Culture and Conflict Essay - 1217 Words

The possibility of the clash of civilizations, as seen by a quick glimpse of history, makes it evident that conflict is nearly inevitable. There are 5 key aspects that bring about problems in any given scenario. Historically, a niche is formed from a group of individuals with similar ways of life; through time the niche gains resources and adopts a religion or lack thereof. With these characteristics attributed to a group of people they are either viewed as friends or foes to neighboring communities, creating alliances. When a minor conflict arises with one community, because of alliances you have major conflict which has the possibility to tear individual communities apart. Samuel P. Huntington describes exactly the same theory covered†¦show more content†¦This can simply be put as, â€Å"take a walk in their shoes.† When you begin to take this walk you immerse yourself in their culture, in their ways of life, in their suffering. All of these different aspects come together and you realize the motivations that are present in other areas apart from your own. In the episode of Darmok, the culturally relevant episode of Star Trek: The Next Generation, the crew of the Enterprise had to immerse themselves into the strangely foreign world of the Tamarians’ lives to begin to understand them. Even technology was unable to bridge the gap between the two species and intuition ruled out over all the search algorithms and speech recognition technology could provide. Many people, to get this immersion, will travel abroad and use their time helping others while getting the experience of living someone else’s life. You become accustomed to your way of life you see others as â€Å"uncultured† and this experience changes that way of thinking. A transformation begins and an understanding develops. Becoming educated about or experiencing even one other cultural group can open up a world in which you see the differences that we all share and begin to realize that we aren’t all that much different. Much of the problem however can lie in the internal conflict brought up in groups that behave in much the same way. A perfect example is the conflicts in the Middle East or evenShow MoreRelatedCulture And Conflict In The Organizational Culture Of Uber1276 Words   |  6 PagesCulture is the collective attitude, intellect, and atmosphere that a community creates for itself. This includes values, traditions, and social norms. Specifically, organizational culture is within a community, group, or business that shares values, follows a code of conduct and standards, and holds its members accountable for their contributions. Organizational culture arises from the goals and mission set out by the company. 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While differences are good in some cases, these differences, particularly with respect to conflict (in general) can exacerbate the conflict or redirect it such that the conflict does not get resolvedRead MoreA Conflict Of Cultures : Kerry Beck1610 Words   |  7 Pages A Conflict of Cultures Kerry Beck Charleston Southern University All material in this paper is the author’s original work and all resources have been properly cited.  Outline The Mothers of Good Will are a religious order that operates two hospitals which have recently been merged The two facilities have developed very different cultures over time and are having difficulty integrating as a result Hospital ‘A’ was, until recently, an acute care facility Its culture was more fluid and openRead MoreThe Theory Of Culture : A Conflict View1946 Words   |  8 PagesThe identities that each person possesses is influenced according to their attitudes, values and beliefs embedded in their culture. 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By reading two distinct focuses of the afterRead MoreThe Constant Conflict Between Chinese Culture And American Culture1544 Words   |  7 PagesThe Constant Conflict between the Chinese Culture and American Culture Cities, towns, and, more generally, places, are living organisms. Similar to those living within and outside it, a city interacts with other living beings, creating change and taking change. The symbiosis between the places and those within the place can be mutualistic or parasitic, beneficial to both or harmful to one. The early 1900s were characterized by millions of people flocking to America to live the so-called AmericanRead MoreThe Effects Of Taking Conflict On Conflict Management Styles Across Cultures911 Words   |  4 PagesTaking Conflict Personally Conflict, according to Dictionary.com, means to come into collision or disagreement; be contradictory, at variance, or in opposition; clash (Conflict Definition, n.d.). There are so many different things that impact each individual on conflict, such as our beliefs, how we were raised, attitude, and life experiences that it is really easy to see how conflict arises. After reading the Peer Reviewed Journal â€Å"Effects of taking conflict personally on conflict management stylesRead MoreThe Conflict Between Modern And Traditional Culture1211 Words   |  5 PagesThe conflict between modern and traditional culture continues to have a significant impact on people with strong cultural beliefs. In â€Å"Dead Men’s Path†, Chinua Achebe uses literary elements of setting, symbolism, conflict and irony to analyze the theme of cultural conflict between people with modern values and traditional culture. To set the background, Achebe begins the story with a twenty-six years old young man being elected as a principal of a rural school located in a village in Nigeria during

Becks Hybrids As A Regional Family Owned Seed - 1137 Words

Beck’s Hybrids Beck’s Hybrids is a regional family owned seed corn company that serves farmers in Indiana, Illinois, Ohio, Southern Michigan, Western Kentucky, Iowa, Tennessee and Eastern Missouri. The main headquarters is located in Atlanta, Indiana. Beck’s has been in business for over 78 years. The business started in 1937 with just family planting and harvesting the crops. At the time, Mr. Beck didn’t realize this launch was going to be a huge success for the second and third generations of the Beck family. Over time, the company expanded to the owner, his wife and a few farm employees. Beck’s Hybrids has become the largest family owned seed corn business in the United States by recruiting and selecting talented people. In 1990, there were 15 full time employees and six of them were Beck family members. By 2006, there were 80 full time employees. Today, there are over 500 full time employees. In the summer that number grows to over 700, that includes intern s and summer help. Beck’s Hybrids has become the number one family owned seeds corn company in the United States by hiring qualified people. Since 1990, their corn and soybean sales have increased 20% each year. I am going to identify the critical success factors that have made Beck’s Hybrids successful. People Attitudes and Actions Beck’s Hybrids is committed to the mission and attitudes and actions of their employees. People with the wrong attitude are tough to manage; they consume tremendous amounts ofShow MoreRelatedBeck s Hybrids As A Regional Family Owned Seed953 Words   |  4 PagesBeck’s Hybrids is a regional family owned seed corn company that serves farmers in Indiana, Illinois, Ohio, Southern Michigan, Kentucky, Iowa, Tennessee and Missouri. The main headquarters is located in Atlanta, Indiana. Beck’s has been in business for over 78 years. The business started in 1937 with just the family planting and harvesting the first six acre crop. At the time, Mr. Beck didn’t realize this launch was going to be a huge success for the second and third generations of the Beck familyRead MoreThe Best Talent Will Ensure Future Success1936 Words   |  8 PagesHaving the right team at Beck’s Hybrids has led them to recruiting and selecting the right people. Beck’s Hybrids is a regional family owned seed corn company. The main headquarters is located in Atlanta, Indiana. Beck’s has been in business for over 78 years. The business started in 1937 with just family planting and harvesting the crops. At the time, Mr. Beck didn’t realize this launch was going to be a huge success for the second and third generations of the Beck family. Over time, the company

Benito Juarez Free Essays

Juarez was born in the village of San Pablo Guelatao, Oaxaca on March 21, 1807, located in the mountain range now known as the â€Å"Sierra Juarez†. His parents, Marcelino Juarez and Brigida Garcia, were peasants who both died when he was three years old. Shortly after, his grandparents died as well, in which his uncle then raised him. We will write a custom essay sample on Benito Juarez or any similar topic only for you Order Now [2][3] He described his parents as â€Å"indios de la raza primitiva del pais,† that is, â€Å"Indians of the original race of the country. â€Å"[3] He worked in the corn fields and as a shepherd until the age of 12, when he walked to the city of Oaxaca to attend school. 1] At the time, he was illiterate and could not speak Spanish, only Zapotec. In the city, where his sister worked as a cook, he took a job as a domestic servant for Antonio Maza. [1] A lay Franciscan, Antonio Salanueva, was impressed with young Benito’s intelligence and thirst for learning, and arranged for his placement at the city’s seminary. He studied there but decided to pursue law rather than the priesthood. He graduated from the seminary in 1827 and went on to gain a degree in law. In 1843 Benito married Margarita Maza.Benito Juarez with his sister Nela (left) and his wife Margarita (right), 1843 [edit]Political career Juarez became a lawyer in 1834 and a judge in 1841. [4] He was governor of the state of Oaxaca from 1847 to 1852; in 1853, he went into exile because of his objections to the corrupt military dictatorship of Antonio Lopez de Santa Anna. [5] He spent his exile in New Orleans, Louisiana, working in a cigar factory. [6] In 1854 he helped draft the Plan of Ayutla as the basis for a liberal revolution in Mexico. [5] Faced with growing opposition, Santa Anna resigned in 1855 and Juarez returned to Mexico.The winning party, the liberales (liberals) formed a provisional government under General Juan Alvarez, inaugurating the period known as La Reforma. The Reform laws sponsored by the puro (pure) wing of the Liberal Party curtailed the power of the Catholic Church and the military, while trying to create a modern civil society and capitalist economy based on the U. S. model. The Ley Juarez (Juarez’s Law) of 1855, for example, abolished special clerical and military privileges, and declared all citizens equal before the law. All the efforts ended on the promulgation of the new federalist constitution.Juarez became Chief Justice, under moderado (moderate) president Ignacio Comonfort. The conservatives led by General Felix Zuloaga, with the backing of the military and the clergy, launched a revolt under the Plan of Tacubaya on December 17, 1857. Comonfort did not want to start a bloody civil war, so made an auto-coup d’etat, dissolved the congress and appointed a new cabinet, in which the conservative party would have some influence, assuming in real terms the Tacubaya plan. Juarez, Ignacio Olvera, and many other deputies and ministers were arrested. The rebels wanted the constitution revoked completely and another all-conservative government formed, so they launched another revolt on January 11, 1858, proclaiming Zuloaga as president. Comonfort re-established the congress, freeing all the prisoners and resigned as president. Under the new constitution, the chief justice immediately became interim president until proper elections could be made. Juarez took office in late January 1858. Juarez then led the liberal side in the Mexican War of the Reform, first from Queretaro and later from Veracruz.In 1859, Juarez took the radical step of declaring the confiscation of church properties. In spite of the conservatives’ initial military advantage, the liberals drew on support of regionalist forces. They had U. S. help under some terms of the controversial and never approved McLane-Ocampo treaty. This turned the tide in 1860; the liberals recaptured Mexico City in January 1861. Juarez was finally properly elected president in March for another four-year term, under the Constitution of 1857. Bust of Benito Juarez in Guanajuato, Mexico.Faced with bankruptcy and a war-savaged economy, Juarez declared a moratorium on foreign debt payments. Spain, Great Britain, and France reacted with a joint seizure of the Veracruz customs house in December 1861. Spain and Britain soon withdrew after realizing that the French Emperor Napoleon III used the episode as a pretext to launch the French intervention in Mexico in 1862, with plans to establish a conservative regime. The Mexicans won an initial victory over the French at Puebla in 1862, celebrated annually as Cinco de Mayo (May 5).The French advanced again in 1863, forcing Juarez and his elected government to retreat to the north, first to San Luis Potosi, then to the arid northern city of El Paso del Norte, present day Ciudad Juarez, Chihuahua, and finally to the capital of the state, Chihuahua City, where he set up his cabinet and government-in-exile. There he would remain for the next two and one-half years. Meanwhile Maximilian von Habsburg, a younger brother of the Emperor of Austria, was proclaimed Emperor Maximilian I of Mexico on April 10, 1864 with the backing of Napo leon III and a group of Mexican conservatives.Before Juarez fled, Congress granted him an emergency extension of his presidency, which would go into effect in 1865, when his term expired, and last until 1867 when the last of Maximilian’s forces were defeated. In response to the French intervention and the elevation of Maximilian, Juarez sent General Placido Vega y Daza to the U. S. State of California to gather Mexican American sympathy for Mexico’s plight. Maximilian, who personally harbored liberal and Mexican nationalist sympathies, offered Juarez amnesty, and later the post of prime minister, but Juarez refused to accept either a government â€Å"imposed by foreigners†, or a monarchy.A legitimate Mexican throne had existed long before him, founded by Emperor Augustine I after independence had been achieved in 1821, but was abolished only a year later, during a domestic crisis. With its own civil war over, President Andrew Johnson invoked the Monroe Doctrine to give diplomatic recognition to Juarez’ government and supply weapons and funding to the Republican forces. When he could get no support in Congress, he supposedly had the Army â€Å"lose† some supplies (including rifles) â€Å"near† (across) t he border with Mexico. He would not even meet with representatives of Maximilian. Gen. Philip Sheridan wrote in his journal about how he â€Å"misplaced† 30,000 muskets close to Mexico. [7] Faced with this and a growing threat from Prussia, the French troops began pulling out of Mexico in late 1866. Mexican conservatism was a spent force and was less than pleased with the liberal Maximilian. In 1867 the last of the Emperor’s forces were defeated and Maximilian was sentenced to death by a military court.Despite national and international pleas for amnesty, Juarez refused to commute the sentence, and Maximilian was executed by firing squad on June 19, 1867 at Cerro de las Campanas in Queretaro. His body was returned to Europe for burial. His last words had been, ‘? Viva Mexico! ‘ Juarez was controversially re-elected President in 1867 and 1871, using the office of the presidency to ensure electoral success and suppressing revolts by opponents such as Porfirio Diaz. Benito Juarez died of a heart attack in 1872 while working at his desk in the National Palace in Mexico City. He was succeeded by Sebastian Lerdo de Tejada, his foreign minister. How to cite Benito Juarez, Papers

Advantages and Costs that Accrue to the City of Gold Coast

Question: Discuss about the Sports Management Advantages and Costs that Accrue to the City of Gold Coast. Answer: Introduction In the recent times, Commonwealth Games have grown into major international sporting events that attract large crowds of people from all over the world. The increasing interest in these games and the growing amount of capital invested in hosting these mega-events have seen many cities bidding to host the games as an opportunity of improving its economic and social aspects. Gold Coast is one of such cities that will be hosting the event come 2018. However, with so much attention trailed on the potential benefits that come from hosting such international sporting events, little attention has been given to the costs that accompany it. Thus, the present paper discusses the advantages and costs that accrue to the city of Gold Coast. The paper examines the economic, social and environment impact in the lead up to the events, during the event itself as well as five years after the event. Impacts of the 2018 Commonwealth Games to the Gold Coast City Economic Impacts (Jago Dwyer, 2013) in their view, considers economic impacts as the net sum of the all the economic consequences of the money that is attracted to the host city as a result of the event as it flows through the hosts economy. Before a sports event occurs, the host country often spends a lot of funds in constructing stadia, and it is accompanied facilities which can accommodate a large number of visitors. (Malfas, Houlihan, Theodoraki, 2004) argues that hosting the sports event can result in the generation of psychic income resulting from the psychological and emotional benefits which the Cold Coast residents will receive as being associated with the events. These psychic incomes may include prestige, power and fame and the greater the anticipated psychic income, the higher a consumer of the event will be willing to pay to attend the sports thus generating more revenue for the city (Wicker Sotiriadou, 2013). Based on the study conducted by (Prayag, Hosany, Nunkoo, Alders, 2013) on the 2012 Olympic Games, hosting a mega sports event such as Commonwealth games have both positive and negative economic impacts on the host country. Some of the positive economic impacts of the event according to the author include creating business and employment opportunities for the residents, increased tax revenues, improvements in the infrastructures especially the transportation network and stadia. Others are increasing in investment rates and associated accelerated growth for the local community and increased local expenditure in the host economy (Prayag, Hosany, Nunkoo, Alders, 2013). (Fredline Faulkner, 2000) supports the notion by indicating that hosting such mega event can improve the status of the destinations tourism industry which results from the increase in the number of tourists, their length of stay during and after the event and their level of expenditure. Enhanced tourism industry can generate more revenues to the host country through foreign exchange. The study conducted by (Lee Taylor, 2005), revealed similar results on economic benefits of hosting a sporting event based on the findings on the 2002 FIFA World Cup. On the other hand, it is also noted that hosting a mega event can result in numerous negative economic impacts to Gold Coast city which may discourage the host city from hosting future events. Some of the noted adverse economic impacts include increased tax burden for the local community, price inflation due to the rising demand and it can also lead to the mismanagement of public funds (Jago Dwyer, 2013). Hosting such a mega event such as Commonwealth games demands the construction of public facilities for the visitors and exorbitant operating costs in the form of wages and security equipment. These expenses are often regarded as misuse of taxpayers money as the event only last for a short period with not certain long-term impacts (Downward Ralston, 2006); (Lee Taylor, 2005). A good example of exorbitant expenditure was noted in the 2008 Beijing Olympics which had an estimated cost of over $40 billion causing a huge effect on the countrys Gross National Product (GNP). Conversely, mega events can further results in the crowding out of most regular business travelers on many occasions will tend to avoid the hosting city during the event and this leads to loss of revenues. In the long-term such as five years following the, it is noted by (Ritchie Smith, 1991) that hosting a mega event can result in the creation of global awareness of the host city thereby increasing its image in the international markets and this is vital for its tourism sector. Enhancing a region's brand in the global market can, in the long run, provide a stronger competitive position for the country and this intern enhances the citys tourism receipts. Social Impacts Social impacts of an event are associated with how the sporting event changes the standard way of life or the quality of the life of the residents of Gold Coast city. There are three primary categories of the social impacts of an event which include the effects on the host citys individuals and communities, the tourists and that which exist on tourist-host interrelationships (Lecture3, 2017). As observed by (Prayag, Hosany, Nunkoo, Alders, 2013), hosting mega sporting events such as the Olympics and the Commonwealth games can result in both positive and negative impacts before, during and after the event. Hosting a sporting event will help bring the community of the Gold Coast city together giving the residents the chance of meeting and interacting with new individuals. The event will further enhance the residents pride in the global arena, promote Gold Coast city as a desired tourist destination and makes the people understand and appreciate the different culture. Additionally, it will strengthen the cultural values and traditions of the residents and lastly, the event can help build the national identity (Ritchie Smith, 1991) ; (Malfas, Houlihan, Theodoraki, 2004). Social impacts of sporting events are mostly experienced during and after the event, and some of the positive social effects of the events as noted by (Ohmann, Jones, Wilkes, 2006) include shared experience among the locals and visitors, revitalization of traditions and expansion of the citys cultural perspectives. (Ohmann, Jones, Wilkes, 2006) further indicates such events increases community participation and togetherness, introduces new and challenging ideas vital for social growth and it can also lead to the enhancement of community pride and identity (Ohmann, Jones, Wilkes, 2006). Borrowing from the findings from the Sydney Olympics as noted by (Waitt, 2003), hosting the Commonwealth games will create a feeling of excitement and pride among many residents of the Gold Coast city during the period of the event. Through collective sharing, hosting of the Commonwealth will in the long-term enhance the quality of life of the residents through the act of urban regeneration (Fredline Faulkner, 2000). As observed by (Toohey, 2008), the concept of urban regeneration encompasses physical dimension that is in the form of architecture and the creation of the image and social perspective which enhances the quality of life of the residents of Gold Coast city. This rejuvenation of the city is therefore regarded as a long term effect of hosting a sporting event which often occurs after five years upon hosting the event. It leads to improved traffic conditions, reduced air pollution as a form of socio-environmental benefit and it also transforms the city and its peripheries hence improving the quality life of the residents (Waitt, 2003). Further, hosting the Commonwealth games can have positive tourism impacts on the community such as strengthening the communitys cultural values and building of the count rys identity (Prayag, Hosany, Nunkoo, Alders, 2013). Some of the noted negative social impacts that may accrue to Gold Coast City as a result of hosting the Commonwealth games may include substance abuse, social dislocation and high levels of prostitution. Hosting the games can also result in community alienation, loss of amenity resulting from noise and overcrowding, traffic congestion and the loss of social and leisure habits (Toohey, 2008). Other adverse effects that the city my experience in the short term include the disruption of community life, theft, community manipulation and increased crime rates due to the high number of individuals in the city. Environmental Impacts The mainly cited positive impact on the environment owing to mega events is related to the establishment of new infrastructure which includes stadia, better transport systems, enlarged airport capacities and considerable upgrades in the water and sewage systems. Arguably, upgrades of most of these facilities might not have been feasible either politically or financially without the anticipation of the events.(Fredline Faulkner, 2000), argue that mega events often provide a strong rationale for accelerating urban regeneration developments as well as the reallocation of scarce resources that otherwise might have taken many years of planning. (David, 2009) observes that the preparation for the events also leads to the regeneration of run-down parts of the country which accelerates the realization of intergenerational equity where resources are distributed equitably to various parts of the hosting city to ensure optimal standard and capacity of international participation(Lecture5, 2017 ). Indisputably, prior to the mega sports events, considerable adjustments are made on the environment with the high hopes of enhancing the aesthetic view, especially for the many incoming guests. (David, 2009) observes that serious concerns are often placed strategically on improving the outlook for the ecologically systems in the drive to facilitate easy mobility and access to various facilities for the use of the events in particular by the residents of Gold Coast (Lecture4, 2017). During the sports events, the growing consumer sentiment especially in regard to the mega events and on their livelihood would improve the overall quality of life of the Gold Coast residents. Most people will become considerably aware of their environment and its place at the centre of sustainability of sport and other major events. Five years down the line, the environmental impact would still be felt especially in those areas where considerable efforts were placed in restoring the countrys natural herita ge. However, (Faulkner, 2003) attest to the reality that while the preparation for the mega sports events may fast-track infrastructural developments, these rapid developments presents a significant ecological threat to the sustainability of the environment in almost all fronts. Extant literature raises concerns about the lack of correlation that exist between pre-event infrastructural investments in optimistic projections which include anticipated benefits and eventual post-event outcomes which are complex and not easily assessed quantitatively especially owing to their occurrence over extended periods (Faulkner, 2003). During the periods of mega sports events, people are often overtaken by the happening in their immediate surrounding to their extent that they overlook the environmental cost of hosting the event. An examination of mega-events literature shows that in most developing nation, tourism development is dependent on the appeal of the available natural resources, serene and beautiful landscapes which are always associated with the sensitive ecosystem (David, 2009). Emerging pieces of literature suggest that crowding of people at various sporting places have the potential of impacting negatively on the local ecosystems by hastening pollution and waste to some specific biological and culturally diverse places. The mega-events lead to exploitation of reserves of some irreplaceable natural capital as well as destructing the natural heritage in the areas. (Lockstone Baum, 2008) observes that a lot of energy and water is often consumed during these events and the results are huge carbon footprin ts on the environment which is felt even after many years following the events. Five years after the event, Gold Coast will experience the impact of the generated greenhouse gasses which were mainly emitted primarily by transport activities during the mega-sport event. Some scholars have argued that the carbon footprints have led to shifting climate change which has drastic impact on other sectors such as agriculture as well as the natural coexistence of various inhabitants of the ecosystem. Further, (Fredline Faulkner, 2000) observes that hosting mega-events also have long term effect on flora and fauna especially in protected areas. The author notes that although events attendees may pose minimal threat to flora and fauna more so directly, the crowding of people may interfere with the order of the natural habitat which may have an adverse effect on the breeding and feeding patterns of the animals. Consequently, the population of animals and vegetation may shrink even after many years following the major events such as sports (Collins, Jones, Munday, 2009). B esides, extreme ecological disturbance may also enhance migration of some animals and this lead to decline economic advantage of the country in terms of decreased tourism activities. Economic, Social and Environmental Impacts on the Triple Bottom Line of Events Over the years, the real value of what (Downward Ralston, 2006) would regard as worth of planned mega events have always been obscured by the unanimous over-emphasis on one aspect of it all, namely event tourism or so to say economic benefits. The social and cultural values of events have until recently been ignored to the extent that it is troubling to identify let alone measure them. Again, the environmental impact of event tourism has always been given inadequate attention in a manner that pollution and waste associated with these events have not been included in the economic assessment. Thus, many scholars among whom(Lecture5, 2017);(Lecture9, 2017) have conceived the inadequacies that are inherent in having one vantage point of assessing the value of mega-events, and this led to the introduction of a multi-thronged approach to evaluating the sustainability of the events. The new paradigm, the "triple-bottom-line" approach goes beyond the traditional parameters of measurements of economic benefits, namely return on investment, shareholder value to include social and environmental aspects of the games. Essentially, the new approach provides a comprehensive assessment of the mega-events along integrated facets of economic gains, the people and the planet in the drive to achieve sustainability goals. In applying TBL to mega-events management, (Fairley, Tyler, Kellett, DElia, 2011) provides a combination of TBL approach and Stakeholder Theory so that the outcomes can be enhanced to the interest of all stakeholders. Themanagement of stakeholders demands simultaneous attention to the legitimate interest of all parties involved when an event is hosted in a country. In event tourism, TBL approach ensures that every organization is held responsible or accountable for their economic, environmental and social contribution and the outcomes of the assessments mus t be communicated effectively to the relevant stakeholders. Mega-sport events often play significant roles in host destinations in terms of improving the economy, enhancing and enriching peoples culture as well as societal values (Downward Ralston, 2006). As spatial and temporal phenomena, sports provide unique moments of the interaction of different people in diverse settings and within differentmanagement systems. The obvious outcome of these interactions is always the economic value that the country gets during and even after the main event. An examination of the social, economic and environment impacts, reveal considerable effects on the triple bottom line of events. Socially, hosting events creates psychic benefits that are intangible but useful to the recipients as they help improve their feelings towards things, increase their civic pride as well as promote existence values. According to (Faulkner, 2003) since sports fans and tourist are major stakeholders who have powerful and legitimate claim on the mega-event, their interest is at the core of the social impact of the events. Thus, the very success and excellence of the events depend entirely on the attitude and satisfaction that these groups of individuals gain from the hosted games. The Gold Coast residents will have the opportunity to enjoy bequest value sometimes after the events, and this leads to increased cultural integration and participation. By hosting the events in 2018, the country will be placing its local businesses and economic infrastructures at a strategic position for an economic boost and tremendous expansion.(Lockstone Baum, 2008) observe that Gold Coast residents stand a chance of benefiting directly from hosting the Commonwealth Games. It is a position that has received support from (Waitt, 2003) who cited the Sydney example the economic benefits that the country enjoyed after the events. Additionally, considering the environmental impacts, hosting mega-sport events create considerable awareness to the environment. Many projects will be initiated to enhance proper utilization of the environment while at the same time increase accessibility and capacity of the facilities. In other words, the very anticipation of hosting the Commonwealth Games would initiate establishment and regeneration of projects especially in areas that would otherwise remain undeveloped (Lecture6, 2017). However, the degeneration and degradation of the environment and destruction of natural heritage would open a new page where necessary policies geared towards sustainable would be established to ensure conservation of the environment. Conclusion Hosting Commonwealth Games provides considerable benefits and of course associated costs in the country especially in terms of its economy, social aspects as well as environmental dimensions. A critical review of emerging literature shows that despite the many preparations and large financial inputs, the outcomes of the games are often felt on the two sides of the divide in almost equal measure. Some of the impacts either positive or negative may be considered over a short period or even extended periods of time after the games. Major international games invigorate the establishment of modern infrastructures that are meant to improve communication, transportation, and access to various facilities as well as improvement of social amenities. On the other hand, mega-sport events have a drastic negative impact on the social degradation of a community, economic stability as well as massive degradation of the environment. Thus, is almost every measure, these impacts have a consequential ou tcome on the sustainability of such games in a country. References Collins, A., Jones, C., Munday, M. (2009). Assessing the environmental impacts of mega sporting events: Two options?. Tourism Management, 30(6), 828-837. David, L. (2009). Environmental Impacts of Events. In R. Raj, J. Musgrave, (Eds.), Event management and sustainability (pp. 66-74). UK: CABI. Downward, P. M., Ralston, R. (2006). Downward, P.The sports development potential of sports event volunteering: Insights from the XVII Manchester Commonwealth Games. . European Sport Management Quarterly,, 6(4), 333-351. Fairley, S., Tyler, B. D., Kellett, P., DElia, K. (2011). The formula one Australian grand prix: Exploring the triple bottom line. Sport Management Review, 14(2), 141-152. Faulkner, H. W. (2003). Evaluating the tourism impacts of hallmark events. In H. W. Faulkner, B. Faulkner, Progressing Tourism Research (pp. 93-113). Bristol: Channel View Publications. Fredline, E., Faulkner, B. (2000). Host community reactions: A cluster analysis. Annals of tourism research, 27(3), 763-784. Jago, L., Dwyer, B. (2013). Events and economics. In R. Finkel, D. McGillivray, G. McPherson, P. Robinson, Research themes for events (pp. 68-77). CABI. Lecture3. (2017). Social Impacts of Events on the Host Community. Lecture4. (2017). Social Impacts of Events on Event Visitors. Lecture5. (2017). Impacts of events on natural and built environments. Lecture6. (2017). Impacts of the economy on event tourism. Lecture9. (2017). Triple Bottom Line Evaluation. Lee, C. K., Taylor, T. (2005). Critical reflections on the economic impact assessment of a mega-event: the case of 2002 FIFA World Cup. Tourism management, 26(4), 595-603. Lockstone, L., Baum, T. ( 2008). Fun in the family: Tourism and the Commonwealth Games. International Journal of tourism research, 10(6), 497-509. Malfas, M., Houlihan, B., Theodoraki, E. (2004). Impacts of the Olympic Games as mega-events. Municipal Engineer, 209-220. Ohmann, S., Jones, I., Wilkes, K. (2006). The perceived social impacts of the 2006 Football World Cup on Munich residents. Journal of Sport Tourism, 11(2), 129-152. Prayag, G., Hosany, S., Nunkoo, R., Alders, T. (2013). London residents' support for the 2012 Olympic Games: The mediating effect of overall attitude. Tourism Management, , 36, 629-640. Ritchie, J. B., Smith, B. H. (1991). The impact of a mega-event on host region awareness: A longitudinal study. Journal of Travel Research, 30(1), 3-10. Toohey, K. (2008). The Sydney Olympics: Striving for legaciesovercoming short-term disappointments and long-term deficiencies. The International Journal of the History of Sport , 25(14), 1953-1971. Toohey, K., Taylor, T. (2008). Mega events, fear, and risk: Terrorism at the Olympic Games. Journal of Sport Management, 22(4), 451-469. Waitt, G. (2003). Social impacts of the Sydney Olympics. Annals of Tourism Research, 30(1), 194-215. Wicker, P., Sotiriadou, P. (2013). The Trickle-Down Effect: what population groups benefit from hosting major sport events? International Journal of Event Management Research , 8(2), 25-41.

Qualities of a Leader free essay sample

Supervisor means a leader. So, you have to describe a qualities in a leader. Good leader is a strong-willed, have enough influence and respect to have people following him. Good leader is a team player. So think about  it and describe it. imagine you have a supervisor and think how would you wanted to be treated by him and write about it. 10Would you prefer to go on a long trip by car or by train? If i have to choose from car and train for long trip then i prefered to go by train only. first resone is that if i go by train then i do not have to drive. I simply use my this time in reading books or any other magazines. And after long driving may be i can not enjoye the place of my destination. And if i go by train then i feel like fresh so i enjoye my trip as well as the place of destination also. We will write a custom essay sample on Qualities of a Leader or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Second resone why i prefer train becouse, i meet with different peoples. And i talk with him and get involved in good discossion. And that way i improve my communication skills and mack new friend from different field. So in my oponoin for long trip i would go by train ruther then driving car. 15. Some students try to do moderate amounts of homework on a daily basis. Others prefer to get their homework done in one go over 1-2 days. Which do you prefer? Homework on a daily basis * can concentrate more on studies and easy to understand the lectures * less burden 33. Some people want to have specific instructions or directions when they try something new. Other people like to experiment and work things out for themselves. Which do you prefer? Experiment and work things out * easy to remember and long lasting * more satisfying and rewarding Hope this helps!! I think the person Id most like to travel overseas with would have to be my wife. (Uh) my wife and I have been married for about 6 years, and we have (uh) a family, with two young children. And (uh) the main probably the first main reason I would choose her is, I think shed really appreciate the chance to travel overseas; (uh) shes had limited travel experience,  (uh) for example, shes only  been really  to Australia and Thailand, outside her home country of Korea so, I think shed really appreciate the wider experience. (Um) and the second reason is I think itd be  great for our relationship. (Um) weve been so weighed  down with so many responsibilities, and (uh) I think itd be a chance to get some great new memories and experiences together.

The eNotes Blog Happy Birthday to the NationalArchives

Happy Birthday to the NationalArchives The National Archives houses our nations most important records   including [a]ll archives or records of the U.S. Government, legislative, executive, or judicial documents as well as motion-picture films and sound recordings illustrative of historical activities of the United States. If you had to guess how old such an important administration would be, what would you say? 200 years? More? Nope.   On June 19th of this year, the institution turned just seventy-nine years old. Proving that government has long moved at the speed of a handicapped slug, it took until the early twentieth century for legislators to think, Hmmmm. perhaps we need an official location for our treasured, important documents, and establish the National Archives. A historian named J. Franklin Jameson took up the cause of promoting such a facility in 1908. Eighteen years later, in 1926, he finally raised enough money to fund construction of the National Archives.   And then it took another eight years for legislation to come to Capitol Hill (by which time the building was already under construction). President Herbert Hoover laid the cornerstone in 1933, just a couple weeks before   Franklin Delano Roosevelt took office. And then things stalled again. FDR was perhaps understandably distracted by the enormous problems of the Great Depression. He waited another three months to enact legislation naming an archivist. The job finally went to a professor of history from North Carolina,  R.D.W. Connor, at a salary of $10,000 per year. What sort of historically important documents are housed at the National Archives? The Declaration of Independence The Articles of Confederation The Constitution The Bill of Rights The Louisiana Purchase The Emancipation Proclamation Just to name a few. You can few the entire list and see image of the documents at the National Archives Home Page here. (Source)

Course project Assignment Example | Topics and Well Written Essays - 250 words

Course project - Assignment Example and emblems on baby clothing that creates that old fashioned feeling and make it a distinct legacy that will be passed on from one generation to the next. In line with pull marketing, I will utilize a lot of advertising to boost consumer desire for the product. Aside from traditional advertising in print and visual media, I plan to make use of the Internet. Open Forums, Blogs, Twitter and social forums is the best way to let a lot of people know of my business. Creating my own web page would lead them to my store with one click. I can post pictures of my products. My target clientele of moms busy at work or those already waiting for the big day at home can easily contact me and even place orders through my website. This manner of reaching to the buying public and conducting business on-line is a part of eCommerce: Another part of eCommerce that can prove beneficial and advantageous for me is that I can make direct orders from suppliers. This is a fast, efficient and economical way to place orders and purchase at wholesale from suppliers anywhere abroad. This is also cost effective since there are no â€Å"middle men† who adds costs to the base price of manufacturers. These manufacturers are also doing their wholesale sales on line: DhGate provides over 3,000,000 products from verified wholesalers from China; B2B offers branded items from Italy; while GlobalSources showcases credible manufacturers and wholesale suppliers.iii They can even facilitate faster delivery of the merchandise directly to my customers. They will wrap the item in my stores name and send it to my customers’ home at no extra charge. This service is called â€Å"dropshipping.†iv There are other benefits that I have yet to uncover. As of now, I can say that eCommercev can contribute a lot to the success of my

Theories, models and techniques on Business Environment, Marketing and Assignment

Theories, models and techniques on Business Environment, Marketing and Human Resources - Assignment Example The growth of businesses in the modern market is depended on their ability to face the market’s pressures – as these pressures are reflected to the delays and the difficulties each organization faces when trying to secure its position towards its rivals. Current paper is important for the following reason: it explains the potential relationship among key organizational aspects, such as business environment, marketing and human resources. Moreover, it clarifies the terms under which the above frameworks can be developed. At this point, the reference to the theories and the techniques used for promoting organizational growth – especially in regard to the above frameworks – has been considered as necessary for highlighting the following issue: organization is a complex entity – meaning its processes but also its needs. For responding to the needs of organizations, as parts of the business environment in all markets worldwide, theorists and researchers have developed appropriate theoretical and practical models. It has been proved that the management of critical organizational factors can be based on tools and theories which have similar characteristics; however, the level at which these theories and techniques are effective is not standardized. The literature published in the specific organizational sectors, those mentioned above, has been carefully reviewed – as possible.... It has been proved that the management of critical organizational factors can be based on tools and theories which have similar characteristics; however, the level at which these theories and techniques are effective is not standardized. The literature published in the specific organizational sectors, those mentioned above, has been carefully reviewed – as possible. It has been proved that even if business operations are likely to be equally addressed – in terms of their needs – there are organizational sectors which are likely to attract more the attention of organization’s management team – for example HR needs are often set as a priority when designing the organizational plans while other aspects of the organization are not given equal attention, for example, the marketing of the firm’s products/ services. Such phenomenon is explained by the following fact: all firms are likely to be based on certain sectors/ operations. These sectors are not equal, in terms of their contribution in the development of daily organizational tasks. For instance, employees are traditionally considered as being the most important organizational asset; however, today, the role of employees within organizations has been changed – not only financially. The theories, models and techniques presented below reflect this inequality but at the same time they highlight the following problem: the monitoring on the firm’s practices is often problematic, meaning that employees are not always aware of their obligations towards the organization. The use of the theories, models and techniques suggested above could help to the increase of effectiveness of organizational plans – since the planners of the

History of the Republican Party in Texas Essay Example | Topics and Well Written Essays - 500 words

History of the Republican Party in Texas - Essay Example 105). Republicans struggle led to formal organization of the party, and they held their first state convention on July 4 at Houston. Republican leadership came from wartime Texas Unionists and antebellum, who were supporters of Sam Houston (scalawags), newly franchised blacks, and recent immigrants from the North (carpetbaggers) (Newell et al. 136). Texas Unionists controlled the party’s proceedings. The party’s first convention that was held in Houston was chaired by Elisha M. Pease, former governor, and Col. John L. Haynes, commander of the First Texas Cavalry, was the party’s fist executive-committee chairman (Newell et al. 141). Blacks are one of the groups that strongly supported the Republican Party in Texas in the early days. The GOP membership comprised of 90 percent African Americans, and about 44 African Americans served in the Texas legislature as Republicans (Newell et al. 147). Blacks strongly supported Republican Party because one of its main agendums was to abolish slavery. The Republican club of Texas was founded in 1947 by Captain J. F. Lucey of Dallas (Newell et al. 204). Through this club, a drive was initiated to establish a potent Republican Party in the Lone Star State (Newell et al. 204). The Republican Party of Texas entered transitional era between 1950 and 1978. During this period, this party increasingly gained strength and popularity. The number of Texans who identified themselves with the party at the state level increased significantly. Republican’s presidential candidates secured more than 48 percent of votes during 1960s and 1970s, except in 1964 and 1968 (Newell et al. 217). 1961 marked the party’s greatest achievement, when John G. Tower won the United States senate in a special election to replace Lyndon B. Johnson. This gave the party strong leadership, and its geographic and urban bases remained strong (Newell et al.

PESTEL Analysis of ADMAC

PESTEL Analysis of ADMAC A PESTEL analysis is a business measurement tool. PESTEL is a short form for Political, Economic, Social, Technological, Environment and Legislative factors, which are used to assess the market for a business or organisational unit. The PESTEL analysis is a useful tool for understanding the environmental influences in which organisation are operating, and the opportunities and threats that lie within it. By understanding the environment in which is operating can take advantage of the opportunities and minimise the threats. Specifically the PESTLE analysis is a useful tool for understanding risks associated with market growth or decline, and as such the position, potential and direction for a business or organisation. PESTLE analysis is in effect an audit of an organisations environmental influences with the purpose of using this information to guide strategic decision making. The assumption is that if the organisation is able to audit its current environment and assess potential changes, it will be better placed than its competitors to respond to changes. PESTLE analysis can be used for business and strategic planning, marketing planning, organisational change, business and product development and research reports. To be effective a PESTLE needs to be undertaken on a regular basis. Organisations that do analyses regularly and systematically often spot trends before others thus providing competitive advantage. The Purpose and Function of PESTEL Analysis The purpose of the PESTEL analysis to assess the industry which and company is in. The analysis is to help make decisions and to plan for future events which they operate in the organisation. In addition PESTEL analysis helps to understand the limited influence or impact and all factors that influence an organisation but are out of its direct control. An organisation on its own cannot affect these factors, nor can these factors directly affect the profitability of an organisation. But by understanding these environments, it is possible to take the advantage to maximise the opportunities and minimise the threats to the organisation. Businesses need to take a pro-active approach and be ahead of these changes, rather than hurriedly making alterations to products and processes in a reactive way. This can be achieved through a PESTEL analysis, i.e. an investigation of the Political, Economic, Social, Technological and Legal influences on a business. These forces are continually in a state of change. Political factors are how and to what degree a government intervenes in the economy. Political changes are closely tied up with legal changes and it continually being updated in a wide range of areas. Specifically, political factors include areas such as tax policy, environmental regulations, trade restrictions and reform, tariffs, and political stability. Political factors may also include Social and employment legislation and it will provide information about potential opportunities and threats around labour changes, for example skills shortages. Economic changes are closely related to social ones. The economy goes through a series of fluctuations associated with general booms and slumps in economic activity. In a boom nearly all businesses benefit and in a slump most lose out. Other economic changes that affect business include interest rate, exchange rates and the rate of inflation. In addition Stage of business cycle, Unemployment and labour supply, Labour costs likely changes in the economic environment. These factors have major impacts on how businesses operate and make decisions. Businesses will be more encouraged to expand and take risks when economic conditions are right. For example low interest rates and rising demand. Social factors include health consciousness and include the cultural aspects, career attitudes, population growth rate, age distribution and emphasis on safety. A major component of this is a change in consumer behaviour resulting from changes in fashions and styles. Trends in social factors affect the demand for an organisations products and how that organisation operates. Technological factors include technological aspects such as reduction in communications costs and increased remote working, automation and Impact of Internet. New technologies are continually being developed and the rate of change itself is increasing. The creation of databases and electronic communications have enabled vast quantities of information to be shared and quickly distributed in a modern company enabling vast cost reductions, and often improvements in service. They can determine barriers to entry, minimum efficient production level and influence outsourcing decisions. Furthermore, technological shifts can affect costs, quality, and lead to innovation. Environmental factors include ecological and environmental aspects such as weather, climate, and climate change, which may especially affect industries such as tourism, farming, and insurance. Furthermore, growing awareness of the potential impacts of climate change is affecting how companies operate and the products they offer, both creating new markets and diminishing or destroying existing ones. Legal factors include discrimination law, consumer law, antitrust law, labour law, and health and safety law. These factors can affect how a company operates, its costs, and the demand for its products. In addition this may impact access to materials, quotas, resources, taxation imports and exports etc. Discussion of most pressing issues of company currently facing on ADMAC is the well reputed Real Estate Management and construction company in UAE. Over the past 30years the company successfully completed number of real estate residential projects in UAE. Due to nature of the ADMAC with particular reference to how it has running itself and the current economic climate the assessment of external factors by a PESTEL analysis has been crucial in ADMAC success. This is becourse ADMAC has taken into account the implication for consumers, employees, associated organisation and the company mission statement. Each external factor would have been and continues to be examined and categorised in terms of whether its implication is negative or positive large or minor significance, continues impact so on. Whether the scanning of ADMAC, economy downturn in UAE is most pressing issue of the company has faced. Following discussion is to explain how it impacts the company. Past recent years there was economy boom at UAE, more development projects, infrastructure projects and real estate project was started and huge amount of money was invested. The sharp increase in construction, along with other key factors, has meant the industry was seeing a lack of skilled and unskilled construction staff. The demand for certain categories of employees and skill is also influenced by changes in social structure in an economy. Firms employing in construction have greatly enhanced the worth of technicians, surveyors and engineers during the last couple of years. In that time the firms are offer generally high salaries and wages due to competition of workforce of industry. The boom of economy now over, while the present it going to down little by little, therefore the climate of economic and labour market in UAE is low. Companies operating in fields like ADMAC have compelled to reduce their workforce due to high competition and short of new real estate construction projects. ADMAC have maintained excess workforce up to now but still excess labour turnover creates unnecessary expense and reduces efficiency to the firms. In some situations even after implementing some of the cost saving initiatives, redundancies can still become inevitable and this can pose significant challenges for an employer as many complex issues need to be address including legal, compensation, natural turnover of workers of the company and future economic changes of the region. Most property markets are certainly influenced by the forces of supply and demand. In the economy boom time thousands of new residents and workers are arriving in UAE causing demand for property to increase. In that time, many firms like ADMAC were having more than enough real estate construction projects. Unfortunately economy is now downturn, therefore many residential properties are not rented out or relinquish. The result of that is either ADMAC or other firms in the field are unable to get value for money from the residential properties where they were invested. On present economy climate of UAE, the investors are not investing a new residential project. Therefore competition between contractors are high due shortage of residential project. As a result ADMAC used to reduce their profit and risk markups to win the new contracts. In this reason the company profitability is squeezed or some financial losses due to unexpected risk in the construction. The above impacts are currently most pressing issue of ADMAC and those are occurring company financially unstable. 4.1.0 Example of PESTEL. POLITICAL The UAE Government has established a Federal Real Estate Regulatory Authority in order to co-ordinate regulatory efforts at the local and federal level. [source: EstateDubai.com] The main concern of the authority is about foreign property developers, who wholly finance their projects from local banks, without sufficient capital. Some foreign developers even depend on the local banks for complete funding, putting the lenders at risk of losing their finances, when the developer fails to complete their projects, or flee the country, leaving behind a huge debt. The government intention a regulation is to limit the finance being made available to foreign developers, who do not have a stake in the capital of their projects. So that regulation is help to keep real estate sector safe during the recession time. Over the last few years the UAEs real estate property market seen remarkable growth. The local burgeoning real estate property industry is anchoring the UAE governments economic diversification efforts. Favourable government policy frameworks and active participation of private sector have facilitated one of the worlds most desirable economy environments in terms of investments and revenue generation. Further, population growth, rapidly increasing economy, progressing service sector and promising travel and tourism sectors, rising purchasing power and strong consumer confidence are driving the industry. The modern shopping malls anchoring modern hypermarkets, highly developed free trade zones, shopping events and relaxed tax provision provide auxiliary growth thrust to the real estate sector. ECONOMY Economic conditions are influenced by political and government policy, being a major influence affecting government decisions. The UAEs central bank was keeping interest rates low to encourage economy growth in the country during the recession time. [www.arabianbusiness.com]. Interest rates play an important role in real estate activity. High interest rates tend to freeze the real estate market. If the interest rates are low, housing is more affordable and also is encourage homeowners to upgrade their houses. This will increase the demand of Real Estate market. In other hand interest rates affect the cost of capital and therefore to what extent a business grows and expands, it will be attractive for company to invest and grow with expectations of being profitable. Oil Company in UAE has decided to increase petrol prices by 11% which is highest percentage of gulf region.[source: Khaleej Times]. This price hike of the construction materials is attributed to the increase in fuel prices as they have directly impacted the construction and transportation costs, thus having a multiplied effects and a significant decrease in profit margins of the company. SOCIAL The UAE is very receptive to inflows of educated skilled people. The expatriate community is one of the largest in the world. However, for the most part the process for obtaining a visa is very simple and most applications are accepted. In this reason, UAE construction and real estate sector not expecting shortage of skilled workforce in the country near future. The UAE is a traditional Muslim country where the teaching of Islam plays a vital role in every aspect of life. From politics to education, from business to foreign relations, people look to Islam for direction. Thus the women have many more restriction as per their traditional teaching. Although, the society is slowly accepting women in the workplace. According to recent reports, now more than ever women are entering the workforce and even starting their own businesses, which is a significant improvement considering the restrictions women face. For the construction sector, women of the UAE and their continuing advancement mean a potential market with wide possibilities. TECHNOLOGY Technology is widely recognised by on strategic management as part of the organization and the industry part of the model as it is used for the creation of competitive advantage. Today, this means using computers wherever possible is to be easy organisation work process. Keep detailed record that can be accessed immediately, make financial transaction faster. Maintain the necessary level of stock factories or retail outlets or speed up communication via the Internet and emails. The effectiveness of companys advertising, marketing and promotional programs. The new technology of internet and television which use special effects for advertising through media. They make some products look attractive. ENVIRONMENT UAE new infrastructure facilitate plan including high speed metro projects and road project interconnecting with seven emirates will foster higher development and maturity in the real estate market. The prices of properties located close to metro stations and bus stations are already beginning to rise, marking the first signs of a transportation plan effect on the property market. The trend implies that with just three months left for the opening of Metros Red Line, home buyers are already beginning to take into consideration the ease of transport when choosing their home. This is a positive sign for real estate market, which has had a difficult year with the prices of flats and villas. One of the main reasons UAE is gaining popularity and attracting investors and visitors is the attractions it has to offer. Here the sun shines all around the year and the city offers a taste of exotic and exiting pleasures to all its visitors, irrespective of their age. All the modern facilities and infrastructure of the west combined with eastern hospitality and local customs make one feel like home in UAE. This has led to many people migrating here for work and living in the mild weathered heaven. This increased the demand for real estate and property and renowned developers and builders stepped in to adorn UAE with the worlds most exciting towers, shopping plazas, residential duplexes and business complexes. [source :BuyDubaiproperty] LEGAL Legislations pertaining to issuance of permanent resident status for foreigners purchasing a freehold property in select housing projects will further strengthen the real estate market in UAE. Recently, UAE government reviewing their property market regulation to assess the impact of the global financial crisis on current economy climate in the country, which has been hit due to an outflow of capital. According to the Gulf news The UAE federal government is reviewing the issue of freehold property visas linked to foreigners ownership of properties in different emirates. It is positive news and will bring a lot of faith and confidence in the market and freehold visas is to attract foreign investors to real estate sector in UAE. Mortgage Law No 14 for 2008, legalizing the housing finance sector in a 35-article law includes all procedures concerning a mortgage and its legal effects on the concerned bodies, as well as execution procedures on the mortgaged property, and the relations between the mortgage lender and borrower based on international best practices. The law will help better regulate the emirates growing real estate market, partly tainted by project delays and corruption probes. The law stipulates that mortgage contracts be registered with the Land Department, specifying the size of the loan, the repayment period and the value of the property. The law makes all mortgage deals that are not registered with the Land Department null and void, allowing the department to better regulate property and mortgage transactions. The law also requires that mortgages taken out on properties be sold by registered financial institutions, and be insured. It also regulates relations between both parties involved in the mortgage process, and the Land Department, which is responsible for implementing the law and ensuring the rights of both parties. Under the law, mortgage lender shall be a bank, financial institution or a finance company licensed by the UAE Central Bank to practice the activity of property finance. The law will definitely boost investor confidence in the real estate market of Dubai and expand the housing finance sector. 6.0.0 Conclusion Business planning at planned levels is a continuing process by which the long-term objectives of a company may be formulated, and subsequently attained, by means of long-terms planning actions designed to make their impact on the company as a whole. Corporate planning also involves deciding the policies of the company in pursuit of its objectives. Thus business aims and ethical considerations are brought together. PESTEL analysis looks at the external environment influence and is an appropriate strategic tool for understanding the environment in which business operates, enabling the company to take advantage of the opportunities and minimise the threats faced by their business activities. When strategic planning is done correctly, it provides a solid plan for a company to grow into the future. With a PESTEL analysis, the company can see a future of time, and be able to clarify strategic opportunities and threats that the organisation faces. By looking to the external environment to see the potential forces of change looming on the future, firms can take the strategic planning process out of the field of today and into the future.

Expressionism in The Black Swan Essay -- Film Analysis

The Black Swan is a psychological thriller that documents a prima ballerina’s descent into madness. Nina Sayers is a dancer at a New York City ballet company. Her mother is a very controlling, ex-ballerina whose career ended when she became pregnant with Nina. Having forced his current prima ballerina into retirement, Thomas Leroy, the company's director, is searching for someone worthy enough to play the Swan Queen in his next production. Despite his doubts about her ability to successfully dance the role of the Black Swan, he gives the role to Nina. However, Nina fears Lily is trying to steal the Swan Queen role from her especially when Leroy makes Lily Nina’s understudy. As they move further into the production, Nina's strive for perfection with the White and Black Swan roles causes a slow descent of her mental state. By using a variety of expressionistic techniques, Director Darren Aronofsky uncovers Nina’s worsening psychosis. (Huggo) Obsessive Compulsive Disorder is an â€Å"anxiety disorder characterized by uncontrollable, unwanted thoughts and repetitive, ritualized behaviors you feel compelled to perform† (Segal and Smith, â€Å"Obsessive-Compulsive Disorder (OCD): Symptoms, Behavior, and Treatment†). This disorder occurs when the brain becomes obsessed with a specific action or thought. Uncontrollable, recurring thoughts and images, known as obsessions, can take attention away from more important matters. Compulsions consist of actions and rituals that one is compelled to carry out multiple times. (Segal and Smith, â€Å"Obsessive-Compulsive Disorder (OCD): Symptoms, Behavior, and Treatment†) Nina's obsession is perfection. She states repeatedly that she â€Å"just wants to be perfect† (Aronofsky). Her compulsion is practice. No matter ho... ...sychiatrists-diagnose-natalie-portmans-portrayal-psychosis/story?id=12436873&page=1>. Schoenstadt, Arthur. "Bulimia." Bulimia. 23 Sept. 2008. Web. 22 May 2012. . Segal, Jeanne, and Melinda Smith. "Anorexia Nervosa: Signs, Symptoms, Causes, Effects, and Treatment." Helpguide.org. May 2012. Web. 15 May 2012. . Segal, Jeanne, and Melinda Smith. "Obsessive-Compulsive Disorder (OCD): Symptoms, Behavior, and Treatment." Helpguide.org: Understand, Prevent and Resolve Life's Challenges. Apr. 2012. Web. 10 May 2012. . Segal, Jeanne and Melinda Smith. "Understanding Schizophrenia." Helpguide.org. Jan. 2012. Web. 10 May 2012. .

A Case Study on Cost Estimation and Profitability Analysis

ISSUES IN ACCOUNTING EDUCATION Vol. 26, No. 1 2011 pp. 181–200 American Accounting Association DOI: 10. 2308/iace. 2011. 26. 1. 181 A Case Study on Cost Estimation and Pro? tability Analysis at Continental Airlines Francisco J. Roman ABSTRACT: This case exposes students to the application of regression analyses to be used as a tool pursuant to understanding cost behavior and forecasting future costs using publicly available data from Continental Airlines. Speci? cally, the case focuses on the harsh ? nancial situation faced by Continental as a result of the recent ? ancial crisis and the challenges it faces to remain pro? table. It then highlights the importance of reducing and controlling costs as a viable strategy to restore pro? tability and how regression analysis can assist in this pursuit. Students are next presented with quarterly data for various categories of costs and several potential cost drivers, which they must use to perform regressions on operating costs using a variety of cost drivers. They must then use their regression results to forecast operating costs and conduct a pro? tability analysis to project quarterly pro? ts for the upcoming ? scal year.Finally, students must summarize the main results of their analysis in a memorandum addressed to Continental’s management, providing recommendations to restore pro? ts. In particular, the concept of mixed cost functions is reinforced, as is the understanding of the steps required to perform regression analysis in Excel, interpreting the regression output, and the underlying standard assumptions in regression analysis. The case has been tested and well received in an intermediate cost accounting course and it is suitable for both undergraduate and graduate students. Keywords: cost estimation; pro? ability analysis; cost behavior; regression analyses; cost functions. Data Availability: All data are from public sources and are available in hard copy inside the case. Data are also availabl e in electronic form by the author upon request. INTRODUCTION n 2008, the senior management team at Continental Airlines, commanded by Lawrence Kellner, the Chairman and Chief Executive Of? cer, convened a special meeting to discuss the ? rm’s latest quarterly ? nancial results. A bleak situation lay before them. Continental had incurred an operating loss of $71 million dollars—its second consecutive quarterly earnings de-I Francisco J. Roman is an Assistant Professor at Texas Tech University. I thank Kent St. Pierre editor , Michael Costa, and two anonymous referees for their suggestions on previous versions of the case. Editor’s note: Accepted by Kent St. Pierre Published Online: February 2011 181 182 Roman cline that year. Likewise, passenger volume was signi? cantly down, dropping by nearly 5 percent from the prior year’s quarter. Continental’s senior management needed to act swiftly to reverse this trend and return to pro? tability. Being the fourth largest airline in the U.S. and eighth largest in the world, Continental was perceived as one of the most ef? ciently run companies in the airline industry. Nonetheless, 2008 brought unprecedented challenges for Continental and the entire industry as the United States and much of the world was heading into a severe economic recession. Companies cutting deeply into their budgets for business travel, the highest yielding component of Continental’s total revenue, together with a similar downward trend from the leisure and casual sector, combined to sharply reduce total revenue.Concurrent with this revenue decline, the price of jet fuel soared to record levels during 2008. 1 Thus, while revenue was decreasing, Continental was paying almost twice as much in fuel costs. Interestingly, fuel costs surpassed the ? rm’s salaries and wages as the highest cost in Continental’s cost structure. This obviously had a negative impact on the bottom line, squeezing even fur ther the already strained pro? t margins. The outlook for a quick recovery in the U. S. economy and, consequently, an upturn in the demand for air travel in the short term did not seem likely.Continental’s internal forecasts indicated that a further decline in passenger volume should be anticipated throughout 2009, with a recovery in travel possibly occurring by the middle of 2010. To summarize, adverse economic conditions in the U. S. , coupled with the rise in fuel costs, were dragging down Continental’s pro? ts and relief was unlikely through the foreseeable future. THE DECISION TO REDUCE FLYING CAPACITY AND THE IMPACT ON OPERATING COSTS Given the situation described above, management needed to act swiftly to restore pro? tability. Several strategic options were evaluated.Since the U. S. and much of the world was facing a severe recession, the prospect for growing revenues by either raising airfares or passenger volume seemed futile. Contrary to raising revenue, Con tinental’s managers believed that raising fares could potentially erode future revenues beyond the present level. Discounting fares did not seem a plausible solution either, because given the severity of the economic situation a fare cut could fall short in stimulating additional passenger demand and lead to lowering revenues. Thus, because management anticipated that revenues would remain ? t for most of the year, the only viable short-term solution to restoring pro? ts was a substantial and swift reduction in operating costs. This could most effectively be accomplished in two ways. First, through a reduction in ? ying capacity adjusted to match projected passenger demand. With this in mind, Continental’s management agreed to reduce ? ying capacity by 11 percent on domestic and international routes. 2 As a result of this action, Continental would eliminate the least pro? table or unpro? table ? ights and, accordingly, would ground several planes in the ? eet.Managemen t anticipated that this decision would reduce several of the ? rm’s operating costs. Apart from this, Continental could achieve further reductions in costs by implementing several cost-cutting initiatives and through operational ef? ciencies. For example, management pro- 1 2 To illustrate, jet fuel is tied to the price of oil and, over the past year, oil prices surged from about $70 to $135 per barrel. Consequently, the price of jet fuel increased markedly, from an average of $1. 77 per gallon to $4. 20 by the mid-summer of 2008. Speci? cally, on June 13, 2008, Continental Airlines announced that it planned to reduce its ? ght capacity by 11 percent. By shrinking capacity, Continental expected to reduce the number of domestic and international ? ights from its three major hubs in Houston, Cleveland, and Newark Maynard 2008 . Issues in Accounting Education American Accounting Association Volume 26, No. 1, 2011 A Case Study on Cost Estimation and Pro? tability Analysis at Conti nental Airlines 183 jected that it could achieve reductions in Passenger Services expenses by consolidating several tasks during passenger check-in and by reducing food and beverage waste served during ? ights. Additionally, the ? m could reduce various miscellaneous expenses through targeted cuts in discretionary spending. In sum, to close the gap in pro? tability, Continental’s strategy was geared toward slashing operating costs by cutting capacity and through aggressive identi? cation and implementation of cost-cutting initiatives. The next step would be for management to know precisely how their decision to downsize capacity would impact the ? rm’s future operating costs, and also identify speci? c areas in which the ? rm could achieve additional cost reductions. Additionally, the cost analysis would help forecast the ? m’s operating costs and projected pro? ts or losses for the upcoming ? scal year. However, before we can proceed with such analysis, an exam ination of how the various categories of Continental’s costs behave is in order. Before we begin, let us prepare with an overview of the airline industry and its competitive landscape, and an understanding of why cost behavior bears particular relevance in this case. Relative to other industries, airlines are a very dif? cult business to manage. In particular, they are exposed to tremendous risks brought by volatility inherent in their business model, as they deal with high ? ed costs, labor unions, instability in fuel prices, weather and natural disasters, passenger safety, and security regulations. These aspects bring a large burden to airlines’ cost structures. Moreover, competition within the industry is ? erce; the proliferation of discount carriers, such as Southwest Airlines and, most recently, Jet Blue, and the end of fare regulation in 1978, has hindered airlines’ pricing power and their ability to spur revenues. For these reasons, cost containment is a critically important aspect of pro? tability in this industry.In order for Continental to restore pro? tability in this harsh environment of weak demand for air travel, it must be able to contain its operating costs, especially its massive ? xed costs, which are visible in several ways. For example, salaries for pilots, ? ight attendants, and mechanics, as well as aircraft leasing costs, are typically ? xed, varying little with shifts in passenger volume. Because ? xed costs typically embody the amount of operating capacity of a ? rm, they are commonly referred as â€Å"capacity† costs. Since ? xed costs do not self-adjust to ? ctuations in passenger volume, the only way in which they can be decreased or increased is if management adjusts them in accordance to the level of operating capacity. In contrast, other costs, such as passenger services and reservation and distribution costs, behave as variable and would self-adjust with variations in volume or operating activity. He nce, to assess the impact of this strategic decision to alter Continental’s cost structure, and identify the areas that could achieve the greatest reduction in costs, we must resolve how Continental’s operating costs behave and what drives them.In what follows, we learn how to apply regression analyses to examine cost behavior and forecast future costs, and then use that knowledge to assess how the reduction in ? ying capacity would affect Continental’s operating costs and pro? tability in the near term. ESTIMATING COSTS USING REGRESSION ANALYSES The previous discussion highlighted the importance of examining the behavior of Continental’s operating costs to pave the way for a cost and pro? tability analysis using regression analysis. Regression analysis is a powerful statistical tool that is frequently used by ? ms to examine cost behavior and predict future costs. The idea behind regression analysis is straightforward: historical data for costs, and the various activities that could potentially drive operating costs, are inserted into a mathematical calculation which yields the average amount of change in that particular cost that has occurred over time. Average values provided by regression calculations may then be applied to estimate future change that will occur in that cost given a one-unit change in one or Issues in Accounting Education Volume 26, No. 1, 2011 American Accounting Association 184 Roman ore of the business activities which drive that cost. 3 More precisely, in a regression model, cost is a function of one or more business activities or factors underlying a business operation. Simply put, the business activities are the drivers of operating costs. Therefore, since activities drive costs, our ? rst step in the estimation of a cost function is to identify the underlying activities or other potential factors that drive the cost in question—the cost drivers. This requires extensive knowledge of the business ope ration. In the case of Continental Airlines, the potential drivers of operating costs vary greatly.For instance, as previously noted, the number of passengers that Continental ? ies may drive the costs related to Passenger Services. Likewise, Aircraft Maintenance and Repairs costs could be driven by the number of aircraft in the ? eet and by the level of ? ying capacity set by Continental i. e. , available seat miles . In synthesis, to predict how Continental’s operating costs would be affected by the decision to reduce capacity, and to identify those areas in which additional room is available for cost cutting, we need to identify which costs in this ? rm’s cost structure behave as variable, ? ed, or mixed in which elements of both variable and ? xed are observable . Equally important, we should also identify the speci? c drivers if any of each cost. Your job is to assist management in their quest to restore pro? tability at Continental Airlines. Speci? cally, you mus t conduct regression analyses to examine cost behavior and then use this information to forecast operating costs and pro? tability for the upcoming year. As part of your cost analysis, you should investigate how the decision to cut ? ying capacity would impact the ? rm’s future operating costs and, equally important, identify those speci? expense categories or operating areas in which this ? rm could attain additional costs saving by implementing cost-cutting initiatives. Your conclusions should be outlined in a memorandum directed to Continental’s Executive management team. You are provided next with a description of Continental’s operating costs and the potential drivers of costs so you can conduct regression analysis to estimate the corresponding cost functions. To help you in estimating the regressions, a comprehensive set of instructions for performing regression analysis using Microsoft Excel is provided in the Appendix.Immediately following the descriptio n of costs, a series of questions is provided that should help guide your analysis. Additionally, to help you estimate your regressions, Exhibit 1 presents past quarterly data for all of the above expenditures for the period of January 2000 through December 2008, while Exhibit 2 provides quarterly operations data for the same period of time. CONTINENTAL’S OPERATING COSTS AND POTENTIAL COST DRIVERS As shown in Exhibit 1, there are ten categories of operating costs.These include salaries and wages, aircraft fuel and related taxes, aircraft rentals, airport fees, aircraft maintenance and repairs, depreciation and amortization, distribution costs, passenger services, regional capacity purchases, and other expenses. Of these, some represent a single expense item. For example, the cost of aircraft rentals and airport fees together comprise a single cost item. Other costs represent cost pools comprising several cost items. Such is the case of passenger services and other expenses. T he following provides a detailed description of each cost, along with the potential cost drivers. 3 4 For ease in exposition, cost functions and regression analyses are discussed brie? y here. For further insight on cost functions and on the mechanics of regression analyses, I refer the reader to the Appendix. A cost driver represents a particular business activity, which usually tends to have a cause-and-effect relationship with a given cost. For example, for airlines, a typical cost driver for landing fees is the number of daily ? ights carried by the airline, as well as the number of passengers ? own. An increase decrease in the number of ? ights or passengers ? own would increase decrease landing fees.Issues in Accounting Education American Accounting Association Volume 26, No. 1, 2011 A Case Study on Cost Estimation and Pro? tability Analysis at Continental Airlines 185 EXHIBIT 1 REVENUES AND OPERATING COSTS DATA Obs. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 Obs. 1 2 3 4 5 6 Period 1Q-2000 2Q-2000 3Q-2000 4Q-2000 1Q-2001 2Q-2001 3Q-2001 4Q-2001 1Q-2002 2Q-2002 3Q-2002 4Q-2002 1Q-2003 2Q-2003 3Q-2003 4Q-2003 1Q-2004 2Q-2004 3Q-2004 4Q-2004 1Q-2005 2Q-2005 3Q-2005 4Q-2005 1Q-2006 2Q-2006 3Q-2006 4Q-2006 1Q-2007 2Q-2007 3Q-2007 4Q-2007 1Q-2008 2Q-2008 3Q-2008 Q-2008 Revenues Fuel Salaries and Wages Capacity Purchases Aircraft Rentals Landing Fees 2,277,000,000 334,000,000 672,000,000 — 206,000,000 2,571,000,000 313,000,000 719,000,000 — 210,000,000 2,622,000,000 354,000,000 748,000,000 — 215,000,000 2,429,000,000 392,000,000 736,000,000 — 213,000,000 2,451,000,000 345,000,000 758,000,000 — 214,000,000 2,556,000,000 349,000,000 800,000,000 — 223,000,000 2,223,000,000 322,000,000 779,000,000 — 230,000,000 1,739,000,000 213,000,000 684,000,000 — 236,000,000 1,993,000,000 208,000,000 732,000,000 — 228,000,000 2,192,000,000 254,000,000 746,000, 000 — 231,000,000 2,178,000,000 76,000,000 743,000,000 — 227,000,000 2,039,000,000 285,000,000 738,000,000 — 216,000,000 2,042,000,000 347,000,000 778,000,000 — 223,000,000 2,216,000,000 302,000,000 762,000,000 — 224,000,000 2,365,000,000 316,000,000 778,000,000 — 225,000,000 2,247,000,000 290,000,000 738,000,000 158,000,000 224,000,000 2,307,000,000 333,000,000 688,000,000 317,000,000 220,000,000 2,553,000,000 387,000,000 711,000,000 328,000,000 222,000,000 2,602,000,000 414,000,000 703,000,000 347,000,000 224,000,000 2,437,000,000 453,000,000 717,000,000 359,000,000 225,000,000 2,505,000,000 470,000,000 715,000,000 353,000,000 227,000,000 2,857,000,000 75,000,000 649,000,000 382,000,000 229,000,000 3,001,000,000 684,000,000 646,000,000 406,000,000 234,000,000 2,845,000,000 714,000,000 639,000,000 431,000,000 238,000,000 2,947,000,000 672,000,000 661,000,000 415,000,000 245,000,000 3,507,000,000 744,000,000 791,000,000 454,000,000 248,000,0 00 3,518,000,000 858,000,000 743,000,000 475,000,000 249,000,000 3,156,000,000 760,000,000 680,000,000 447,000,000 248,000,000 3,179,000,000 684,000,000 726,000,000 430,000,000 248,000,000 3,710,000,000 842,000,000 821,000,000 444,000,000 248,000,000 3,820,000,000 895,000,000 836,000,000 446,000,000 249,000,000 3,523,000,000 33,000,000 744,000,000 473,000,000 249,000,000 3,570,000,000 1,048,000,000 729,000,000 506,000,000 247,000,000 4,044,000,000 1,363,000,000 704,000,000 589,000,000 246,000,000 4,072,000,000 1,501,000,000 765,000,000 553,000,000 244,000,000 3,471,000,000 993,000,000 760,000,000 425,000,000 240,000,000 129,000,000 138,000,000 133,000,000 132,000,000 141,000,000 153,000,000 139,000,000 148,000,000 161,000,000 160,000,000 163,000,000 149,000,000 152,000,000 152,000,000 165,000,000 151,000,000 160,000,000 163,000,000 171,000,000 160,000,000 171,000,000 181,000,000 182,000,000 174,000,000 185,000,000 198,000,000 195,000,000 86,000,000 193,000,000 190,000,000 209,000,00 0 198,000,000 207,000,000 210,000,000 225,000,000 210,000,000 Period Distribution Costs Aircraft Maintenance Depreciation Passenger Services Other Expenses 1Q-2000 2Q-2000 3Q-2000 4Q-2000 1Q-2001 2Q-2001 248,000,000 261,000,000 255,000,000 217,000,000 243,000,000 230,000,000 159,000,000 171,000,000 167,000,000 149,000,000 160,000,000 162,000,000 95,000,000 98,000,000 102,000,000 107,000,000 105,000,000 111,000,000 85,000,000 91,000,000 97,000,000 89,000,000 91,000,000 96,000,000 286,000,000 284,000,000 288,000,000 277,000,000 318,000,000 295,000,000 (continued on next page)Issues in Accounting Education Volume 26, No. 1, 2011 American Accounting Association 186 Obs. 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 Obs. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Roman Period Distribution Costs Aircraft Maintenance Depreciation Passenger Services Other Expenses 3Q-2001 4Q-2001 1Q-2002 2Q-2002 3Q-2002 4Q-2002 1Q-2003 2Q-2003 3Q-2003 4Q-2003 1Q-2004 2Q-2004 3 Q-2004 4Q-2004 1Q-2005 2Q-2005 3Q-2005 4Q-2005 1Q-2006 2Q-2006 3Q-2006 4Q-2006 1Q-2007 2Q-2007 3Q-2007 4Q-2007 1Q-2008 2Q-2008 3Q-2008 4Q-2008 194,000,000 142,000,000 172,000,000 158,000,000 138,000,000 124,000,000 27,000,000 138,000,000 131,000,000 135,000,000 137,000,000 140,000,000 139,000,000 136,000,000 138,000,000 154,000,000 154,000,000 142,000,000 160,000,000 178,000,000 157,000,000 155,000,000 161,000,000 176,000,000 171,000,000 174,000,000 182,000,000 194,000,000 182,000,000 159,000,000 142,000,000 104,000,000 114,000,000 119,000,000 119,000,000 124,000,000 133,000,000 126,000,000 135,000,000 115,000,000 112,000,000 102,000,000 107,000,000 93,000,000 112,000,000 106,000,000 116,000,000 121,000,000 127,000,000 140,000,000 140,000,000 140,000,000 144,000,000 169,000,000 166,000,000 142,000,000 159,000,000 167,000,000 52,000,000 135,000,000 120,000,000 131,000,000 106,000,000 112,000,000 112,000,000 114,000,000 116,000,000 110,000,000 110,000,000 108,000,000 104,000,000 105,0 00,000 104,000,000 102,000,000 99,000,000 98,000,000 97,000,000 95,000,000 96,000,000 97,000,000 99,000,000 99,000,000 99,000,000 101,000,000 106,000,000 107,000,000 106,000,000 108,000,000 112,000,000 111,000,000 89,000,000 71,000,000 77,000,000 73,000,000 78,000,000 68,000,000 70,000,000 73,000,000 81,000,000 73,000,000 69,000,000 76,000,000 84,000,000 77,000,000 77,000,000 84,000,000 91,000,000 80,000,000 82,000,000 90,000,000 97,000,000 87,000,000 90,000,000 9,000,000 105,000,000 95,000,000 96,000,000 107,000,000 113,000,000 91,000,000 121,000,000 166,000,000 382,000,000 454,000,000 276,000,000 277,000,000 320,000,000 91,000,000 250,000,000 455,000,000 304,000,000 279,000,000 287,000,000 278,000,000 316,000,000 280,000,000 282,000,000 305,000,000 293,000,000 323,000,000 313,000,000 333,000,000 340,000,000 357,000,000 357,000,000 328,000,000 356,000,000 427,000,000 461,000,000 372,000,000 Period Total Aircraft 1Q-2000 2Q-2000 3Q-2000 4Q-2000 1Q-2001 2Q-2001 3Q-2001 4Q-2001 1Q-200 2 2Q-2002 3Q-2002 4Q-2002 1Q-2003 2Q-2003 514 522 535 522 548 557 501 522 538 570 570 554 562 70 OPERATIONS AND COST DRIVER DATA Leased Aircraft Flights Passengers Available Seat Miles 403 410 414 398 406 416 377 393 400 404 401 410 419 428 98,820 97,871 97,967 98,378 98,590 99,018 98,564 81,109 81,883 82,815 81,737 78,809 75,178 75,617 11,201,000 12,084,000 12,155,000 11,456,000 11,220,000 12,256,000 11,254,000 9,508,000 12,062,000 13,099,000 13,006,000 12,874,000 11,518,000 13,044,000 20,951,000,000 21,384,000,000 22,356,000,000 21,409,000,000 21,459,000,000 22,813,000,000 21,994,000,000 18,219,000,000 20,375,000,000 22,286,000,000 22,626,000,000 21,054,000,000 20,843,000,000 21,241,000,000 Available SeatMiles Regional — — — — — — — — — — — — 1,767,000,000 2,073,000,000 (continued on next page) Issues in Accounting Education American Accounting Association Volume 26, No. 1, 2011 A Case Study on Cos t Estimation and Pro? tability Analysis at Continental Airlines Obs. 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 Obs. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Period Total Aircraft 3Q-2003 4Q-2003 1Q-2004 2Q-2004 3Q-2004 4Q-2004 1Q-2005 2Q-2005 3Q-2005 4Q-2005 1Q-2006 2Q-2006 3Q-2006 4Q-2006 1Q-2007 2Q-2007 3Q-2007 4Q-2007 1Q-2008 2Q-2008 3Q-2008 4Q-2008 187 OPERATIONS AND COST DRIVER DATALeased Aircraft Flights Passengers Available Seat Miles 570 579 586 587 592 594 598 604 611 622 630 634 648 648 630 625 631 628 641 630 653 632 428 434 437 440 445 448 453 459 466 477 483 484 482 480 446 418 415 415 414 390 412 397 76,297 75,650 74,859 75,816 74,211 74,443 71,494 74,651 74,630 75,886 74,962 77,729 77,468 79,030 78,601 82,582 81,118 80,850 76,719 76,096 78,599 76,000 Available Seat Miles Regional 13,727,000 13,769,000 12,810,000 14,558,000 14,862,000 14,252,000 14,122,000 15,540,000 15,905,000 15,448,000 15,594,000 17,596,000 17,328,000 16,601,0 00 16,176,000 18,120,000 17,901,000 16,733,000 16,440,000 7,108,000 17,962,000 15,183,000 22,819,000,000 21,907,000,000 22,670,000,000 24,150,000,000 24,674,000,000 23,588,000,000 23,585,000,000 25,482,000,000 26,833,000,000 25,720,000,000 26,117,000,000 28,259,000,000 29,262,000,000 27,280,000,000 27,250,000,000 29,592,000,000 30,346,000,000 28,550,000,000 28,376,000,000 30,304,000,000 30,383,000,000 26,448,000,000 1,605,000,000 2,980,000,000 2,400,000,000 2,603,000,000 1,999,000,000 3,408,000,000 2,740,000,000 3,026,000,000 3,112,000,000 3,095,000,000 3,082,000,000 3,374,000,000 3,503,000,000 3,292,000,000 3,126,000,000 3,177,000,000 3,193,000,000 3,104,000,000 3,098,000,000 ,450,000,000 3,390,000,000 3,046,000,000 Period Passenger Miles Flown Employees Fuel Price Fuel Consumed 1Q-2000 2Q-2000 3Q-2000 4Q-2000 1Q-2001 2Q-2001 3Q-2001 4Q-2001 1Q-2002 2Q-2002 3Q-2002 4Q-2002 1Q-2003 2Q-2003 3Q-2003 4Q-2003 1Q-2004 2Q-2004 3Q-2004 4Q-2004 1Q-2005 2Q-2005 15,005,000,000 16,491,000,000 17,325,000,000 15,340,000,000 15,114,000,000 17,053,000,000 16,206,000,000 12,767,000,000 14,867,000,000 16,489,000,000 16,960,000,000 17,252,000,000 14,352,000,000 16,129,000,000 18,041,000,000 16,412,000,000 16,255,000,000 18,735,000,000 19,922,000,000 18,239,000,000 18,112,000,000 20,292,000,000 45,000 45,500 46,000 5,944 38,396 39,000 39,500 39,461 40,229 41,011 41,809 40,244 38,960 39,000 39,500 39,000 38,240 37,496 36,766 38,255 41,831 45,742 $0. 829 $0. 797 $0. 865 $0. 885 $0. 856 $0. 815 $0. 824 $0. 826 $0. 644 $0. 723 $0. 760 $0. 740 $1. 029 $0. 881 $0. 857 $0. 872 $1. 041 $1. 787 $1. 199 $1. 190 $1. 453 $1. 670 377,000,000 386,000,000 398,000,000 372,000,000 369,000,000 391,000,000 373,000,000 369,000,000 308,000,000 332,000,000 340,000,000 316,000,000 305,000,000 308,000,000 330,000,000 314,000,000 320,000,000 347,000,000 345,000,000 321,000,000 324,000,000 344,000,000 (continued on next page) Issues in Accounting EducationVolume 26, No. 1, 2011 American Accounting Associ ation 188 Roman Period 23 24 25 26 27 28 29 30 31 32 33 34 35 36 Passenger Miles Flown Employees Fuel Price Fuel Consumed 3Q-2005 4Q-2005 1Q-2006 2Q-2006 3Q-2006 4Q-2006 1Q-2007 2Q-2007 3Q-2007 4Q-2007 1Q-2008 2Q-2008 3Q-2008 4Q-2008 Obs. 21,762,000,000 20,033,000,000 20,336,000,000 23,367,000,000 24,042,000,000 21,772,000,000 21,450,000,000 24,623,000,000 25,422,000,000 22,670,000,000 22,280,000,000 24,836,000,000 24,746,000,000 20,825,000,000 50,018 42,200 42,600 43,450 41,500 38,033 41,800 43,300 41,400 39,640 43,000 40,100 43,500 42,490 $1. 880 $1. 776 $1. 904 $2. 10 $2. 215 $2. 064 $1. 895 $2. 079 $2. 206 $2. 499 $2. 797 $3. 856 $3. 450 $2. 925 364,000,000 344,000,000 347,000,000 375,000,000 387,000,000 362,000,000 361,000,000 395,000,000 406,000,000 380,000,000 375,000,000 389,000,000 395,000,000 339,000,000 EXHIBIT 2 PROJECTIONS OF REVENUES AND OPERATING ACTIVITY FOR YEAR 2009 Variable Revenues Available seat miles Available regional seat miles Number of passengers Number of planes Number leased planes Price of fuel per gallon Gallons of fuel consumed Quarter 1 Quarter 2 Quarter 3 Quarter 4 $2,962,000,000 26,323,000,000 2,971,000,000 14,408,000 634 398 $1. 82 403,000,000 2,767,000,000 28,007,000,000 3,044,000,000 16,348,000 617 394 $2. 07 430,000,000 $2,947,000,000 28,933,000,000 3,130,000,000 16,795,000 604 380 $1. 99 369,000,000 $2,462,000,000 26,291,000,000 3,002,000,000 15,258,000 601 379 $1. 98 479,000,000 All ? nancial and operational data represent quarterly data for the quarter beginning January 2000 Observation 1 through December 2008. Data have been compiled from Continental’s 8-K and10-K reports, submitted to the Securities and Exchange Commission. De? nitions of Operations Variables: Available seat miles the number of seats available multiplied by the number of miles ? wn; Available regional seat miles available seat miles on regional routes; Number of passengers number of paying passengers ? own; Number of planes number of planes in the ? eet, including regional routes aircraft; Number of leased planes number of leased planes; Price of jet fuel average price per gallon of jet fuel in the respective quarter; and Gallons of fuel consumed number of gallons of fuel consumed in the respective quarter. Salaries and Wages This account represents costs related to salaries and wages, as well as fringe bene? ts, of Continental’s workers. These include salaries for pilots and wages for ? ght attendants and ground crew, as well as wages for Continental’s mechanics. Additionally, a signi? cant portion of this salary pool represents wages of reservation specialists, customer service representatives at airports, and the salaries for administrative and support personnel e. g. , ? ight schedulers, technology Issues in Accounting Education American Accounting Association Volume 26, No. 1, 2011 A Case Study on Cost Estimation and Pro? tability Analysis at Continental Airlines 189 personnel, accountants, and division managers . A possible cost driver of salaries is the available seat miles. Aircraft Fuel and Related Taxes This represents the cost of jet fuel and related fuel taxes. Jet fuel cost tends to be driven by the current price of jet fuel and gallons of jet fuel consumed. Aircraft Rentals These are expenses for capital leases of aircraft. The main driver is the number of leased planes in Continental’s ? eet, including regional jets operated on behalf of Continental by four regional airlines under various capacity purchase agreements. Airport Fees Represents landing fees and passenger security fees paid to the various domestic and international airports where Continental ? ies.Landing fees are driven by the number of passengers. Aircraft Maintenance and Repairs These are expenses associated with the service and maintenance of planes. These include expenses related to scheduled maintenance, spare parts and materials, and airframe and engine overhauls. The main drivers of these cost s are the number of planes in the ? eet and the number of miles ? own. Depreciation and Amortization This represents depreciation and amortization expenses of aircraft, ground equipment, buildings, and other property. It must be emphasized that the largest portion of depreciation expense relates to the depreciation of aircraft.Although depreciation expenses are driven by the acquisition cost of Continental’s capital assets, depreciation is greatly in? uenced by both company policy and accounting principles, such as the depreciation method, that a ? rm adopts. Distribution Costs These expenses represent credit card discount fees, booking fees, and travel agency commissions, all of which are affected by passenger revenue. Therefore, the driver of these costs is total revenue. Passenger Services This is also a cost pool that includes expenses related to processing and servicing passengers prior to take-off, during ? ight, and after arrival at their destination.A signi? cant port ion of these costs is generated by Continental’s Field Services Division, the main function of which is to provide service to planes prior to take-off. Some of these expenses relate to checking in passengers, handling luggage on and off planes, cleaning planes, stocking planes with beverage and food, and refueling the aircraft prior to take-off. The potential cost driver of these costs is the number of passengers. Regional Capacity Purchases These are costs related to the purchase of regional routes served by several regional airlines on behalf of Continental ExpressJet, Chautauqua, CommutAir, and Cogan .These costs are 5 Available seat miles is calculated as the number of seats available for passengers multiplied by the number of scheduled miles those seats are ? own. Issues in Accounting Education Volume 26, No. 1, 2011 American Accounting Association 190 Roman driven by the combined ? ying capacity of the four airlines: available regional seat miles. Other Expenses This is a cost pool that comprises many ancillary and discretionary expenditures, including technology expenses, security and outside services, general supplies, and advertising and promotional expenses.Further, this cost pool contains various special charges for gains and losses from the sale of retired aircraft and costs of future leases. Given the large variety of miscellaneous items, there is no clear driver of these expenses; however, a large portion of them, such as advertising and promotional expenses, are driven by total revenue. DISCUSSION QUESTIONS 1. 2. 3. 4. 5. 6 Using the quarterly data for operating costs and the various cost drivers of costs provided by Exhibits 1 and 2, estimate regression for cost category of costs.Then, write the appropriate cost function for each category of cost and then interpret your regression results. Based on your regression results, where do you see the largest reductions in costs if ? ying capacity is lowered by 11 percent? Also, in which areas d o you see opportunities to achieve further cost reductions and why? Exhibit 2 provides a quarterly forecast of revenues, jet fuel prices,6 and the projected operating activity for 2009. Using the information from your regressions and the forecast information provided in Exhibit 2, estimate Continental’s operating costs and expected pro? for the upcoming ? scal year. Based on the results of your pro? tability analysis, what can you say about the ? rm’s ? nancial outlook? Would Continental be earning an operating pro? t in 2009? If not, what should Continental’s management do to restore pro? tability in 2009? Summarize your conclusions in a memorandum addressed to Continental’s CEO. In the memo, you must clearly communicate your main ? ndings, emphasizing speci? c areas in which you see the greatest potential to achieve further reductions in costs and, based on your pro? tability analysis, sum up the ? nancial outlook for 2009.You should note that Continent al has entered into several future contracts to hedge the exposed risks of rising fuel prices. The projected costs for jet fuel on exhibit re? ects the value of the various future contracts which guarantee Continental a ? xed price for jet fuel at various maturity dates in 2009, as well the estimated gallons of fuel that Continental plans to use during the year. Issues in Accounting Education American Accounting Association Volume 26, No. 1, 2011 A Case Study on Cost Estimation and Pro? tability Analysis at Continental Airlines 191 CASE LEARNING OBJECTIVES AND IMPLEMENTATION GUIDANCECost estimation is a fundamental aspect of managerial/cost accounting Datar et al. 2008; Eldenburg and Wolcott 2005 . For example, cost estimation is critical for developing budgets, setting up cost standards, inventory valuation, product costing, and many other applications. Ultimately, ? rms’ ability to accurately predict production and operating costs has a profound impact on decision-making. A dditionally, given the frequency with which ? rms downsize or expand their operations in response to economic or market-wide conditions, knowing how this strategic decision of scaling output impacts ? ms’ future operating costs, and which tools can facilitate this task, has become increasingly relevant for ? rms. Nonetheless, despite its importance, cost estimation is a topic that merits further discussion in accounting textbooks. Although several managerial/cost accounting textbooks provide rich theoretical discussions of cost estimation, including cost behavior, cost functions, and, to some extent, regression analyses, the examples that are typically used to illustrate such an important concept often lack a sense of realism. Either ? titious data are commonly used in cost estimation, or the examples covered fail to capture realistic situations faced by ? rms in a â€Å"real world† context. Accordingly, this case aims to close this gap. The objective is to support stu dents in learning how to apply regression analyses to understand cost behavior and forecast future costs using real data from ? rms. The case focuses on the harsh ? nancial situation faced by Continental Airlines as a result of the recent ? nancial crisis and the challenges it faces to remain pro? table.It then highlights the importance of reducing and controlling costs as a viable strategy to restore pro? tability, and how regression analysis can assist in this pursuit. Students are next presented with quarterly data for various categories of costs and several potential cost drivers, which they must analyze and then perform regressions on operating costs using a variety of cost drivers. Based on these results, students have to examine how costs behave and then use the regression output to forecast the ? rm’s operating costs for year 2009. As part of the cost analysis, students must also identify speci? areas in which Continental could achieve the largest cost savings as a re sult of cutting capacity and implementing other cost-cutting measures. Apart from this, they must conduct a pro? tability analysis to project quarterly pro? ts for the upcoming ? scal year. The learning objectives of the case are as follows: 1. 2. 3. Students learn to conduct regression analysis in Excel and use this technique to study cost behavior and forecast future costs. Students also learn how to use actual ? rm-level data from public sources for estimating costs, and apply cost estimation in a â€Å"real world† context that involves a widespread decision among ? ms: downsizing capacity. Moreover, learning to use public ? nancial information in cost estimation could have implications that reach beyond accounting; learning to access public ? nancial information exposes students to the possibilities of applying regression analysis for business analysis in general, including cost and pro? tability analyses. The case requires students to synthesize their ? ndings in a memor andum addressed to Continental’s CEO; thus, students are also exposed to re? ning their writing skills in a business setting. Implementation GuidanceThis case is primarily designed for use in an intermediate managerial/cost accounting undergraduate class; however, it could also work well in a graduate-level managerial accounting course, at either the master’s level or M. B. A. Issues in Accounting Education Volume 26, No. 1, 2011 American Accounting Association 192 Roman The realistic nature of the setting everyone can easily identify with the business model of airlines makes a particularly appealing environment for students to learn how regression analyses can be applied in cost estimation in a real-world context.The questions presented in the case include both practical and theoretical questions. As an augmentation of the principles contained in the application of this case, instructors could enhance the student experience by devoting time to reviewing the concepts o f cost functions and cost estimation, as well as discussing the fundamentals of regression analyses, so students can be exposed to these concepts prior to receiving the case. Alternatively, students can review these concepts on their own.The Appendix provides a detailed explanation of cost functions and regression analysis and describes the steps to perform regression analysis in Excel. Additionally, it provides students with broad guidelines to write an effective memorandum. Student Feedback The case was administered to two sections of an upper-level intermediate undergraduate cost accounting class at a major U. S. university. Seventy-seven students responded to an evaluation survey to assess whether they improved their understanding of the concepts illustrated in the case, as well as to whether the case illustrated a â€Å"real world† application in predicting operating costs.As shown in Table 1, students agreed that the case enhanced their understanding of the use of regre ssion analyses in predicting future costs mean of 4. 17, based on a ? ve-point scale , the case encouraged them to think critically about the behavior of operating costs in a â€Å"real world† context mean of 4. 03, based on a ? ve-point scale ; plus, they found the case interesting and recommended it for use in teaching cost estimation via regression analyses mean of 4. 07, based on a ? ve-point scale; see also Table 2 . Similar positive responses are shown in Table 2. For example, Table 2 reports students’ knowledge on the use of regression