research based on the customer loyalty and customer repeat purchase. 7. Reflections The overall research is based on finding out the positive relation between retailers loyalty programs and customer loyalty which influence the retailers business growth and profitability. The research is planned to get the data from 400 customers who are involved in any kind of loyalty scheme through questionnaire survey in the retailer industry. Business school resources would be used for conducting the research and the collected data would be analysed through SPSS software. I, m expecting 60-70% reply of my survey questionnaire which Ill send to the customers in the city and in university campus also. Research would require a proper time management as the whole research have to be effectively complete in 8-10 weeks. There are following resources would be require for the research like a computer/laptop, access to library or database, database from the industry or company and a supervisor to guide in research. Business school has already organised the training session for the softwar e learning and other required resources for the research so would be sufficient for the research. Customers response to the questionnaire might be low in that case secondary data would be used for analysis of the research and some time customer might give some wrong information in the survey which can jeopardised the research objective. Interaction with the supervisor would give the guideline for the research in planned manner and continuous feedback will give right corrective measure for the research. Research could be more extended as own brand play an important role in the repeat purchase pattern of the customers behaviour. Most of retailers loyalty programs are made to gather info for own brand positioning and according to the time frame i can add this in my research. Proposed research is very realistic and will contribute in retail industry for establishing the relationship between loyalty programs and customers loyalty. The research will also provide the analysis for the customers of loyalty programs and how they affect the performance of the company.