Effect of Politics on Airlines and Breweries

Effect of Politics on Airlines and Breweries The Effect of Political Factors on the Airline Industry and the Brewing Industry, 2005 Politics has a huge impact on all businesses, and the range of its influence is broad. Political factors include statutes which may be implemented because of a UK governmental decision or a decision in Europe, or by the UK being a signatory to an international agreement. Other legislation arises in response to issues such as terrorist threats. Other political influences include trade agreements, restrictions and opportunities arising from foreign governments’ policies or opposition groups in the form of political parties or pressure groups formed by the public to address specific issues, who may challenge, delay or obstruct government plans. This essay looks at the impact of recent political factors on the airline and brewing industries. The Airline Industry In a speech delivered in June 2005, Derek Twigg, the Transport Minister outlined progress on the Aviation White Paper. He recognised issues with capacity, particularly with recent increases in demand for low-cost flights (Twigg 2005). A fifth terminal at Heathrow Airport is being constructed, and additional runways are planned at Stansted and Heathrow. However, there is opposition, focused on noise pollution, fuel pollution, the strain on roads and rail links to airports, and the destruction of countryside to accommodate airport expansion. The government’s pursuit of its policies depends, stated Twigg, on the ability to meet strict environmental standards, and airlines’ increased expansion depends on successful implementation of these policies. Energy Policy The UK government has secured a commitment from airlines to improve fuel efficiency and reduce emissions, but this will require investment from the airlines. The industry must strike a balance, spending on initiatives to become more ‘green’ in return for an infrastructure development policy from the government. Terrorism The 9/11 terrorist attack on the US had immediate consequences, with a drop in demand. This has had particular impact in the US, where a number of airlines have survived only because of Chapter 11 of US bankruptcy laws, which allows continued trading with protection from creditors until profitability is achieved. United Airlines has been operating under Chapter 11 for 3 years. Delta and Northwest are entering Chapter 11, and will probably follow a similar policy to United, focusing on international flights and disposing of smaller planes used for domestic flights (Field 2005). They will therefore continue to compete in the international market with protection: UK airlines would probably be forced out of business if they were to find themselves in a similar position. US anti-terror legislation requires foreign operators to undergo an audit by the Federal Aviation Administration, and to have a Part 129 Licence. Demand for transatlantic charters has been difficult to meet at times, due to many carriers not having the necessary authorisation (Wastnage 2005). Meeting new legislative demands has an economic effect on businesses due to the additional financial and human resources required. Terrorist attacks in holiday resorts are considered by many to be a response to foreign policy, particularly that of the UK and US. Consumer response is to book a holiday in an area considered safe, rather than to forego the holiday altogether, suggesting that airlines carrying holidaymakers should consider a portfolio of varied destinations. The instability of the market due to international politics has encouraged some airlines to carry out work through contractors (for example, Air Atlanta), who will provide aircraft and crew without the demand for the level of commitment required with an airline’s own staff and aircraft investment. The Influence of Europe The UK is required to adhere to European laws which may affect airlines. For example, UK legislation is being broadened to encompass an EC directive on Age Discrimination. From October 2006, one of its effects will be to outlaw forced retirement before age 65 unless it can be justified (www.agepositive.gov.uk). Current practice at British Airways is to retire pilots at 55: as many transfer to other airlines, it would appear unjustified. Salaries are much higher for pilots with long service at BA and the effect of having to keep them rather than employing cheaper new pilots could affect profits. Iraq War The Iraq war has impacted on oil prices. It has been argued that the agenda behind the US/UK decision to go to war was oil-influenced, with the US increasingly reliant on Gulf oil and hence having a particular interest in control of oilfields in the region (Cable 2003). Airlines are particularly sensitive to changes in oil prices due to their large amount of fuel consumption, and all airlines have recently had to choose between reflecting rising fuel costs in ticket prices or accepting reduced profits. Global Change The ‘BRIC’ nations – Brazil, Russia, India and China – are set to become more economically influential in coming decades. China has recently removed the barriers to private airline companies. Domestic flights in China have increased by 20% over a year, which equates to 17,000 extra flights per month (Brown 2005), as planes replace trains as the preferred method of domestic transport. This generates business for aeroplane manufacturers but places additional demands on the world oil supply. It is also part of a larger trend of China engaging more with the global economy, with the consequence of boosting wealth and consumption among its population. The Brewing Industry Environmental Issues Brewing, as with airlines, is affected by green issues. In July 2005, the British Beer and Pub Association reported a continuing fall in the energy used to produce a pint of beer to achieve double the industry’s target, reducing CO2 emissions by 13.9% (www.beerandpub.com, press release 16/2005). Although reducing emissions requires investment, meeting targets qualifies the industry for a rebate on the Climate Change Levy. Changes in Student Funding The student market is important to the brewing industry. Changes to student finances over the last 15 years have seen a switch from non-repayable grants to repayable loans to support study, with tuition fees added to student costs. This has not reduced student spending as might be expected. The average student spends  £7000 per year and 70% of students have part-time jobs (Turner 2005). Debt is accepted as the norm to meet study and living costs, with a wide range of lending sources available. Money for drinking is hence readily available, and Reachstudents, an independent marketing consultancy, claims that 29% of student spending is on entertainment (www.reachstudents.co.uk), including drinking. Extension of Licensing Hours The UK Government has proposed extended licensing hours in England and Wales: however, legislation is being opposed by the Conservatives and LibDems as well as medical bodies and organisations working to reduce alcohol problems. Implementation in November is threatened which could affect permissions granted for Christmas and New Year and reduce takings during the most profitable trading period of the year (Wintour 2005). Smoking Ban Initial plans to implement a smoking ban only in pubs where food is served have been changed in favour of an outright ban on smoking in all pubs (e.g. Carr-Brown 2005). Spirit is the UK’s largest pub chain and owns brands including Chef and Brewer. It suggests a gradual transition to pubs becoming non-smoking, anticipating that an immediate implementation could result in 5000 pub closures and 75,000 job losses across all pub companies. The chain JD Wetherspoon has already begun introducing a complete ban on smoking in a number of its pubs. However, it has recently reported a 4% drop in profits, with an even higher figure of 7% among its non-smoking pubs (Anon 2005). Binge drinking Binge drinking is somewhat double-edged for the brewing industry. On the surface, the increase in drinking to excess would appear to bode well for brewing industry profits. However, drinking large volumes often takes place in conjunction with drinks promotions, where lower prices mean a higher quantity must be consumed to give the same profit. JD Wetherspoon, responding to a recent drop in profits, suggested that the proliferation of binge drinking was keeping many consumers away from town centres and pubs (Anon 2005). Government policy on binge drinking has been criticised for its reluctance to take more extreme measures (e.g Plant 2004): however, there is pressure on the government to take steps to tackle binge drinking and the consequences for the brewing industry are uncertain. Could it open up a more profitable market by creating a more pleasant drinking atmosphere, encouraging more people to drink moderately? Or could the amount drunk in the UK drop significantly, or measures be too little to impact on the current situation? Fuel Prices The brewing industry is affected by the increase in fuel prices caused in part by the Iraq conflict, discussed previously. Transport and distribution costs have been increased by the rise in fuel costs, and consumer spending is also impacted by increased petrol and diesel costs reducing disposable income. While world oil prices affect fuel costs to some extent, a far greater proportion of the cost of a litre of petrol or diesel is the tax – both fuel duty and VAT – which are set by the Chancellor: domestic policy is having more effect than global oil price trends. Conclusion From the above, it can be seen that politics both in the UK and around the world impact on the airline and brewing industries in many different ways. While the industries can have some impact through lobbying the government, or by encouraging public support for industry-friendly policies, a significant proportion of political influences cannot be impacted by the industry, and potential threats and opportunities must therefore be addressed in each organisation’s business strategy. Bibliography Anon (2005) Wetherspoon presses on with no-smoking pubs (Press Association) in The Guardian September 3 2005 Brown C (2005) Air travel recovers to spread its wings above 9/11 clouds in The Scotsman 11 April 2005 Cable V (2003) Saddam’s other weapon of mass destruction: the potential economic fallout from a war in Iraq (from January 2003 lecture) www.lse.ac.uk/collections/globalDimensions/research/vcable.htm Cambridge Marketing College (1999) Marketing Operations (BPP Publishing, UK) Carr-Brown J (2005) Total ban on smoking in pubs and clubs a step nearer in The Sunday Times, 9 October 2005 Diageo plc (2005) Press release 1 September 2005: Preliminary results for the year ended 30 June 2005 at www.diageo.co.uk Field D (2005) Delta and Northwest shelter from creditors in Flight International 20-26 September 2005 (Reed Businss Information, UK) p10 Hall W (2005) British Drinking: A Suitable Case for Treatment? Editorial in The British Medical Journal2005;331:527-528(10September) Meikle J (2005) Pub firm changes tack on smoking ban in The Guardian September 5 2005 Plant M (2004) The alcohol harm reduction strategy for England in British Medical Journal 328 pp905-6 (17th April 2004) Turner S (2005) Drink in the Atmosphere in The Guardian, July 12 2005 Twigg (2005) Speech on UK government aviation policy, 28 June, by Derek Twigg, Transport Minister www.dft.gov.uk/stellent/groups/dft_aviation/documents/page/dft_aviation_038580.hcsp Wastnage J (2005) Brokers split on effects of tighter US security in Flight International 13-19 September 2005 (Reed Businss Information, UK) p35 Wintour P (2005) Minister cites support of police chiefs to head off licensing rebellion in The Guardian October 11 2005 Websites Brewers continue to lead battle on emissions British Beer and Pub Association 28 July 2005 Download Ref: 16/2005 www.beerandpub.com/download.asp?id_Doc=2121 www.agepositive.gov.uk (Government website devoted to Age Discrimination Legislation issues). www.reachstudents.co.uk Student statistics and profile

Conversations inside the Third Culture :: Biology Essays Research Papers

Big Questions: Conversations inside the Third Culture In 1961, C P Snow introduced the idea of the "two cultures", the scientists and the literati, divided by a lack of communication that had been crystallized through academic specialization (1). Thirty years later, John Brockman unveiled the Third Culture as the new face of intellectual life, consisting of scientific thinkers who had ousted the traditional literary scholars in "rendering visible the deeper meanings of our lives, redefining who and what we are" (2). He has been criticized for his fragmented vision of intellectual culture, which affords no place to non-scientists in spite of the apparent inability of science to provide answers to the "big questions" that we ask (3). But are we defining these particular questions in a way that excludes science? If these are issues of truly universal significance, then no single discipline can claim monopoly over their interpretation: answers must draw from broader horizons. The scientific optimism of which Brockman boasts has been approached with much cynicism by humanist scholars. Much discomfort arises not from scientists' claims to general truths about the world, but from the assertion of many scientists that their work stops at the process of discovery: science has nothing to do with how politicians choose to apply their ideas (4). Humphrey (5) points out that it is a great cause of anxiety when those who generate knowledge disclaim all responsibility for how that knowledge is put to use, whether in the form of eugenics in the past, weapons of mass destruction in the present, or even possibly thought control in the future (5). Appleyard recognizes that science aspires to be a value-free pursuit of knowledge, but also that such pursuits are inevitably conducted in a value-laden world (4). If scientists refuse any role in shaping these values, then it is for the humanities and social sciences to help us understand the significance of scientific progress (6), whether it is through the way in which we define life, when confronted by abortion and cloning, or how increasingly closely-integrated communication networks have transformed human relations across the expanse of space and time. In this respect, Brockman's scientifically imperialistic conception of intellectual culture lacks the "questions of subjective, of spiritual and of social values" (3) that must lie at its heart.

The individual, social, economic, legal or political factors

The war in Bosnia and the mines planted in some parts of Bosnia might also have impact on Ado current circumstances. In Bosnia during the war some mines were planted by people when they were running away from the war. This makes people to go only in areas where the mines have been cleared and to keep away from area the areas where the mines are still planted. (wikitravel 2008) This factor might be influencing Ado to move because of the danger associated with The landmines planted in some parts and the war in Bosnia.†¢ The wages given to Ado might also hinder his current circumstances. The wages might be too small to sustain his needs and the needs of his family, so by moving to Brisbane hotel in Australia he might get a better pay than what he is getting now. †¢ Ado might be interested in fulfilling his dream of working for the Brisbane Hotels given that they are one of the biggest five star hotels in the world, so that dream might be a driving force for him to move to Bris bane hotels.†¢ The â€Å"political temperature† in Australia (where Brisbane hotel are located) might be conducive compared to the one of Bosnia, this might also drive Ado to move away from Bosnia, because where the â€Å"political temperature† is cool business do thrive, hence the income of Ado is likely to increase because Brisbane hotel is located where the â€Å"political temperature† is cool, there is that strong belief that they are paying well compared to where Ado was previously working at in Bosnia.†¢ With war come insecurity, Ado might also be affected by the insecurity situation in Bosnia; this might make him to want to move away from Bosnia so that he can go to Brisbane hotels in Australia where the security is serene. †¢ Religion may also be a factor given that in Bosnia population Orthodox are 31%, Roman Catholic 15%, Protestant 4%, Muslim 44% while others are 6%, while in Australia over 70% are Christians, maybe Ado is a Christian a nd he doesn’t enjoying putting up in an area dominated by Muslims. 2.Strategies to use to help save Ado †¢ Ado will be helped in shipping his goods and other household items from Bosnia to Australia. †¢ I will enroll Ado for a cultural orientation program; this will benefit him because it will help him to make adjustment to the Australian culture. This will include habits of eating, eating joint, food eaten, understanding the local currency, his interaction with the other employees, among others. This will make Ado to familiarize himself with the culture and custom for the success of the Brisbane hotel.(Jossy. 1998) †¢ I will help him get a good school for his children. †¢ Ado, his family and his entire house hold will be insured just like other employees of Brisbane hotel, labor laws for foreigners working in Australia will have to be adhered with. †¢ Ado together with his family will be entitled to a return ticket to Bosnia once every year. †¢ I will take him through an orientation within the Brisbane hotel until he is familiar with the hotel operations †¢ I will show Ado some joints where Bosnians do meet.This will make him to be meeting his fellow Bosnians so as to make him not to fill home sick. †¢ I will take Ado for further induction training in management of hotels in Australia given that the way hotels in Bosnia operate might be slightly different from the way they operate Brisbane hotel in Australia. †¢ I will take Ado around the area so that he gets familiarizes him with the places around the hotel, this will make him not to get lost and probably he will fill at home while working for Brisbane hotel in Australia, which is far away from home.†¢ Ado will be entitled to a one month paid leave. †¢ I will also encourage him to enroll in English language classes so that he can know how to speak in English. 3. Productivity will be increased in the following ways: †¢ Given that Ado now knows English he will be communicating efficiently with the other staff, because he will be able to lead his junior efficiently. †¢ Productivity will also be increased because Ado will come with some new idea from restaurants in Bosnia which might not be in Brisbane in Australia.†¢ Productivity will be enhanced because the entire staff will be effective because of lack of communication barrier or cultural ignorance between Ado and the other people working for Brisbane Hotel. †¢ Productivity will also increase because Ado would have known Brisbane hotels environment well so he wont waste time looking up for places. †¢ Productivity will also increase because Ado will not be Home sick as such, because he will be meeting his fellow Bosnians in those places where I would have shown him. Lack of home sickness will make him concentrate fully at work.This will increase his productivity at Brisbane hotel. †¢ Ado will have familiarized himself with the culture and customs of the communities in which the hotel is situated this will make him fill part and parcel of the community, hence psychologically he will have settled. This will make him work efficiently hence increasing the production. †¢ Given that Ado will be given a month paid leave, it will give him the morale to work efficiently this will result in increase in productivity of Braisen Hotel in Australia.†¢ Given that Ado his insured he will have courage to work in odd places in order to keep the production going on efficiently. Reference Balderngen, l. (2002) new complete Executive manners. Gianneto, D. (2002) The Performance grid, Netscape press Himmelweit, S, . Simonetti, R. Trigg, A. , Microeconomics (2001) Cengage learning EMEA Window. C, employee in a new working environment, the journal of philosophy of Employees volume 12 page 21

Crossword Bookstores - a Retail Analysis - 1889 Words

Retail Management: Crossword This report covers branding as personification, differentiation and identification of Crossword as a book store. The report also talks of comparative study with the competition. Submitted by: Aashish Dua 076B Akshata Bhat 006A Apoorva Sharma 011A Ishan Kaul 022A Pulak Narain 042A Shaunak Mukherjee 129B Retail Management 1. Background of the retail stores a. CROSSWORD Crossword, a wholly-owned subsidiary of Shoppers Stop Limited, is the largest bookstore chain in India. Presently,†¦show more content†¦Landmark has always been a very technologically advanced venture, and it had a tie up with Sify way back in the year 2000 for its inventory management. This slowly culminated into OMS, the Order Management System, a centralized inventory management system that keeps track of books available across all stores. This comes in handy when they have to deliver a certain customer’s demand for a book at a short notice. That particular book can be delivered at any Landmark store across the country in a maximum of 7 days. In this and many other ways Landmark has been a pioneer of trends in the industry. ------------------------------------------------- 2. 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