Attaining a Health Care Management Masters Degree 2019

Some aspects of health care management overlap with health care administration, and the terms are often used synonymously. Health care administration involves more direct daily management in health care facilities, such as a head nurse who is responsible for scheduling nurses on a certain floor of the hospital. Health care management would refer to an individual who is in charge of directing an entire health care facility. Health care management and health care administration have only subtle differences, and not every masters or doctorate program will label the course of study in the same fashion. Sometimes health administration will involve policy making decisions, and sometimes health care management will involve that. There is an MBA offered at the University of Phoenix Online that specializes in health care management. This course of study prepares students for administrative decisions related to health care finance, database management, health care infrastructure, and health care organization maintenance. At American InterContinental University, there is an MBA offering that has a health care management focus. There is also a similar program of the same name at Jones International University. They offer accelerated programs with classes lasting eight weeks. At Colorado Technical University, there is a bachelors program in health care management. .u3114f395a31dc151daa4acd6977e8f29 { padding:0px; margin: 0; padding-top:1em!important; padding-bottom:1em!important; width:100%; display: block; font-weight:bold; background-color:#eaeaea; border:0!important; border-left:4px solid #34495E!important; box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); -moz-box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); -o-box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); -webkit-box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); text-decoration:none; } .u3114f395a31dc151daa4acd6977e8f29:active, .u3114f395a31dc151daa4acd6977e8f29:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; text-decoration:none; } .u3114f395a31dc151daa4acd6977e8f29 { transition: background-color 250ms; webkit-transition: background-color 250ms; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; } .u3114f395a31dc151daa4acd6977e8f29 .ctaText { font-weight:bold; color:inherit; text-decoration:none; font-size: 16px; } .u3114f395a31dc151daa4acd6977e8f29 .post Title { color:#000000; text-decoration: underline!important; font-size: 16px; } .u3114f395a31dc151daa4acd6977e8f29:hover .postTitle { text-decoration: underline!important; } READ University of Phoenix Nursing 5 Characteristics That Made Florence Nightingale Into a Nursing LegacyThere are other schools that offer certificate programs and degrees in health care management information. There are increasing numbers of electronic files that need to be protected due to person health information of patients, and that is why such a degree program is needed. Still a number of masters programs in health care management are geared towards public health. Online courses may lead to A Masters in Public Health/Community Health, or an MBA in Health Services. With one of these degrees, an individual might work at the city, country or state level Department of Health. Such individuals might be involved in health care policy-making. There are also PhD programs available is such a field. Communications, information technology, and finance are all a part of the health care industry. Many of these related issues are covered in a course of study towards a masters degree in health care management or health care administration. The goal of the positions attained as a result of one of these degrees is to maintain healthy organizations. .uaf0e8a04e4af439b1064400ae49ad0f1 { padding:0px; margin: 0; padding-top:1em!important; padding-bottom:1em!important; width:100%; display: block; font-weight:bold; background-color:#eaeaea; border:0!important; border-left:4px solid #34495E!important; box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); -moz-box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); -o-box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); -webkit-box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); text-decoration:none; } .uaf0e8a04e4af439b1064400ae49ad0f1:active, .uaf0e8a04e4af439b1064400ae49ad0f1:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; text-decoration:none; } .uaf0e8a04e4af439b1064400ae49ad0f1 { transition: background-color 250ms; webkit-transition: background-color 250ms; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; } .uaf0e8a04e4af439b1064400ae49ad0f1 .ctaText { font-weight:bold; color:inherit; text-decoration:none; font-size: 16px; } .uaf0e8a04e4af439b1064400ae49ad0f1 .post Title { color:#000000; text-decoration: underline!important; font-size: 16px; } .uaf0e8a04e4af439b1064400ae49ad0f1:hover .postTitle { text-decoration: underline!important; } READ Student Health Care Plans for School Nurses Related ArticlesHealth Care Administration CareersGetting Your Health Care Management EducationAdvanced Degrees in Health CareOnline Degrees In Healthcare AdministrationNursing and Health Care DegreesEarning a Masters Degree in Health Administration

Essay about A Fat Tax Economic Costs of Obesity are High

Todays world is full of modern conveniences. Communication is at the touch of a button, you can drive right to the window and get handed a greasy, hot meal, and even walking has become bothersome. Trying to find that spot closest to the door is worth driving around the lot five times. Kids play more in virtual reality than outdoors, and parents who are strapped for time settle on quick, processed meals for dinner. Unfortunately, weve created an environment fit for the lazy. Instead of having to preform physical activities to function throughout the day, we must find time for physical activity, which might not be realistic for everyone. The fast food industry and quick processed dinners feed the consumer with no time for exercise, and the†¦show more content†¦For example, a person could weigh 200 lbs at 5 feet and their BMI would be 39.1, while obesity is a BMI of 30 and above. But what if that person were a short body builder? BMI doesnt take into account the weight of musc le or bone density. Body shape is also of some importance; if someone has 50 extra pounds in their thighs they are at less risk for heart disease than someone with 50 extra pounds in their waist. Visceral fat, or fat located directly around the organs, is linked to many risk factors including insulin resistance. 26 million people in America have diabetes, and 90% - 95% of those are type two. According to the American Diabetes Association, 85.2% of people with type two diabetes are overweight. Economic costs of obesity are increasing and will continue to do so if nothing is done. Healthy Communities for A Healthy Future state that the estimated annual health care costs related to obesity are 190 billion dollars. This is 21% of total health care costs. This includes direct costs, such as preventive and treatment services, while indirect costs include income lost to days debilitated or future income lost to death. On an individual level, an obese person will cost 42% more in health car e than a person of healthy weight. A tax directly related to products known to cause obesity would offset the cost of health care, and hopefully result in less obesity in the Nation. Deciding which foods would be taxed is a difficult process.Show MoreRelatedThe Issue Of Obesity Among The United Kingdom Government1209 Words   |  5 PagesIntroduction Obesity has become an extremely concerning problem seriously needing to be addressed by the United Kingdom government. Some argue that a tax increase on unhealthy food should be implemented by the government in order to increase health levels across the UK, particularly those of children- for whom the current nationwide obesity problem is the most worrying. However, it is not certain whether implementing this tax will be economically viable. By evaluating the repercussions of introducingRead MoreFat Tax on Fast Food in Australia Essay642 Words   |  3 Pagesto the Organisation for Economic Co-operation and Development (OECD), Australia has the fifth-highest obesity rates of any country anywhere in the world, at a very high figure of 24.6 percent. This means that almost one in every four citizens is clinically overweight. A high fat tax on fast food and unhealthy drinks may help slow the world’s rising rates of obesity, as a recent study published in the British Medical Journal suggests. The $2.50 price hike on cigarette tax in 2013 is expected to haveRead MoreThe Effects Of Obesity On American Adults And Children1213 Words   |  5 PagesThe Effects of Obesity Obesity is on the rise in American adults and children. Over 78.6 million Americans are considered obese (CDC, 2014). Health experts believe the obesity crisis has become an epidemic that needs to be controlled. Today many efforts are being made by Federal and state governments and some major companies to combat obesity in adults and children. For example, some major companies are rewarding employees with cash incentives for exercising regularly and maintaining a healthyRead MoreSample Essay1475 Words   |  6 Pagesinclining rates of obesity in countries like France, South Korea, USA, England, Greece and Italy, a decision to produce low-calorie versions of their chocolate bars could be a healthier alternative to the country. There are a number of advantages and disadvantages to Kraft Foods while producing these. Advantages : a) They attract a new and major segment of the market which is more health conscious. This new segment of the market includes people who are on the path to obesity yet desire to consumeRead MoreThe Implementation Of A Fat Tax1158 Words   |  5 Pages The implementation of a â€Å"Fat Tax† is a topic that has been considered before in the UK. This is an additional tax on junk food, seeking to reduce the consumption of products containing high levels of fats, sugars and cholesterol. One of the primary considerations for such a tax is the scale of the obesity problem in the UK. Today’s obesity level in the UK is three times the 1980s level, currently 24.9% and is the highest in Europe (Nhs.uk 2015). The extent of the UK confectionery market size, whichRead MoreObesity : The Consumption Of Unhealthy And Overly Processed Foods1645 Words   |  7 PagesWithin the past 50 years, obesity rates have reached an epidemic level with the United States of America having one of the highest obesity rates in the world. America has become the poster child for obesity worldwide and that has become its most noticeable feature. Several presidents have tried implementing multiple short term solutions in recent years, but none have show n overall effectiveness in reducing the main cause of obesity: the over consumption of unhealthy and overly processed foods. TheRead MoreShould The Government Add Extra Tax On Junk Foods? Essay1315 Words   |  6 PagesShould the Government Add Extra Tax on Junk Foods? The rate of junk and fatty food consumption has grown in the United States compared to the past few decades. Lifestyle reports indicate that one of the primary issues that were altered is the type of diet that people consume. Currently, it seems like many people eat junk foods almost daily. Junk food refers to any diet that has insufficient nutritional value and unhealthy ingredients. The U.S. government should add extra taxes to junk foods to promoteRead MoreEssay on Globesity: Health Crisis/Epidemic930 Words   |  4 PagesAccording to a U.S. Prevalence of Adult Overweight and Obesity study conducted by NHANES from 2009-2010, 68.8% of our population is either obese or overweight. This new health crisis/epidemic has been slowly sneaking up on America in the last decade negatively influencing our society and changing our way of life. It’s hard not to walk down the street and ignore the shining golden arches the gleaming signs of various fast food restaurants and then the wa lk of shame home when you realize your pantsRead MoreObesity And Its Effects On Society1303 Words   |  6 PagesObesity and its Effects on Society ‘America is fat’, this statement repeated by numerous people in and out of healthcare profession and if someone don’t believe this statement, maybe the following statistic will change our mind. According to (CDC) Center for Diseases Control and prevention, obesity rate grew 65% between 1990 and 2002(Su). Still not convince? When most Americans read that statistics they have single question is ‘Why?’ How is the rate of obesity growing so fast? Is this the way weRead MoreENG4U IP EO1142 Words   |  5 Pagesgovernment should impose a high tax on junk food and soft drink. Firstly, junk food and soft drinks are harmful to the human body. Additionally, there will be negative consequences if a high percentage of people are obese in the country with an increased burden on the government due to more and more people get illnesses from purchasing this unhealthy food. Lastly, to promote the healthy living standards for citizens, the government can use the reven ue generated through these high taxes on harmful food

The Challenges of Financial Investment

Question: Explain the challenges of Financial Investment. Answer: The Challenge of Investing Today https://myassignmenthelp.com/mah_cms/uploads/image_2-1490080196.png are Developing diversified portfolio Taking suitable buying and selling decisions: Review and rebalancing of the portfolio Choosing stocks based on long term goals There are different options that are available in the market. The financial products have increased. It is important that suitable buying and selling of the stocks in the portfolio are made based on the different financial products. The specific challenges thatare there in the current stock market that have huge influence and impact on the investor decisions are as follows. The dynamism and uncertainty in the market has increased. In the current scenario the slowdown in the market isnt high enough to match the inflation rate that is prevailing in the market. This is to say that in the times of high inflation the interest rates were also high The complexity and the ambiguity in the financial markets has increased. Further after the financial crisis in 2008 the regulatory framework has made it more difficult to manage the investment as impact of these regulations will have to be considered The investor thus must focus on developing a portfolio that is diversified. Further proper research is conducted on the expected return based on the tools such as CAPM which is one of the most basic tools. Further it is important that portfolio is well diversified so that risk could be managed effectively Investment Information The stock that has been selected to be included in the portfolio, as shown above, is Citigroup. The company operates in the financial services industry. It is one of the oldest and largest financial service providers in USA. This is one of the strengths of the company as being in the industry for such a long time and having significant market share lends stability to the business of the company. Further the financial industry is the backbone of any economy. After the financial crisis there was a downfall in the market. However the stability of the economy is returning and the recovery of the economy is backed by strong financial support which is provided by the financial institutions. The company also has presence across various customers including consumers, corporations, governments, and institutions worldwide. The different services that are offered by Citigroup include traditional banking and commercial banking offering different services which include corporate, institutional, public sector, and high-net-worth clients. This segment provides wholesale banking products and services, including fixed income and equity sales and trading, foreign exchange, prime brokerage, derivative services, equity and fixed income research, corporate lending, investment banking and advisory services, private banking, cash management, trade finance, and securities services. Considering the above discussion it can be said that the stock has been quite stable having tremendous growth opportunities. Overall it is advisable to purchase the stock as it will benefit the portfolio in maintaining steady growth and at the same time reduced risk as Citigroup has significant market share with good business operations to boost the stock price movement. Based on the current economic conditions and the strong business portfolio of Citigroup it may be beneficial for making investment in the stock. Portfolio Construction The table has been prepared showing the portfolio that has been developed based on the following criteria One hundred shares of Citigroup Inc. USAA short term Corporate Bond USA High Income mutual fund One hundred puts of United States Oil Fund (ETF) 6-month certificate of deposit (CD) with the leftovercash Portfolio Citigroup USA High Income Mutual Fund USAA SHORT-TERM BOND United States Oil Fund (ETF) Certificate of Deposit Total Nos. 100 100 100 100 Price $ 51.58 $ 8.45 $ 9.20 $ 17.73 Value $ 5,158.00 $ 845.00 $ 920.00 $ 1,773.00 $ 1,304.00 $ 10,000.00 The target of the above exercise is to develop a diversified portfolio. The portfolio signified above, consists of both high growth stable asset in the form of Citigroup while the corporate bonds that have been selected are aggressive with short term viewpoint. It is important to note that the Citigroup has been considered as a hold stock whereas the certificate of deposits provides stability in the form of low return and risk associated with it. Significant investment i.e. around 10% of the total investment has been made in the CD. Overall the portfolio has the attributes that are required. Risk and Return Based on the article by Tuchman it can be said that the risk and return have direct relationship. This is to say that as the return associated with the particular investment increases the risk associated with such investment would be high. Investment in single security exposes the investors to such risks resulting in making the investment vulnerable. The article highlights three ways in which return in an investment can be maximized by minimizing the risk. It is important to note that the risk associated with an investment is linked to the volatility in the stock price. The three ways that have been suggested reduce such volatility. These have been discussed below Diversification: Investment in a number of portfolios diversifies the risk associated with single security. This is beneficial as with proper balance of securities in the portfolio the return can be maintained whereas the risk associated with the portfolios reduce significantly. Rebalance: In this the balance of the portfolio is maintained by selling or purchase of the stock based on their ability to generate the return. However it is important that significant and frequent changes may not be made to the portfolio as it will result in short selling and the investor will not be able to take the advantage of compounding. Compounding: This refers t reinvestment of the earnings from the returns that have been generated. It is important that this may be considered as the investment made with long term horizon. Investors with short term perspective tend to make loss whereas in the long run the investors tend to gain more. Interpreting Beta The beta of Citigroup is 1.84. The beta signifies the level of risk and volatility associated with the stock. It signifies the level of risk associated with the stock cannot be diversified. The two possible reasons for such high value of beta of Citigroup are as follows Firstly considering the size and the market share of the company it can be said that the company is having huge impact on the economy and as well is impacted by the changes in the economy. This is to say that a small change in the economic conditions will have greater impact on the company as the market share of the company is high. Another important factor that may be there for the high beta value of the company is the international business operations. The presence of the company in a number of international locations exposes it to greater returns and risks. The factors that contribute to the performance of the company may be applicable for various international markets. Thus particular factors may be impacting a company having it operations in USA only to a certain extent but will have greater impact on Citigroup due to its presence in many international markets. Calculating and Analyzing Portfolio Beta The portfolio Beta is calculated by calculating the weight of each of the component of the portfolio. This has been shown in the below table Portfolio Citigroup USA High Income Mutual Fund USAA SHORT-TERM BOND United States Oil Fund (ETF) Certificate of Deposit Beta 1.84 1.1 1.23 1.05 0.5 Weight 0.52 0.08 0.09 0.18 0.13 The beta of the portfolio is 1.41. It is significant that beta has been managed and Economic factors influencing investment decisions There are several economic factors that can impact the performance of the security. These include inflation, interest rate, tax, subsidy, income level etc. The two major factors are the inflation rate and interest rates. In both the cases the investment reduces due to reduced demands of the funds. Another impact of inflation can be seen with respect to the return on the investment that has been made. This is to say that in case the return on the investment is higher than the inflation rate, it would be beneficial. In other cases the inflation rate may be higher than return on the investment that has been made, the return will not be there. Similar is the case with interest rates. In case higher interest rate is provided for the savings, the investment return will not be considered by the investors. At the same time the increase in interest rates will increase the cost associated with the use of funds and thus the demand will be impacted. The investors with fixed income are impacted most by the increase in inflation and interest rates as the earnings are impacted with these factors. Thus both these factors are hindrance to the investors as inflation reduces the earnings whereas interest rates impacts the cost related to borrowings and mortgage interest payments. Overall investment is reduced in case of increase in interest rates due to higher incentive for saving rather than investing. In the present case the investment in certain securities in the portfolio will reduce and at the same time the deposits will increase where the fixed returns are there provided the return is higher than the inflation rate. Market Anomalies There are many theories that attempt to explain stock market behavior. There are certain market anomalies that contradict the efficient market hypothesis. These have been mentioned below Small firms outperform January Effect Low Book Value Neglected Stocks Day of the Week Trading Of the above anomalies January effect is associated with the performance of the stocks in the month of January following the underperformance in the fourth quarter. The reason that is provided for such anomaly is that the investors use the losses made in the investment as a result of underperformance by offsetting capital gains taxes. Excessive selling can put the stock in the range of buyers thereby boosting the demand. Thus overall there is excessive selling pressure before January and after January the buying pressure is there due to favorable price of the securities. Thaler (1987) conducted the study on this anomaly. It was concluded that the average return in the month of January exceeds the average return in other months of the year. This is actually true for many countries that were part of the study. However the relation with the capital gain tax isnt there. For example the capital gain tax isnt applicable in Japan but still the January effect could be noticed there. The study conducted by Tinic and West (1984) highlighted that January effect is more prominent in case of high risk stock and that these stocks have shown higher returns in the month of January in comparison to the other quarters. January effect is certainly one of the most prominent anomalies. Further its is important to note that in the study by Thaler (1987) it has been shown that it isnt only the statistical phenomenon but has been supported by suitable reasoning. Financial Statement Review The financial statement analysis has been performed based on the annual reports for the last two fiscal years of the Citigroup. The three components i.e. profit margin, asset turnover, and leverage have been studied on how these contributed to the change in Return on Assets and Equity of the company. Firstly the three components are assessed individually. The net profit margin of the company which is the ratio of net profit to net sales made by the company has come down significantly. In the year 2013 this was in the range of 29% but reduced significantly in 2014 to 15% only. Considering the return on shareholders funds it can be said that the return has also come down significantly from 6.63% in 2013 to 3.45% in 2014. It is important to note that the return on assets has been significantly low in both the years. Lastly total asset turnover has been considered. In this there has not been significant change Considering the above discussion the various factors that contribute to the performance of the company are profit margin, asset turnover, and leverage. These aspects broadly provide an insight into the performance of the company. The other factors such as cash flow, liquidity and financial costs are indirectly affected by these factors only. Firstly considering the profit margin, it has reduced significantly. Profit margin has direct influence on the net profit margin, return on assets and return on equity. Thus the fall in the net profit of the company has deteriorated the performance of the company. Thus the profit margin has significant impact on the performance of the company. The leverage is another important aspect. It is significant to note that equity employed is quite low in comparison to liabilities of the company which majorly includes the debt. Thus it can be said that the assets that have been developed are majorly contributed by the debt employed by the company. Three important findings that have been discussed above are that there has been huge fall in the net profit margin, the return to shareholders fund has declined but the asset to shareholdings has not witnessed much change. From these aspects it can be said that the net profit margin and sales have been the major factors that have impacted return on assets and the return on equity. This is because net profit margin is driven to a certain extent by the sales and the return on assets and shareholders equity is directly affected by the net profit margin Bond Valuation The interest rate of 5% is used in discounting. The value of Moody's Seasoned AAA Corporate Bond is considered. The long term average for this bond is 7.23%. Certain assumptions have been made in order to calculate the value of bond. This includes the value to maturity and the years to value. The value to maturity is taken as $100 whereas the years to maturity is taken as 5 years. The calculations have been shown in the below table Year 1 2 3 4 Coupon 7.23 7.23 7.23 7.23 PV Value 6.886 6.558 6.246 5.948 Total 103.98984 The current value of the bond is being sold at discounted price as the current yield is lower than the value of the bond. The bond value is taken as the coupon payments that will be made and the value of the bond at maturity. The factors that have an impact on the performance of the bonds are the interest rate and the inflation rate. As the interest rates increase the price of the bonds come down. However apart from this there may be other factors as well. These include credit ratings and inflation. The inflation rate has similar affect as that of the interest rates. On the secondary level exchange rate also has an effect on the bond valuation. This is because as the exchange rate will come down the interest rate will be increased and thus the price of the bonds will come down. Lastly the credit rating means the ability of the company to pay back to the creditors. As the credit rating improves the bond prices increase whereas the fall in rating reduces the bond price. Fixed Income Securities The five type of risks that have been highlighted are interest rate risks, purchasing power risks, Financial Risk, Liquidity Risk and the Call Risk. It is important to note that all the risks do impact the performance and return of investment. However interest rate risk is one of the major factors that has to be considered. Based on this the target should be to mitigate other risks as well. This is to say that interest rate risk will aggravate the effect f other risks as well. For example, the increase in interest rates will reduce the price of bonds thus leading to liquidity risk whereas the decrease in the interest rates will lead to increase in bond prices leading to purchasing power risks. Thus proper balance will have to be made considering the interest rate risk and thus managing the other risks accordingly. It is important to note that the inverse will not be there i.e. liquidity risk or purchasing power risk leading to bond volatility or the interest rate risk. Thus it is important to consider this interest rate risk in the investment being made. Bond Analysis The yield to maturity of the most recently issued US treasury for various maturities has been shown below Based on this the yield curve has been prepared and shown below The above yield curve shows that in the long run the interest rates have increased in comparison to the short run. This is to say that the 3 month, 6 month and one year yield is lower than 5 year, 10 year and 20 year yield. This is done in order to safeguard the interest of the lenders considering the default by the borrowers. In case the yield to maturity comes down, the earning of the investors is lower. This will be shown by lowering of the yield to level below the rate based on based on higher return rate. The other case is that of getting closer to the maturity date. As seen above the yield is lower for the shorter period. Since the chances of default be lower the yield will reduce as the bond gets one year closer to its maturity. Lastly in case the market interest rates increase, the chances of default will increase. The interest of the bonds will increase thereby resulting in higher yield as the risk of default will increase. Using Black-Scholes to Value Options The Black-Scholes model to Value Options is shown below According to the above formula with the call premium being function of strike price, it will be dependent on the strike price. Considering all factors to be constant the call premium can be said to be directly related to the strike price. Thus with the strike price increasing the second part of the formula will increase there by reducing the call premium. In other words high value of strike price the premium will reduce. Future Contract Price Analysis To conduct the analysis for the future contract Gold futures is being considered. The current value of the Gold future is $1217.40. One year ago the future price of Gold futures was $1287.40. Based on the market conditions suppose the future contract was purchased at $1300. The investment that is made is $1,000. Also the loss that is made is of $12.6. Since there will be 100 shares in one lot, the loss will be of $1260. Considering this it can be said that loss will be made. This is because the future price is reducing. The future contract were purchased assuming that the gold price will go up. However it has come down. But since the contract has been made the future contract will be purchased. However if the same is sold in the market it will fetch only $1217.4. This will result in greater loss. But considering the future contract the loss will be of $1000 and $1260 i.e. $2260. It can be said that in near future the price of gold will go up. This is because the fall in gold price might be the result of profit booking. However the timing would be a factor and if one buys the future contract the profitability will be there as the markets will recover from the current position. It can be said that there is extensive fall in the prices and that the gold future market will recover. If futures contract value decreases to $1,217.40 an ounce ($4,540) -106.9% ($1,180) - 100% Portfolio Protection using Options In case of the anticipation that the stock in the portfolio will experience a significant decline within the next three months, different strategies can be potentially used to take advantage of to protect portfolios value. One of the strategies is to sell the call option. This will reduce the loss made on the stock. This will be beneficial as call option can be used even if the stock is not owned. In such a scenario if the stock price is $32 and the stock price falls to $30. In case of 100 shares call option the gain on call option is $100 whereas loss on 100 shares will be $200. Thus the net loss will be $100. In such a way the loss can be reduced. This is also called covered call option. The second option that is available is the short put. In case the trading price of the stock s $42.50. In such a case if the strike price is $40 it can be sold for $2.50. This will credit of $250 for100 shares. Thus in the worst case scenario $4000 will be paid but the advantage of $250 will be there. Thus it will assist in minimizing the loss in case share value comes down. The two strategies that have been discussed above are related to call and put strategies in options. The viewpoint of both the strategies is to minimize the loss that can occur. Mutual Fund Fees There are many factors to consider when selecting mutual funds for a portfolio. One factor is the fees associated with owning the mutual fund. The US High income mutual fund has an expense of 0.98%. Comparing it to the yield and returns i.e. 5.58% and 8.38% respectively it can be said that the expenses are on the higher side. It is important to note that the fee s based on the asset value rather than the returns, So there might be the cases wherein returns are lower and still the fee is paid. In the present case it may not be reasonable to say that the fee is paid as the returns are not high on this mutual fund. If the fee is a very large 2%, one will still going to pay that 2% even if the fund stays flat. If the fund drops 30%, one will still going to be paying 2%. So, in some sense, one never pay for performance investors always pay for assets under management. Thus in the present case it may not be justifiable topay the expense and it may be wise to shift to another mutual fund which is offering high return i.e. performing good or expected to perform good with low expenses due to its low price. Asset Allocation One of the financial service companies has offered to invest in oil related stocks and options. It has been advised that the investment that has to be made in stock to be kept at 50% and in ETF it may be kept to 30%. In this way the investment in the certificate of deposits will not be there. Considering the above option that is given by the financial service company it can be said that it is the high risk portfolio. The rationale behind this investment is that the oil stocks are trading at low prices and this value is bound to increase in future. However it can be said that in the long term it may be more suitable to invest in stocks that are less volatile. The volatility related to oil stocks is higher in comparison to the banking stocks. However to gain returns it may be done that the investment in oil options may be done. In the current scenario all the components of the portfolio are quite stable thus selecting the oil stock for investment in ETF will be quite beneficial. This will increase the overall return of the portfolio. In comparison there will be small increase in the risks. However this return will be higher in comparison to the increase in risk. Evaluation of Portfolio Performance The stock that has been selected to be included in the portfolio, as shown above, is Citigroup. The company operates in the financial services industry. It is one of the oldest and largest financial service providers in USA. This is one of the strengths of the company as being in the industry for such a long time and having significant market share lends stability to the business of the company. Further the financial industry is the backbone of any economy. After the financial crisis there was a downfall in the market. However the stability of the economy is returning and the recovery of the economy is backed by strong financial support which is provided by the financial institutions. The company also has presence across various customers including consumers, corporations, governments, and institutions worldwide. The different services that are offered by Citigroup include traditional banking and commercial banking offering different services which include corporate, institutional, public sector, and high-net-worth clients. This segment provides wholesale banking products and services, including fixed income and equity sales and trading, foreign exchange, prime brokerage, derivative services, equity and fixed income research, corporate lending, investment banking and advisory services, private banking, cash management, trade finance, and securities services. Considering the above discussion it can be said that the stock has been quite stable having tremendous growth opportunities. Overall it is advisable to purchase the stock as it will benefit the portfolio in maintaining steady growth and at the same time reduced risk as Citigroup has significant market share with good business operations to boost the stock price movement. The table has been prepared showing the portfolio that has been developed based on the following criteria One hundred shares of Citigroup Inc. USAA short term Corporate Bond USA High Income mutual fund One hundred puts of United States Oil Fund (ETF) 6-month certificate of deposit (CD) with the leftovercash Portfolio Citigroup USA High Income Mutual Fund USAA SHORT-TERM BOND United States Oil Fund (ETF) Certificate of Deposit Total Nos. 100 100 100 100 Price $ 51.58 $ 8.45 $ 9.20 $ 17.73 Value $ 5,158.00 $ 845.00 $ 920.00 $ 1,773.00 $ 1,304.00 $ 10,000.00 The target of the above exercise is to develop a diversified portfolio. The portfolio signified above, consists of both high growth stable asset in the form of Citigroup while the corporate bonds that have been selected are aggressive with short term viewpoint. It is important to note that the Citigroup has been considered as a hold stock whereas the certificate of deposits provides stability in the form of low return and risk associated with it. Significant investment i.e. around 10% of the total investment has been made in the CD. Overall the portfolio has the attributes that are required. References Thaler, R.H. (1987). Anomalies The January Effect. Economic Perspectives. Volume 1. Number 1. Pp. 197-201. Available At: https://faculty.chicagobooth.edu/richard.thaler/research/pdf/seasonal%20movements%20i.pdf Tinic, S.M. West R.R., (1984). Risk and Return: January and rest of the year. Journal of financial Economics. Volume 13. Pp. 561-574 Graham, J. (n.d.). The Short Put Strategy - Selling Puts to Generate Income. Available At: https://discoveroptions.com/mixed/content/education/articles/shortputstrategy.html Petit, J. (n.d.). Applications in Real Options and Value-based Strategy. Available At: https://people.stern.nyu.edu/adamodar/pdfiles/eqnotes/opt3.pdf Bhattacharya H., (2004), Working Capital Management: Strategies and Techniques Green, R.P. Carroll. J.J. (2000). Investigating Entrepreneurial Opportunities:A Practical Guide for Due Diligence. Sage Publications Reily, F.K., Brown, K.C., Reily, J.R. Brown, P. (2011). Investment Analysis and Portfolio Management. Cengage; 10th edition Swensen, D.F. (2009). Pioneering Portfolio Management: An Unconventional Approach to Institutional Investment. Simon Schuster; Rev Upd edition Malkiel, B.G. Ellis, C.D. (2013). The Elements of Investing: East Lessons for Every Investor. Publisher Collins-Wiley

Theodore Roosevelt And The Rough Riders Essays - Rough Riders

Theodore Roosevelt And The Rough Riders Theodore Roosevelt and the Rough Riders Theodore Roosevelt was not much of a military man but the United States did everything with him that they could. After volunteering for duty, he was sent to help command the First United States Volunteer Calvary. Theodore was then under the command of the regimental commander Colonel Leonard Wood. The rest of the men of the First U.S. Volunteer Calvary were an assortment of all kinds of men. There were cowboys, Indians, prospectors, gamblers, lawmen, and a small enthusiastic group from the east. Most of these men were never in real combat but all of them were very good horsemen. Although not many of the Rough Riders had ever been in real combat, they were blessed with the Krag-Jorgenson .308 caliber carbine rifle. These men were the first to ever use equipment like this in battle. The .308 used smokeless cartridges so that it was harder to be spotted in the thick jungle. This did not give the Rough Riders any advantage though because the Spanish were using smokeless cartridges also. The Rough Riders were not trained greatly before being sent to Cuba to fight. They had a mere three weeks of training before they were sent to Camp Wilcox, Florida for the journey to Cuba. Once the Rough Riders were in battle the lack of training did not show. They fought like true soldiers and were some of the most courageous men that fought in that splendid little war. After Colonel Wood was promoted because of a death to a superior officer, Theodore Roosevelt was put in command of the Rough Riders. He was the one man who started the charge up Kettle and San Juan Hills. Because of these two key positions the Rough Riders had, in a sense, won the war for the United States. That is why they were so significant during this splendid little war. Social Issues

Strategic Marketing of Tim Hortons

Strategic Marketing of Tim Hortons Executive Summary Strategic marketing is a more developed and structured system of marketing, which is concerned with a precise definition of a goal, measure and market analysis. It integrates the options of media and develops a structured system that enables the marketers to capture the market fully. It is aimed at maximum utilization of resources with high out put. Strategic marketing is drawn from a marketing plan.Advertising We will write a custom research paper sample on Strategic Marketing of Tim Hortons specifically for you for only $16.05 $11/page Learn More This shows what programs and policies a company uses and how the implementation is carried out. Generally, its main purpose is to enhance marketing and create maximum customers’ satisfaction. It also encourages market penetration and innovation of application. Some people refer to strategic marketing as mainstream marketing. This is the surest way to operate in the market with limited risk s. Introduction Tim Horton is a fast food organization that has adopted to use a niche penetrating market strategy in its marketing. The company is operating in fast food restaurants in different parts of the United States. Due to its strategic system, the company has expanded its segments to various States, such as Ohio, New York, Michigan and Canada. This follows a new identified niche in the sector. This new product is expected to boost the companies operation since it is the unique product in the entire market. Tim Horton opted for the strategy to stay ahead of competitors like Bucks and Dunkin Donuts organizations. Its major goal is to increase the market segment by sixty percent and capture most of the pioneer markets (Chernev, 2009, p. 49). Roles of Strategic Marketing Strategic marketing gives proper evaluation machinery in terms of product, distribution, promotional activities, pricing and both internal and external organization assessment. Apart from these, strategic marke ting by Tim Horton will help in the analysis of the competitors and act as a reference to the next actions the organization should take (Kotler, 1996, p.72). In any marketing state, whether pioneering or follower, a strategic marketing is vital for the identification of the difference between successful and flat growth of the company. Tim Horton strategy for growth relies on its strategies to enable it achieves the highest result (Hakan, 2004, p.35). In maximizing the market, especially for market penetrators like Tim Horton, identification of market niche becomes a priority. For this to succeed, an organization needs close consultations with the clients to identify the unmet needs.Advertising Looking for research paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More It is through strategic marketing that the organization programs will allow consultation and close supervision of customers to be carried out. S trategic marketing is also important market segmentation and positioning. Unearthing unmet needs and unsatisfied needs in any segment of the market will boost Tim Horton’s growth as well as maintaining customers’ loyalty (Kotler, 1996, p.27). Resource utilization is vital in any organization, means of promotion and advertisement should be strategically designed to achieve the greatest results. In addition, strategic marketing caters for changes in the market, where fast and appropriate adjustments can be made, according to the presented situation. Apart from these, monitoring aspect in strategic marketing gives early indicators thus managers prepare for the changes in the market (Hakan, 2004, p.67). Strategic marketing creates confident and security to the marketers. Managers develop confidence to steer through market challenges. Strategic marketing gives the managers ability to control the company’s destiny since it acts as an organization steering wheel. When Tim Horton adopt strategic marketing so will be its reaction towards the market threats. This will see the company sail through difficult times successfully (Kotler, 1996, p.46). Strategic Marketing Plan Tim Horton has a well developed marketing plan that has seen it gain substantially in the Canadian market. The company has utilized several modes to accomplish this. The company has carried out large promotions and advertisements that have enabled it to get recognition in whole of Canada. This can be seen by constant reflection in the Canadian papers. It has carried out several sponsorship programs in sports and other activities such as the Bier of Canadian curling championship and Ringette Championship in 2005. Around 2007, they introduced Quickpay Tim Card instead of the gift certificates.Advertising We will write a custom research paper sample on Strategic Marketing of Tim Hortons specifically for you for only $16.05 $11/page Learn More The slogan  "it is hard to wrap double† was also added. Other slogans include, â€Å"you have always got time for Tim Horton†, â€Å"Always Fresh Always Tim Horton† and lately in 2011 it is â€Å"it is time for Tims† (Hakan, 2004, p.68). Tim Horton also carry out Roll up the rim to win campaign where several people participates and many prices are won from televisions, radios, cars and cookers. Apart from these, there is community support and Tim Horton children foundation under Ron Joyce for underprivileged children. Finally, Tim Horton has emerged as the Canadian culture and icon. It has represented the lives of Canadian and identity. This follows its plan of rolling out its chains throughout the nation. Tim Horton corporate strategy is aimed at maximizing its growth especially in the USA. This they carry out by focusing on the human resource investment and market capital. By 2009, Tim Horton aim was to set into the USA to provide its quick restaurant services. This was despite the strong competitors and market challenges with companies like Riese Organization and Dunkin’ Donuts. The operation of the company into the new market is aimed at its mission of delivering superior quality products and services for guest and communities through leadership, innovation and partnership and the mission of being quality leader on everything the company does. Horton’s have a well defined marketing strategy which is aimed at giving quality product. It is commitment to providing quality freshest product in its chain. This includes providing coffee, baked foodstuff and beverages which are not older than twenty minutes. Molloy Whelan of TDL Group once claimed, â€Å"You have to stand to your brand. Who Tim Horton innately and is what it stand for is it is ‘always fresh’ proposition.† This is in line with is vision of giving quality products to the customers (Tim Hortons, 2011, p.1). In addition, the company has created a brand loyalty to the customers by the marketing team that meet Canadian taste of cleanliness, neighborly, trustworthy and frugal. TAdvertising Looking for research paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More he company also has strong quality standards for its products that follow their values. Molloy once put it that â€Å" in everything we do we have always focused on the concept of friendly, unpretentious, gently playful, good neighbor you would want to live down the block with you† (Hakan, 2004, p.76). Marketing Models Tim Horton Company has applied two models in its strategic marketing. These are the embedded and historical data model and no measurement and marketing model in developing its strategic marketing (Husting, 2010, p. 124). The Embedded Marketing Model No Measurement, No Marketing Model The two modes have been found to be the simplest to understand and uses in the organization. In addition, they fit the needs of Tim Horton whose aim is to create more market into the USA. It has been seen that the application has been useful in handling the products and meeting customers’ needs (Hakan, 2004, p.78). The models allows the company to gather enough information with the use of no marketing, no measurement model. The company uses these information to evaluate potentiality of the market their size, purchasing power, competitors’ analysis and the available niches. Tim Horton has applied this strategy to open its segments and make decisions regarding implementation of the plans. The data gathered using the embedded marketing model is used in product positioning especially in the new segments and high competitive grounds. The process is continuous to make necessary adjustments in the respective segments (Redpath, 2011, p.4). Marketing Tactics Tim Horton organization has developed different tactics to service in its market despite stiff competition from the pioneers and other followers. The company has a high focus on customers unsatisfied needs. This is carried out through close market monitoring as well as creating brand loyalty (Tim Hortons, 2011, p.3). The company also has greatly focused on customers benefits of close accessibility, product and pricing to cover more market opportunities (Kotler, 2008, p.14). The company’s promotion tactics are aimed at meeting the consumers’ demands on time price and quality. Buying has been made simpler for the consumers since the company carriers out home delivery as well as ambulatory services. Tim Horton’s has created customer loyalty from its close follow-ups to the customers to note their satisfaction and make adjustments accordingly. The tactics applied by Tim Horton’s have met some of its strategies of developing customer’s loyalty as well as widening the market share (Husting, 2010, p.35). Horton Competitive Strategy Tim Horton chosen competitive strategy is niche penetration due to the company unique products have not been applied by the competitors. The quality of its products has also not been met by any of the competitors. In addition, Tim Horton has strong competitive structures and processes to gain the customers loyalty as wel l as wining others. We intend to upgrade our facility and increase customer delivery service so that most of our clients can easily access our products (Kotler, 2008, p.25). The company maintains it competitive advantage analysis through carrying out competitors’ intelligence: Liaise secretly with the employs of the competitors for more information. Using our competitors clients to get the information Sending our loyal customers to the competitors to get the relevant data. Taking observation on their operation system Studying their web site for more information This strategy will enable the organization maintain its market segment through creating customers loyalty. Advancement is also very easy penetration, as it will enjoy the monopoly of its limited and unique products. Through this, Tim Horton will easily meet its goal of market expansion (Husting, 2010, p.46). Objectives To meet its goals successfully, Tim Horton has set objectives that drive its workers as well as its operations. The objectively are clearly stated to help all their stakeholders understand the working procedures (Canadian Press, 2009, p.1). The following are some of the objectives formed by the company in 2010: To create 600 stores in Canada and 300 in USA To creates expansions in Universities, Hospitals and Airports. To create more co-brands in USA chain especial in ice cream. To test new bakes in the USA in at least ten stores. The company has developed the objectives based on their achievability, measurability and specificity. The company has drawn an action plan based on objectives specifying the priorities given to each marketing expert, who is working on them and specific end term goals. To achieve the goals there are follow up mechanisms for the products and the activities. Growth Opportunities To identify the growth opportunities, our organization took a consideration of product, price, place, promotion, people, physical evidences, and process. We identified the market niches in the areas. This was easy since the company is a follower organization so analysis could be based on the pioneer’s mistakes as well as uncovered areas. It has a well-developed ambulance and other transport system (Rodgers, 2003, p.56). In addition, the company has advantage of financial resources that enables it to carry out advertisements to its products through the media and publication to reach as many customers as possible. Due to the financial opportunity, the company will be able to acquire the best-trained personnel and provide incentives to our loyal customers. We also have the best structures with well-equipped facility (European International, 1998, p.27). In addition, we have proper policies to run our processes effectively for perfect outcome. Our policies are structures that limit bureaucratic measures, which might cause delays during service provision. These were identified after a SWOT analysis in the organization (Rodgers, 2003, p.59). Internal Streng th Tim Horton has many internal strengths that will enable it operate successfully in this market. With the application of SWOT analysis the company has market strengths in the following areas; it has a strong financial back up that will enable it develop market purchasing power and enjoy the economies of scale (Rodgers, 2003,p.121). With well-trained personnel, the organization will enjoy efficient management and produce quality unique products in the market. The values and organization culture form a great strength of this company penetration into the market. Finally, being the first company to develop fast food restaurants in some areas, it expects to enjoy a large market in the future (Husting, 2010, p.54). External Environmental Factors As a follower marketer operating in unique products from the pioneers in new areas, there are several challenges in the market. Tim Horton will need a lot of finances to promote and win its customers from the pioneers who have developed customer s’ loyalty (Rodgers, 2003, p.58). Apart from this, the company has to fight restrictive legal measures in the monopolized market by the pioneers. Pulling perfect labour is also a challenge since the health organizations in the field are huge companies with better incentives. Breaking market barriers by the pioneers as well as staying ahead of the competitors is one of the challenges this company is facing (Kotler, 2008, p.26). Response to Emerging Themes In this follower strategy with niche marketing style, Tim Horton strategic measures challenge such as changes in consumer tastes, competition system and economic dynamics (Redpath, 2011, p.2). The company is undertaking a lot of research to identify marketing trends that will keep it more dynamic to respond to the challenges (European International, 1998, p.67). The management body has well trained personnel who carry out proper monitoring and environmental scanning. In addition, there are contraction and expansion strategies of the organization, depending on prevailing economic situations (Husting, 2010, p.47). Recommendation Niche marketing and expansion for followers is not always easy for companies to execute, for organizations like Tim Horton need proper machinery for evaluating their decisions as well as advancing. This calls for unending research in the market needs as well as emerging trends. It is also recommended that the company should recruit experts who carry out close supervision on the customers needs for identification of consumer satisfaction. This is the only sure way of gaining customers’ loyalty as well as expanding market segments. Conclusion Marketing today involves a lot of challenges due to the advancement in technology as well as ever changing economic system. Due to this, many companies like Tim Horton have developed strategic marketing measure to keep them survive in the market. Strategic marketing approach analysis of the market structures, processes and outcomes allow operators to work in a non-blanketed field. Strategic marketing draws modes of approaching the goals through informed choices and customer oriented marketing. Through this, marketing organizations can strategically plan how to meet the marketing challenges. References Canadian Press (2009). Tim Hortons to co-brand six stores in Ontario with Cold Stone Creamery. Web. Chernev, A., 2009. Strategic Marketing Management. Web. European International Business, 1998. International Business Review: The Official journal of the European International Business Academy. Web. Hakan, H., Harrison, D., 2004. Rethinking Marketing: Developing a New Understanding of Markets. Web. Husting, H., Saperstings, H., 2007. Improve Your Marketing to Grow Your Business: Insights and Innovations that Drive Business and Brand Growth. Web. Kotler, P., 2008. Social Marketing for Public Health. Web. Redpath, T. (2010). Roll-up-the-rim-to-win-sweet-profits-at-Tim-Hortons. Web. Rogers, E., 2003. Diffusion of Innova tion. Web. Tim Hortons Inc. (2011). In our Restaurant. Web.

Pros and Cons of Airline Deregulation Essay Example

Pros and Cons of Airline Deregulation Essay Example Pros and Cons of Airline Deregulation Paper Pros and Cons of Airline Deregulation Paper Essay Topic: Pros and Cons Deregulation has brought charges that safety has been reduced in the transportation industries. Although theory suggests that safety might be lower in a competitive market than in a regulated one, experimental evidence shows that safety has not declined since the transportation industries were deregulated but has actually continued to improve. Even though deregulation and partial deregulation have brought great benefits to the economy and to the consumer, some interests have been adversely affected. In the airline industry, organized labor has been the principal loser. To this day, the major airlines are attempting to bring down their inflated labor costs. A number of airlines have established dual pay schemes where new employees are paid less. The deregulation process received a great boost in 1977 when President Jimmy Carter appointed Alfred Kahn to chair the CAB. This quintessential policy entrepreneur took charge at the perfect time. With a powerful intellect, a dedication to microeconomic efficiency, and a quick and infectious humor, Kahn set about reorganizing the CAB. Under Kahn, the board decided several landmark cases that tested open entry and unrestricted price competition (Civil Aeronautic Board 1978). The policy options, now, were narrowing. Early in 1978, both houses of Congress passed bills to liberalize regulation. Airline executives, such as American’s Crandall, faced with the prospect of a policy â€Å"that would leave the airlines half free and half fettered,† now shifted gears and called for the total elimination of economic regulation. In October, 1978, Congress passed the Airline Deregulation Act. President Carter signed it ten days later. The act then place maximum reliance on competitive market forces. The Civil Aeronautics Board would automatically certify entry, unless doing so damaged the public interest. Fares would be flexible within a wide zone of reasonableness, and mergers would be readily approved. If all went well, the Civil Aeronautics Board would cease to exist by 1985 (Crandall 1978). The first year of airline deregulation was one of the most difficult years of the history, commented Bob Crandall. As an industry, Airline Company seemed bent on giving away the store. And 1980 proved worse still. All but two of the major carriers lost money, with American Airlines’ first half losses the worst in the industry. Passenger traffic slumped because of the recession, and the price of jet fuel had doubled again. Intense competition for key routes, with wild fares discounting, caught the industry and its regulators by surprise. The major carriers were not at all prepared for the suddenness of competition. Although the deregulation act had proposed an orderly phase-out of regulation, reallocation of routes and fare competition swept past the board’s half-hearted attempts at stabilization. By the spring of 1980, carriers were virtually free to determine the routes they served and the prices they charged (Office of Economic Analysis 1982). In May, 1979, World Airways, a former charter, offered a one-way fare of $108 between New York and Los Angeles and New York and San Francisco. This touched off the â€Å"transcontinental wars† among the major carriers, under-cutting revenues of more than $750 million, just for those two routes. TWA expanded the war to the semi-transcontinental market, matched by all of the other majors. Pricing madness went from bad to worse when Eastern tried to enter, with an unrestricted transcontinental fare of $99. World went to $88, the others matched, and the price war spread to â€Å"peripheral transcontinental markets of Boston, Washington, and Philadelphia (Praskell 1981). Hastily, the majors began dropping unprofitable routes and entering the potentially profitable markets of their competitors. Braniff challenged American in the Southwest, while Delta attacked American’s hub at Dallas from the East. Eastern expanded out of LaGuardia toward the west, and United contested more of the major city-pair markets connected to its hub in Chicago. Such unrestricted competition forced a dilution of yields, pushing break-even load factors higher. Accelerated hubbing was the clearest short-term strategic response by the major carriers. This practice, of concentrating connecting flights at a particular airport, had been Intense competition for key routes, with wild fares discounting, caught the industry and its regulators by surprise. The major carriers were not at all prepared for the abruptness of competition. Although the deregulation act had proposed an orderly phase-out of regulation, reallocation of routes and fare competition swept past the board’s half-hearted attempts at stabilization. By the spring of 1980, carriers were virtually free to determine the routes they served and the prices they charged (Office of Economic Analysis 1982). Used to a limited extent since the 1960s, both Delta and Eastern had developed a significant hub at Atlanta; United at Chicago; American at Dallas, and Allegheny (now US Air) at Pittsburgh. But hitherto, regulation had severely constrained the use of the hub-and-spoke route structure as an operating strategy. Only after receiving route flexibility could the majors contemplate the potential economies of scale and scope that the hub-and-spoke system had to offer. In terms of strategy, organizational structure, and performance, American Airlines’ adjustments to deregulation, starting as the second-largest, but least efficient of incumbent domestic carriers, was the most thoroughgoing and successful. As such, it provides the sharpest contrasts for examining the effects of regulatory change on business practice. Conversely, its size and revealed market power show how effective strategy, like regulation, can shape market structure to create sustainable rents. American Airlines was not prepared for deregulation. Its break-even load factor was the industry’s highest. Its labor costs were higher than the industry average and its productivity growth lower. Its fleet was the least fuel efficient, and its route structure the industry’s most fragmented. During the period in which regulation broke down (1968-1974), American’s management had made several serious errors: overexpansion into hotel properties, acquisition of too many wide-bodied aircraft, cutbacks in the development of computerized reservation systems, a failed merger attempt, and, finally, a managerial crisis. In September, 1973, George Spater, American’s chairman, admitted to making an illegal contribution to the Nixon campaign. He resigned, leaving American with operating losses, major organizational problems, and ruined morale (Serling 1985). C. R.  Smith, American’s colorful chief executive from 1934 to 1968, came out of retirement just long enough to choose a new chairman – an outsider named Albert Casey, president of the Times Mirror Company. Casey, a rough-and-tumble Boston Irishman with a self-deprecating sense of humor, specialized in finance, liked a lot of people, but knew nothing about airlines. His immediate challenge was to restore confidence and eventually, to prepare the organization for the demands of deregulation. The effects of deregulation on market structure and performance were just as dramatic as on industry structure, but not quite so clear. Several exogenous events, including the second oil shock, the air traffic controllers (PATCO) strike in 1981, and the 1982-1983 recession, also shaped the patterns of adjustment. With this qualification in mind, we can observe significant changes in the following market characteristics: first, entry and exit conditions, second, price level and pricing mechanisms, third, segmentation, fourth, distribution channels, fifth, cost structure, sixth operations, seventh, demand eight, service levels (and safety), and nineth, industry profitability. Entry into the industry and into individual city-pair markets clearly opened up as soon as the CAB lowered its barriers. Relatively low minimum-efficient scale and capital costs made this possible, but few of these entrants survived to 1988. Despite the hopes of economists, particularly those associated with contestability theory, the airline industry did not turn out to be frictionless (Panzar and Willig 1982). By building economies of scale and scope, by segmenting markets with strategic pricing, and by developing control of distribution channels, the incumbent firms responded strategically to create competitive advantages and eventually foreclose entry. As the data came in, economists revised their views of the industry’s contestability. At best, it appeared to be a transitional condition. Deregulation prompted an immediate reduction of prices and a continuing fragmentation of pricing structure. Here too, the early pricing responses seemed to support the logic of contestability. Even monopolists lowered their fares. Eventually though, prices stabilized in the least competitive markets and then increased. Price structure, meanwhile, fragmented into a wide range of special packages, discounts, and incentive deals. By 1987, the proportion of passengers using some sort of discount fare had risen from 37 percent (1977) to 91 percent (Airline Deregulation 1988). Sophisticated customer and competitor analyses, drawing on computerized data bases, was performed daily to optimize revenue by adjusting schedules, fares, and seat allocations among discount categories. This development should not have been surprising, in view of airline economics and a history of similar, although constrained, pricing practices. Commodity like, price wars at the outset of deregulation were partly the result of the market’s desegmentation. Carriers only gradually implemented strategies to resegment the market by price, service, brand image, and loyalty. Among the most striking features of airlines deregulation was the development and newfound strategic importance of distribution channels (methods of selling tickets). Under regulation, distribution channels were unimportant and unsophisticated. But with the transition to competition, customer access and control suddenly became critical for sellers, while the fluidity of adjusting markets caused extreme informational problems for buyers. Computerized reservation systems, with a relatively small incremental cost of adding a travel agency and huge economies of scale and scope, quickly became a competitive bottleneck that first movers took a tremendous advantage of. By 1988, American (SABRE) and United (APOLLO) controlled 70 percent of the travel agency channel, leaving competing systems (TWA, Delta and Eastern) with too small a base and other carriers in abject dependency. Accordingly, Frontier and ten other carriers brought a civil antitrust suit, seeking damages and divestiture of SABRE and APOLLO. The case was based on the essential facility doctrine – the same concept that the government had used successfully to attack the Bell System. Although civil charges were dismissed late in 1988, the Department of Transportation continued to review proposals for divesting the airlines of their reservation systems. Cost reduction was a predictable result of deregulation. The most dramatic and politicized aspect of this process was the deco sting of labor. Elimination of work rules, increases in hard hours for flight crews, and wage givebacks all contributed to lower costs. Continental, by reducing labor costs to 1. 33 cents per available seat mile, set a competitive baseline for the others. Delta, even with its traditionally nonunion work force, remained at the high end with costs of 3. 54 cents per average seat mile. Like American, every major carrier eventually moved to reduce costs across the entire range of operations, fuel, overhead, fleet and route structure, as well as labor. In all, the cost per passenger-mile traveled declined by about 30 percent 1981 and 1987. On the other hand, since November 1974 airfare increases have outpaced the rate of inflation, President Jimmy Carter (D, 1977-1981) shared Senator Kennedy’s views on this issue. In 1975, he endorsed legislation to provide airlines with greater flexibility to reduce airfares, ease Civil Aeronautics Board’s regulations on trunk entry, and made it easier, with some protections for small communities for airlines to eliminate nonprofit able routes. The airline industry strongly opposed the relaxation or elimination of national government rules concerning entry and exit of air routes and passenger ticket prices. During congressional hearings, they testified that head to head competition might cause ticket prices to fall, but it would also bankrupt many smaller airlines, leading to the concentration of airline service into just a few large carriers that could conceivably, control the marketplace and impose even higher fares on passengers than before deregulation took place. For example, Robert Six, chairman of the board and chief executive officer of Continental Airlines, Inc. estified before the U. S senate Commerce Committee that deregulation will not lead to a more competitive situation. Rather, it is liable to result in a period of initial chaos and ultimately in a situation in which most of the air transportation system will be in the control of a few industry giants. The aviation industry also argued that deregulation would cause service reductions and in some instances complete elimination of service along many less profitable air routes, particularly those serving rural states and small-population cities. They also worried that deregulation would frighten investors making it more difficult for them to finance badly needed equipment facilities. They also warned that deregulation would adversely affect air safety because price competition would force airlines to defer maintenance and keep airplanes in service as long as possible. The industry’s labor unions also opposed deregulation. They feared that increased price competition might make it more difficult for them to win wage and salary concessions at the bargaining table. While Congress debated deregulation’s pros and cons, Alfred Kahn, President Carter’s choice to head the Civil Aeronautics Board, was sworn into office on June 10, 1977. He systematically altered the Civil Aeronautics Board’s regulatory behavior to allow airlines to fly as many routes as possible and at the lowest fares that they could afford. As airfares fell across the nation, Kahn received extensive and very positive media coverage. Although Congress was probably going to deregulate airlines regardless of Khan’s actions, the favorable publicity concerning Khan’s effort signaled to many on Capitol Hill hat it would be political suicide to fight airline deregulation. Sensing an opportunity to destroy its new competition, the larger airlines systematically reduced passenger airfares on routes also flown by the new start-ups. The practice was called predator pricing. The idea was to outlast the new start-ups and later recoup losses by raising passenger airfares after the start-ups were driven out of business. The strategy worked for Northwest Airlines. Its discount pricing forced People Express to abandon its Newark to the Twin Cities route. Northwest Airlines’ hub was at the Twin Cities Airport. However, in most instances, predator pricing resulted in economic losses for all airlines. Eastern Airlines, for example, lost to much money trying to kill off World Airline coast-to-cost routes that it was forced to withdraw from transcontinental service altogether. Also, United Airlines nearly went bankrupt trying to kill off People’s Express. By the late 1980s, predator pricing and other factors forced many start-ups into bankruptcy and many others to merge with other airlines. Overall, deregulation increased the number of air carriers but American, Delta, and United continued their dominance over the U. S market. Deregulation changed the basic nature of air service in the United States. Before deregulation most airlines exchanged passengers freely at major airports, a practice called interlining. After deregulation, airlines tried to keep their passengers to themselves. They discovered that it was more profitable to provide nonstop passenger air service between several major hubs instead of offering point to point, nonstop air service to numerous communities across the nation. Conclusion The airline industry appears to be evolving towards the segmented structure that existed prior to deregulation a small number of large trunk carriers offering long haul domestic and international services, regional carriers offering short and medium haul services within geographic areas and commuter carriers offering very short haul services to small communities. In aviation’s formative years, this structure was developed and controlled by government regulators. However, today’s evolution toward the segment marketplace is being driven and controlled by market forces with low entry barriers. Regulation has been a long-standing and indeed necessary feature of the airport transport industry the world over. Many countries, however, are now questioning the effectiveness, and indeed the relevance, of such regulations. More generally, questions are being asked about the appropriate balance between public and private sectors in the industry, whether existing regulations and operating structures are compatible with the introduction of new technology and more intense international competition, and many nations have sought to evaluate more systematically the overall contribution, an costs, of their ports to both domestic economic growth and inter-modal transport systems. In short, the world’s ports have reached a critical historical juncture. To date, however, airport reform in many countries has simply equated with labour reform, or more precisely a derogation of employment and working conditions. The propriety of such reform programmed must be questioned and, on the basis of the evidence presented in this paper. In developing countries in particular, where social protection for redundant workers is often more notable by its absence, the adverse effects of deregulation are indefensible. Furthermore, the experience of many countries suggests that deregulation by no means guarantees any improvement in airport performance. In fact, the long-term result may be the opposite. In contrast, there are several countries/ports where significant improvements in airport performance have been achieved while basic standards of employment have been at least maintained, if not improved. Thus, in several cases, productive efficiency continues to be founded on equity and efficiency in the labour market.

Multiversity Essay Example | Topics and Well Written Essays - 1250 words - 1

Multiversity - Essay Example ty thus resulted in the incorporation of different communities within a single setting thus; developing holistic individuals with a propensity to interact ad integrate ideas. Clark Kerr in his article the idea of a multiversity investigates the history of the idea and its ramification to the contemporary world and the academic environments. The brainchildren of the idea had a number of specific convenience issue that they sought to address by developing the idea. The historical evolution of higher education through the subsequent introduction of the idea of a multiversity was progressive and a result of several structural and management changes in the governance of the facilities of higher education as the discussion below reveals. Kerr begins his article by investigating the origin of universities as institutions of higher learning. The earliest universities such as Oxford, Bologna, and Edinburg had specific structures that necessitate the management of the single institutions that specialized in single courses offered in single campuses. The administrative structures of the facilities necessitated the management of the facilities as single entities with each university at the time specializing is single disciplines. However, with time and the resultant changes in the social environment, the society became more liberal with the demand for education increasing in the western world among other regions globally. Such leading and prestigious institutions therefore led the change into more liberal and diversified learning institutions thereby permitting the inclusion of more courses and campuses leading to the development of the multiversity concept â€Å" it was clear that by 1930 that universities have changed profoundly and commonly in the direction of social evolution of which they are part† Kerr 3. In this statement, Kerr acknowledges that institutions of higher learning such as universities existed as part of the society and therefore had to represent the social