What Are Lipids and What Do They Do

Lipids are class of naturally-occurring organic compounds that you may know by their common names: fats and oils. A key characteristic of this group of compounds is that they are not soluble in water. Heres a look at the function, structure, and physical properties of lipids. Fast Facts: Lipids A lipid is any biological molecule that is soluble in nonpolar solvents.Lipids include fats, waxes, fat-soluble vitamins, sterols, and glycerides.Biological functions of lipids include energy storage, cell membrane structural components, and signaling. Lipids in Chemistry, a Definition A lipid is a fat-soluble molecule. To put it another way, lipids are insoluble in water but soluble in at least one organic solvent. The other major classes of organic compounds (nucleic acids, proteins, and carbohydrates) are much more soluble in water than in an organic solvent. Lipids are hydrocarbons (molecules consisting of hydrogen and oxygen), but they do not share a common molecule structure. Lipids that contain an ester functional group may be hydrolyzed in water. Waxes, glycolipids, phospholipids, and neutral waxes are hydrolyzable lipids. Lipids that lack this functional group are considered nonhydrolyzable. The nonhydrolyzable lipids include steroids and the fat soluble vitamins A, D, E, and K. Examples of Common Lipids There are many different types of lipids. Examples of common lipids include butter, vegetable oil, cholesterol and other steroids, waxes, phospholipids, and fat-soluble vitamins. The common characteristic of all of these compounds is that they are essentially insoluble in water, yet soluble in one or more organic solvents. What Are the Functions of Lipids? Lipids are used by organisms for energy storage, as a signalling molecule (e.g., steroid hormones), as intracellular messengers, and as a structural component of cell membranes. The fat-soluble vitamins (A, D, E, and K) are isoprene-based lipids that are stored in the liver and fat. Some types of lipids must be obtained from the diet, while others can be synthesized within the body. The types of lipids found in food include plant and animal triglycerides, sterols, and membrane phospholipids (e.g., cholesterol). Other lipids may be produced from carbohydrates from the diet via a process called lipogenesis. Lipid Structure Although there is no single common structure for lipids, the most commonly occurring class of lipids are triglycerides, which are fats and oils. Trigylcerides have a glycerol backbone bonded to three fatty acids. If the three fatty acids are identical then the triglyceride is termed a simple triglyceride. Otherwise, the triglyceride is called a mixed triglyceride. Fats are triglycerides that are solid or semisolid at room temperature. Oils are triglycerides that are liquid at room temperature. Fats are more common in animals, while oils are prevalent in plants and fish. The second most abundant class of lipids are the phospholipids, which are found in animal and plant cell membranes. Phospholipids also contain glycerol and fatty acids, plus the contain phosphoric acid and a low-molecular-weight alcohol. Common phospholipids include lecithins and cephalins. Saturated Versus Unsaturated Fatty acids that have no carbon-carbon double bonds are saturated. These saturated fats are commonly found in animals and are usually solids. If one or more double bond is present, the fat is unsaturated. If only one double bond is present, the molecule is monounsaturated. The presence of two or more double bonds makes a fat polyunsaturated. Unsaturated fats are most often derived from plants. Many are liquids because the double bonds prevent efficient packing of multiple molecules. The boiling point of an unsaturated fat is lower than the boiling point of the corresponding saturated fat. Lipids and Obesity Obesity occurs when there is an excess of stored lipids (fat). While a few studies have linked fat consumption to diabetes and obesity, the vast majority of research suggests there is no link between dietary fat and obesity, heart disease, or cancer. Rather, weight gain is a consequence of excess consumption of any type of food, combined with metabolic factors. Sources Bloor, W. R. Outline of a classification of the lipoids. Sage Journals, March 1, 1920. Jones, Maitland. Organic Chemistry. 2nd Edition, W W Norton Co Inc (Np), August 2000. Leray, Claude. Lipids Nutrition and Health. 1st Edition, CRC Press, November 5, 2014, Boca Raton. Ridgway, Neale. Biochemistry of Lipids, Lipoproteins and Membranes. 6th Edition, Elsevier Science, October 6, 2015.

Racial Segregation And The American Civil War - 945 Words

Jim Crow Most of the historians had a belief that the end of American civil war brought with it recommendable changes as far as racism was concerned. This was not possible as there were white Americans who were conservatives and could not let go the racial discrimination, which they believed was the best order of life. The whites they maintained white supremacy by drafting Jim Crow law designed to separate white and black Americans. Jim Crow also consisted of societal behaviors all with the intension of making blacks inferior .Due to the laws and behaviors, African Americans following the Civil War faced economic, social and racial hardships. This was racial segregation regulations which were enacted between 1897 and mid-1960’s in the United States of America; these laws were meant to operate both locally and national with the same strength (Chafe et al. 22). They forced racial segregation in all public utilities. These laws stipulated a state of equality, but separation of t he Americans with the African descent, these laws led to the creation of belief that the African Americans were inferior compared to their white counterparts who viewed themselves to be the superior race and to a greater stretch more important (Chafe et al. 35). Mainly applied in the southern states this de jure system led to a number of disadvantages to the African American fraternity ranging from social, economic and political. On the Northern side, there was a de facto system. The discriminationShow MoreRelatedThe War For Equality During The 20th Century1218 Words   |  5 PagesThe War for Equality The first half of the Twentieth century witnessed both WWI and WWII and another war as well; the War for Equality. With a racism and persecution at a high level, racial minorities were ready to fight back. 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Racial Healthcare Disparities free essay sample

Incarceration Disparities that Create Health Problems Name Course Institution Instructor’s name Date due Abstract Shocking disparities in population wellness and health in the United States of America have led to multidisciplinary study efforts to help build health equity. Identifying disparities, clarifying the etiological bases of disparities as well as adopting solutions to get rid of health disparities are part of the United States national health program. Ethnic and racial disparities have been acknowledged throughout the cancer prevention continuum in cardiovascular diseases, diabetes as well as other diseases. The causes of these ethnic and racial disparities are multifaceted, condition specific as well as assumed to result from combinations of socio-behavioral and biological factors. Ethnic and racial health disparities in the immense imprisoned communities have been barred from studies, yet are of significant fiscal and ethical concerns to prisoners, governing bodies as well as non-imprisoned communities into which the prisoners return. Considerably research on ethnic and racial disparities in this distinctive population may help explain the comparative etiologies of health disparities as well as the solutions for developing health equity throughout the entire American population. This study particularly focuses on African Americans who are disproportionately affected by the penal system. Even though prisoners generally suffer from poor health than similar, non-institutionalized adults, it has also been noted that some of the negative effects arise after inmates are released. This clearly shows that the challenges of reintegration into the society are as significant as the conditions of imprisonment. Imprisonment- health relationship is reviewed at an individual as well as at an aggregate level. Keywords: Health, Incarceration, Racial, Ethnic Disparities, Infectious Disease and Stigma Introduction Incarceration and Racial Health Disparities Overview There has been a speedy expansion of the correctional scheme which has been viewed as one of the important and remarkable trends in modern American society. By the year 2004, there were an estimated six times more ex-inmates and inmates than in the 1970s. According to Uggen, Manza and Thomson (2006), currently there more than 16 million felons as well as ex-felons in America. Although every racial group in the United States is affected, the rapid expansion has unreasonably affected a variety of subgroups of the population particularly African American males. In 2002, an estimated 12 percent of African American males were in correctional facilities across the United States (Harrison Karberg, 2003). The lifetime cumulative peril of incarceration of all African American males is more than 20%. Among black males with no high school diploma, the lifetime peril is 58. 9%. While stunningly high, these projections are five times higher than that of the Caucasians. In light of this fast expansion, some observers have reflected on the impacts of increasing size as well as ethnic composition of the correctional facilities. There is a broad as well as increasing literature on how felony and reprimand impact later life outcomes and chances. Research has constantly shown that incarceration significantly lowers the possibility of getting gainful employment, lowers wages in the case of employment and interrupts marital stability (Thomas, James Elizabeth, 2006). It is quite apparent that the rapid expansion of correctional facilities excessively affects minorities. According to Pager (2003), criminal record is more injurious to the employment prospects of African American than whites. Numerous studies reach comparable conclusions that correctional facility unreasonably impacts on the marriage in African-American communities. Problem Statement According to Roberts (2004), although the African American male population comprises only 13% of the entire United States male population, out of the 2. 6 million Americans who are imprisoned, 43% (one million) are African American males. In other words 90 out of every 1000 males in America will be imprisoned in their lifetimes. If this data is broken down by race, only 4%, that is 44 white males will be incarcerated while 28. 5% (285) African American males will be imprisoned. According to Harrison and Paige (2003), one in every three African American male will be incarcerated during their life. Incarcerated African-American males suffer from health issues worse than other incarcerated individuals. When released, these men meet struggles that other ethnic groups don’t have to face. Since African Americans are imprisoned at rates higher than any other ethnic or racial group, the collateral effects of incarcerations heavily affects them, their families and children. The impact of imprisonment on African American men has stigmatizing collateral effects that restrict their capacity to get medical care, proper housing, financial assistance, employment and even participate in political process. Not only do these difficulties have a direct implication on their socioeconomic and health status of their families, children as well as communities but also aggravate the repercussion of health disparities already apparent in the society and undoubtedly have serious effect on the well-being and health of the criminal, their family and the society at large. Black males who are incarcerated or are ex-inmates suffer from mental illness, substance abuse, chronic and infectious diseases more than any other race. These problems add a financial damage to the family of the ex-inmate as they are in poor health and may not be in a position to seek employment therefore perpetuating a cycle of poverty in the family. Importance of the Proposed Study Although there has been a lot of research that has examined numerous consequences of imprisonment, there has been very little attempt to evaluate the health impacts of incarceration or the likely contribution of imprisonment to racial disparities in health. The existing research on this subject has been limited to the implications of prisons on health outcomes for instance depression, suicide and coping (Maruna 2005). Other studies have considered the association between health and more short-lived contact with the justice structure for example arrests. To the degree that some of the health effects are apparent among these all-encompassing types of criminal behavior as well as functions, there is a justification to examine the relationship between more challenging forms of correctional intervention as well as health. This research evaluated the relationship between correctional system and health by intensively testing the long-term impacts of incarceration on health performance. Further, this study merges other studies on the collateral implications of incarceration with work on ethnic health disparities to evaluate if the correctional system adds to inequalities in health. This study details the empirical and theoretical linkages indicative of a relationship between incarceration and health considering factors such as dramatic life events, exposure to stress as well as the neighborhood health practice. The wellness and health of the American community draw out fiscal and multi-tiered concerns and impact multiple communities including criminals themselves as well as the communities into which they are released. Researching the ethnic and health disparities in incarceration facilities will help serve as a model for expounding the determinants of disparities as well as developing results applicable to health impartiality in non-incarcerated settings. Literature Review Patterns of Incarceration The incarceration system has rapidly grown over the last three decades, haracterized by an increasing flow and stock. Before the mid-1970s, the incarceration rate oscillated in a narrow range of about 100 imprisonments in every 100,000 people. However, in 1973, the incarceration rate began to increase sharply at a rate of 6% every year and had passed the 500 incarcerations in every 100,000 in the first decade (Glaze Bonczar, 2007). According to Uggen et al. (2006), by 2004 more than 2. 4 millio n parolees and prisoners were under correction and an extra four million ex-prisoners were in the American population. Combining the current inmates and ex-inmates figures over six million American citizens have served their time in prison which represents approximately 2. 9% of the entire adult population and 5. 5% of the adult male population as well as 17% of the black male population. For anyone concerned about health, the occurrence of racial mass imprisonment has two significant features. One the incarceration system is in fact crowded in the sense that it is currently large enough to affect the whole demographic group not just a small group of people (Garland, 2009). Additionally, the type of current and ex-inmates has attributes of a status group as opposed to a caste or class, meaning that ex-inmates share a negative record that severely affects their lifetime irrespective of their race or ethnicity. These factors are very important in understanding how imprisonment affects the health of the prisoners and society. They propose that the health risks of imprisonment are essential in the sense that they may be associated to health via an array of different mechanisms. The Health of Inmates Statistics reveals that the current inmates undoubtedly have prominent levels of illness, particularly given their fairly young age. Although estimates vary among different studies, it is quite clear that inmates report higher levels of chronic illness. According to a report by the National Commission on Correctional Health Care (2002), an estimated 18% of prisons have hepatitis C, while 7% suffer from tuberculosis. These rates are generally higher than in the entire United States population. Likewise, approximately 15% of the prisoners have HIV although this percentage is declining just like in the entire American population. Other common health problems include asthma at 8. 5%, hypertension at 18. 3%, and diabetes at 4. 8%. Other reports have disclosed that prisoners have a lower level of obesity. It is also noted that ethnic and racial disparities are lesser in jails and prisons than in the general American population. However, chronic diseases are in general quite common among inmates; approximately 44% have a chronic medical condition of some kind. Inmates also suffer higher levels of mental illness; federal inmates for instance have a higher level of schizophrenia, bipolar disorder and dysthymia. Given the fact that most of the prisoners are from poor backgrounds, the quality of service availed to them before imprisonment was low which is probably reflected on their mortality rate. According to Patterson (2010), the mortality of the African American men is lower than that of those outside the incarceration facilities. He further argues that incarceration facilities play some role in provision of health care, he adds that inmates recommence treatments while in the incarceration facility that may have earlier failed before imprisonment. Moreover at least 70% of the inmates with a medical condition report seeing a health professional while in prison (Smedle, et al. , 2003). Methodology The main objective of this study is to investigate racial incarceration disparities that create health problems. Both qualitative and quantitative research methods will be used as they allow accurate analysis and prediction, quantitative method is more suitable when the issues being investigated are known. The main advantages of using quantitative and qualitative research methods are that findings are statistically reliable and the findings are projectable to the population. While selecting an appropriate methodology for this study, the pros and cons of different methodologies were considered. Data Collection The researcher intends to employ both primary and secondary methods of data collection. Secondary data will be collected from journals, books and other publications on this subject while primary data will majorly be collected through closed questionnaires and interviews. A questionnaire is a self-report form of data collection instrument whereby each respondent fills it out as part of the study. Researchers commonly use questionnaires to measure certain characteristics such as beliefs, values, perceptions attitudes and behavioral intentions of the research participants. The questions, whether verbal or non-verbal, communicate inquiry. A closed ended questionnaire is one in which the participants are offered pre-designed replies such as true or false, yes or no, multiple choice or given a chance to choose from choice of numbers representing attitude or strength of feeling. Closed questionnaires are most likely the most popular data collection tools. Their popularity is as a result of: data analysis of closed questions is simple because questions can be coded fast, the inflow of data is fast and from several people, they are cheaper and are also easy for respondents to fill out and the participants anonymity is assured. Sample Population and Data Analysis The sample population is basically inmates in the American jails and prisons who are over 18 years. The researcher intends to sample a population of 500 inmates across the United States in both federal and state incarceration facilities. The independent variables in the study will include race, gender, educational level, family status and parents. Rigorous analysis will be conducted to ascertain the incarceration-health relationship. Regression data analysis method will be used to determine the correlation between health and incarceration. Demographic data will be presented graphically in pie charts and bar graphs. Descriptive statistics for instance standard deviations and mean will be used try and understand the incarceration and racial health disparities. Proposal Review Research Strengths and Limitations Numerous characteristics of penal settings provide methodological strengths as well as limitations that should be taken into account when designing disparities studies in the penal system. One of the advantages of this research is that the corrections departments use surveys to help meet the daily needs of the prisoners. The record includes work history, health situation, education, addresses as well as the felony committed. These records may offer useful contextual information linked to health disparities, prisoners’ health as well as health etiologies. Health care information includes laboratory tests, process and results are outlined in medical reports in the incarceration facilities. As opposed to the non-imprisoned individuals, the records of prisoners are maintained as single, all-inclusive records stored in a single place. This provides a methodological strength in case finding the occurrences and likely health and wellness disparities. Correctional facilities keep dietary logs of all its inmates which provide another key strength for his study. All the meals provided to the prisoners are documented thus self-reported dietary intake can be dependably supported by the correctional facilities menus as well as canteens report. Inmates exercises are monitored by the correctional facilities staff, hence self-reported physical fitness level can be easily compared to the general population. Lastly follow up studies as well as interventions are viable and practical in a penal system setting. As opposed to non-incarcerated settings, the duration of study of an inmate can be speculated and the location noted Despite the numerous advantages of the questionnaire methodology, it still has certain shortcomings in data collections. To start with, there is little chance for the researcher to check the truthfulness of the answers given by the participants. Another limitation is that pre-coding questions could bias the results towards the researcher as opposed to the participant’s perspective. Pre-coding questions can be frustrating and restricting for the participants and therefore deterring them answering. Other limitations that the researcher faces include resources such as time and money required carrying out the research. Time and money limitations could results to poor research as the required data may not be collected. Other limitations to the use of incarcerated population in this type of study include reading level of inmates, facility restrictions as well as health care variability. These limitations can however, be addressed via thorough studies and understanding of the identified correctional facilities. Security restrictions vary from one correctional facility to the other, thus the researcher must be familiar with the resources and tools such as writing materials and computers that are permitted within the facilities the researcher intends to conduct this study. The ability to accommodate researchers also varies from one institution to the other as some institution may not allow the researcher to conduct interviews. Correctional facilities services such as exercises and dietary provision must be taken into account when considering the usability of lifestyle surveys. Most of these services are limited and may not be relevant to the lives of prisoners, lifestyle surveys tools specific to inmates have not been used or validated. Prisoners’ educational level varies from one facility to the other and in most cases is only assessed at admission. If the prisoners’ reading level is lower that of the intended survey tool, this may pose a serious challenge to the researcher. Although prisoners in all correctional facilities have the right to all-inclusive health care, facilities vary in scope of health services and standard of health care provided to the inmates. Clinical procedures including testing, screening and examination for chronic health conditions and treatment procedures vary among correctional facilities and should be taken into account when examining and extrapolating inmates’ health information. Penal systems provide numerous methodological strengths and limitations that can be overcome in the study design. Studies within penal facilities should be carried out in a manner thoughtful of the challenges prisons staff undergo and more so via partnership and collaboration with correctional facilities department. References Glaze, Lauren E. and Thomas P. Bonczar (2007). Probation and Parole in the United States,2006. Washington, DC: Bureau of Justice Statistics. Harrison, Paige, Jennifer Karberg (2003) ‘‘Prison and Jail Inmates at Midyear 2002. ’’ Bureau of Justice Statistics Bulletin, NCJ 198877. Washington, DC: U. S. Department of Justice. National Commission on Correctional Health Care (2002). The Health Status of Soon-To-Be Released Inmates. Washington, DC: National Commission on Correctional Health Care. Pager, Devah (2003). The Mark of a Criminal Record. American Journal of Sociology, 108: 937–75. Patterson, Evelyn (2010). An Analysis of Mortality in United States’ State Correctional Facilities, 1985–98. Unpublished Manuscript, Department of Sociology, The Pennsylvania State University. Robert, Stephanie (1999) ‘‘Socioeconomic Position and Health: The Independent Contribution of Community Socioeconomic Context,’’ 25 Annual Rev. of Sociology, 489–516. Smedley, Brian D. , Adienne Y. Stith, and Alan R. Nelson (2003). Unequal Treatment: Confronting Racial and Ethnic Disparities in Health Care. Washington, DC: The National Academies Press. Thomas, James C. and Elizabeth Torrone (2006). Incarceration As Forced Migration: Effects on Selected Community Health Outcomes. American Journal of Public Health, 96: 1762–65. Uggen, Christopher, Jeff Manza, and Melissa Thompson (2006). Citizenship, Democracy, and the Civic Reintegration of Criminal Offenders. The Annals of the American Academy of Political and Social Science, 605: 281–310.

Strategic Management Indigo Airlines Essay Example For Students

Strategic Management Indigo Airlines Essay Strategic Management INDIGO AIRLINES Europe Asia Business School Strategic Management Your Tutors Name: Prof. Bella Butler Full name of the student: Deepak Namram Full name of the student: Gargi Kumari Full name of the student: Sujata Sah Student number: 09104 Student number: 09105 Student number: 09121 Due Date: 10th Sep 2009 Date submitted: 10th Sep 2009 We declare the attached assignment is our own work and has not previously been submitted, in whole or in part, for assessment in any other unit. We have retained a copy of this assignment for my own records. Signed Signed Signed ___________________________________________________ ___________________________________________________ ___________________________________________________ Europe Asia Business School 1 Strategic Management INDIGO AIRLINES INDEX Executive Summary Introduction External Environment Analysis Airline Industry Attractiveness Porter’s Five Forces Opportunities Threats 3 4 6 6 6 11 12 Internal Environment Analysis Tangible Resources Intangible Resources Criteria of Sustainable Competitive Advantage Value Chain Analysis Strength Weakness 13 13 13 15 16 17 17 TOWS Feasible alternatives Final Recommendation APPENDIX A APPENDIX B BIBLIOGRAPHY 18 19 20 21 24 25 Europe Asia Business School 2 Strategic Management INDIGO AIRLINES Executive Summary Objectives The objective of this report is to study the external environment of the Aviation Industry in India. Subsequently, internal environment analysis is conducted for IndiGo Airlines. With the help of this comprehensive study, we have suggested recommendations that can be adopted by IndiGo to sustain its competitive advantage by utilizing its cost leadership strategy. We will write a custom essay on Strategic Management Indigo Airlines specifically for you for only $16.38 $13.9/page Order now Methods To understand the important factors responsible for the formulation of corporate strategy, we have utilized Strategic Management tools like Porter’s Five Forces model, Value Chain analysis, TOWS matrix etc. Limitations Due to confidentiality clause and corporate policies of the company, accurate financial data could not be obtained for IndiGo Airlines. However, most recent and reliable data sources have been referenced for the analysis of this case. Findings IndiGo airlines entered the low cost carrier market in aviation industry in 2006. It has been able to achieve its break even within two years of its launch and has reported gross revenue of 60 crores this year. Despite the decline in the aviation industry and global economic slowdown, IndiGo has accelerated its growth rate. Also, IndiGo being a new entrant has managed to become a cost leader in its sector. Europe Asia Business School 3 Strategic Management INDIGO AIRLINES Introduction India is one of the fastest growing aviation industries in the world. Because of the introduction of liberalization policy in the Indian aviation sector, the industry has witnessed a vast difference with the entry of the privately owned full service airlines and low cost carriers. In 2006, the private carriers accounted for around 75% share of the domestic aviation market. Besides, there was significant increase in the number of domestic air travel passengers. Some of the factors that have resulted in higher demand for air transport in India include the growing purchasing power of middle class, low airfares offered by low cost carriers and the growth of the tourism industry in India. In addition to the liberalization policy, the deregulation policy has also played a major role to encourage private players in the aviation industry. Below graph shows the gradual growth in the domestic air traffic: The growth in the aviation industry looked promising and hence attracted many low cost carriers like SpiceJet, GoAir and IndiGo after the success of Air Deccan in 2003 . On one hand, the booming opportunities incited players to expand capacity but on the other hand, rising fuel costs and taxation rates, increased the operational costs. Thus the low-cost players found it difficult to maintain their commitment. In their urge to survive, they were compelled to increase prices, add free refreshments and beverages on-board, etc. Some players sought refuge in mergers, whereas some survived by modifying their business model. However, amidst this aviation turmoil, IndiGo continued to fly high. In its endeavour to consistently maintain low costs, IndiGo resorted to measures like outsourcing and having a homogeneous fleet. These efforts helped IndiGo to offer its passengers low air fares. IndiGo is the latest entrant as a low cost carrier in the aviation industry of India. It started its operations on August 4, 2006. InterGlobe Enterprises, a renowned travel corporation, is the owner of IndiGo. The IndiGo team uses all of these resources to design processes and rules that are safe and simple, that make sense, and that cut waste and hassles, which in turn ensures a uniquely smooth, seamless, precise, gimmick-free customer experience at fares that are always affordable. It was awarded the title of ‘Best Domestic Low Cost Carrier’ in India for 2008. The airline currently operates 120 daily flights with a fleet of nineteen brand new Airbus A320 aircraft and flies to 17 destinations. IndiGo plans to serve approximately 30 Indian cities by 2010, with a fleet of approximately 40 A320s. 1 Below are the key factors of the business model of IndiGo airlines: †¢ †¢ †¢ A single passenger class. Single type of airplane to reduce training and service cost. No frills such as free food/drinks, lounges. 1 http://www. interglobe. com/ig-aviation. aspx Europe Asia Business School 4 Strategic Management INDIGO AIRLINES †¢ †¢ †¢ Emphasis on direct sale of ticket through Internet to avoid fee and commissions paid to travel agents. Employees working in multiple roles. Unbundling of ancillary charges to make the headline fare lower. In this report, we will analyse what strategies IndiGo followed to enter the aviation industry. Also, we will discuss how IndiGo implemented the low cost strategy to gain competitive advantage and provide recommendations to sustain its competitive position in the long-term. To know about the industry attractiveness of aviation and the factors that helped IndiGo enter this market, we will use the Porter’s Five Forces model. This will be useful in gaining insight about the entry barriers, power of buyers and suppliers, competition among the existing players and the feasible alternatives in aviation industry. SWOT analysis of the company will help us understand the current positioning of the company based on the analysis of external and internal environments. For internal analysis, we will study the criteria for sustainable competitive advantage as well as the Value Chain Analysis. This will help identify the strengths and weaknesses of the company. Further, the analysis of government policies, competitor’s strategies and other variables like fuel prices, increasing domestic traffic, economic downturn etc will lead us to the external influences that affect the aviation industry of India. Hence, using the external environment study, we can come to know about the opportunities and threats for IndiGo airlines. Thus, the consequences and influence of the all factors of SWOT taken together will aid in the formulation of alternative strategic actions that IndiGo may consider to sustain its competitive advantage. Europe Asia Business School 5 Strategic Management INDIGO AIRLINES External Analysis Airline Industry Attractiveness 1. Foreign equity allowed: Foreign equity up to 49 per cent and NRI (Non-Resident Indian) investment up to 100 per cent is permissible in domestic airlines without any government approval 2. Attraction of foreign shores: After five years of domestic operations, many domestic airlines too will be entitled to fly overseas by using unutilised bilateral entitlements to Indian carriers. 3. Rising income levels and demographic profile: Demographically, India has the highest percentage of people in age group of 20-50 among its 50 million strong middle class, with high earning potential. . Untapped potential of Indias tourism: Tourist arrivals in India are expected to grow exponentially, especially due to the open sky policy between India and the SAARC countries and the increase in bilateral entitlements with European countries, and US. 5. Glamour of the airlines: No industry other than film-making industry is as glamorous as the airlines. Ai rline tycoons from the last century, like J. R. D. Tata and Howard Hughes, and Sir Richard Branson and Dr. Vijaya Mallya today, have been idolized. Porter’s Five Forces strategy for Airline Industry . Threat of New Entrants †¢ Product differentiation: In low cost carriers, there is not much differentiation in the basic service that is being provided to the customers. Differentiation can only be achieved by Value Added Services. IndiGo provides check-in kiosks, stair-free ramps, and â€Å"Q-Busters†. Hence this argument works in favour of IndiGo. †¢ Switching cost: 1. The switching cost is not high. Customers can easily choose other low cost carriers. 2. The switching cost of an airline company to other business/industry is high as the exit cost is high. Europe Asia Business School 6 Strategic Management INDIGO AIRLINES In aviation industry the major entry barriers can be: †¢ Government regulations: 1. The governments open sky policy has encouraged many overseas players to enter the aviation market. 2. Aviation was primarily a government owned industry. Due to liberalisation Indian aviation industry is now dominated by privately owned full-service airlines and lowcost carriers. Private airlines account for around 75 per cent share of the domestic aviation market. 2 Indian Civil Aviation Policy:3 3. Private sector is allowed to operate scheduled and non-scheduled services. 4. Operator should be a citizen of India or a company or a body corporate which is registered in India and whose principal base of business is in India. 5. Chairman and at least two –thirds of its Directors are Indian citizens. 6. Foreign equity participation up to 49 percent and investment by Non- Resident Indians (N. R. I), Overseas Corporate Bodies (OCBs) up to 100% is allowed. The representation of the foreign investing institution/entity on the Board of Directors of the company shall not exceed one-third of the total. . Foreign airlines are not permitted to pick up equity. Foreign financial institutions and other entities who seek to hold equity in the domestic air transport sector shall not have foreign airlines as their shareholders. 8. As regards safety and security arrangements, the operators must ensure compliance with relevant regulatory requirements stipulated respectively by the Director Ge neral of Civil Aviation (DGCA) and the Bureau of Civil Aviation Security (BCAS). 9. For green field airports, foreign equity up to 100 percent is allowed through automatic approvals. For upgrading present airports, foreign equity up to 74 percent is allowed through automatic approvals and 100 percent through special permission (from FIPB). †¢ Setup costs: Nowadays, venture capital of $10 million or less is enough to launch an airline. 1. In order to overcome the shortfall of aircrafts during the peak seasons, airlines can utilize an ACMI lease agreement for the extra aircraft. If the airline has many aircrafts, either owned or leased, then they can offer their surplus aircrafts in their low season to another airline that is facing peak season. 2 India Ministry of Civil Aviation http://civilaviation. nic. n India Directorate of Civil Aviation http://dgca. nic. in, Bureau of Civil Aviation Security (India) – http://bcasindia. gov. in 3 Europe Asia Business School 7 Strategic Management INDIGO AIRLINES 2. An airline company will bear the cost of purchasing an aircraft if it wants to start or expand its fleet, leasing allows the cost to be spread across several years. At the lease term end, the lease can be renewed or aircraft can be returned, to be replaced with more modern aircraft. †¢ Fuel prices: Domestic ATF prices have increased by over 160 per cent from the beginning of 2005 till last year and by over 80 per cent from a year-ago levels. .uaea5d2fd8bc1bf0b3a56d210cb346bec , .uaea5d2fd8bc1bf0b3a56d210cb346bec .postImageUrl , .uaea5d2fd8bc1bf0b3a56d210cb346bec .centered-text-area { min-height: 80px; position: relative; } .uaea5d2fd8bc1bf0b3a56d210cb346bec , .uaea5d2fd8bc1bf0b3a56d210cb346bec:hover , .uaea5d2fd8bc1bf0b3a56d210cb346bec:visited , .uaea5d2fd8bc1bf0b3a56d210cb346bec:active { border:0!important; } .uaea5d2fd8bc1bf0b3a56d210cb346bec .clearfix:after { content: ""; display: table; clear: both; } .uaea5d2fd8bc1bf0b3a56d210cb346bec { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .uaea5d2fd8bc1bf0b3a56d210cb346bec:active , .uaea5d2fd8bc1bf0b3a56d210cb346bec:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .uaea5d2fd8bc1bf0b3a56d210cb346bec .centered-text-area { width: 100%; position: relative ; } .uaea5d2fd8bc1bf0b3a56d210cb346bec .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .uaea5d2fd8bc1bf0b3a56d210cb346bec .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .uaea5d2fd8bc1bf0b3a56d210cb346bec .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .uaea5d2fd8bc1bf0b3a56d210cb346bec:hover .ctaButton { background-color: #34495E!important; } .uaea5d2fd8bc1bf0b3a56d210cb346bec .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .uaea5d2fd8bc1bf0b3a56d210cb346bec .uaea5d2fd8bc1bf0b3a56d210cb346bec-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .uaea5d2fd8bc1bf0b3a56d210cb346bec:after { content: ""; display: block; clear: both; } READ: Alzheimer'S Essay ScholarshipIn India, oil companies do not import ATF directly; instead they refine it from imported crude oil. With rising crude oil prices, imports are becoming expensive day by day and at the same time, the government is unable to pass on the full impact of this rise to the consumer. As a result, the state owned oil marketing companies (almost 95 per cent of the market is with state owned firms) are forced to sell diesel, petrol, kerosene and LPG at way below cost, a cost they are trying to somewhat make up by raising the price of ATF, which is under their control. As a result prices of ATF in India are much higher than some of the other Asian countries. †¢ Resource: The aviation industry in India suffers a shortfall of pilots. The reasons are: 1. The aspirants can receive Commercial Pilot Licence (CPL) only if they undertake a training abroad. 2. The reason being that in India, there is a lack of dedicated flight Instructors, decadeold aircrafts and poor quality training offered at a price much higher than what is offered by flying schools in USA, Canada and Australia. 3. Indian institutes provide training with the help of their training partners in the foreign countries like U. S. A, U. K etc. Private airlines hire pilots; get expatriates or retired personnel from the Air Force or PSU airlines in senior management positions. Airlines can contract employees such as cabin crew, ticketing and check-in staff members. In airline sector, finding appropriate labour-force is very costly. Moreover, due to the liberalization of policies by government, foreign and private players often poach workforce of competitors which leads to talent-drain and thus losses. 2. Bargaining Power of Suppliers †¢ Any airlines in general face a duopoly of two major suppliers of aircrafts i. e. Airbus and Boeing. There are other suppliers like Dauphin,Dronier,Bell,ATR-42 but do not meet the requirements to serve the low cost commercial aircraft carriers, particularly IndiGo airlines. Fleet Forecast for the India-Region 2006-2011 shows that there will 8 Europe Asia Business School Strategic Management INDIGO AIRLINES be approx. 85% growth in the order rate of air carriers . Thus, suppliers are few and thus in better position to bargain as they always finds customers for their aircrafts. †¢ †¢ †¢ IndiGo fleet comprise of Airbus-A320 and the switching cost is high due to the limited number of suppliers. Due to shortage of commercial aircraft pilots in India the supply of pilots is concentrated, hence increasing their power. There are only four suppliers for ATF (Aviation Turbine Fuel); IOC, Hindustan Petroleum Corporation, Bharat Petroleum and ONGC and since their number is limited, they possess more power. The proof of evidence for high power enjoyed by ATF suppliers lies in the fact that the ATF prices constitute 35-40% of the costs in India compared to 20-25% globally. The brand value of suppliers is high due to their less number and results in higher bargaining power for them. The airlines also face a threat of forward integration since the suppliers are in close contact and are familiar with the knowhow of the aviation industry. The suppliers are few and thus in better position to bargain as they always finds customers for their aircrafts. †¢ †¢ †¢ †¢ 3. Bargaining Power of Buyers †¢ Buyers in airlines industry are large in number and highly fragmented thus lowering their power . With the growing Indian economy and increasing low cost carriers, the buyers have increased and so have the growth opportunities. The switching cost is minimal since there are multiple alternatives available. It is not difficult to move from one airline to another or to switch to a substitute. Furthermore the players in the particular strategic group do have minimalistic differentiating points. Backward integration from the buyers end is very difficult and next to impossible. †¢ †¢ †¢ 4. Competitive Rivalry The aviation industry is a highly competitive industry because of which it is difficult to earn high returns in this sector. Below are the major reasons for the high competition in the lowcost carrier airlines: †¢ Very little scope for differentiation between competitors’ products and services 9 Europe Asia Business School Strategic Management INDIGO AIRLINES †¢ †¢ †¢ Aviation is a mature industry with very little growth. The only way to grow is by stealing away customers from competitors Suppliers of aircrafts are the same, i. e. , Boeing and Airbus. Hence supplier’s bargaining power is high. Switching cost of customers is high for low cost carriers, i. e. , there is no brand loyalty. Closest competitor of IndiGo is SpiceJet followed by GoAir . Below is brief description about each of them: SpiceJet is a low-cost airline based in New Delhi, India. Spice Jet’s mission is to become India’s preferred low cost airline, delivering the lowest air fares with the highest consumer value, to price sensitive consumers. Its vision is to ensure that flying is no longer confined to business travellers, but is affordable for everyone and thus the tagline ‘flying for everyone’ Spice Jet airways began its operations in May 2005. SpiceJet has chosen a single aircraft type fleet which allows for greater efficiency in maintenance, and supports the low-cost structure. It has a fleet of 6 Boeing 737-800 in single class configuration with 189 seats. SpiceJets new generation fleet of aircraft is backed by cutting edge technology and infrastructure to ensure the highest standards in operating efficiency. Spice Jet currently flies to 11 destinations. 4 GoAir Airlines, owned by Wadia Group, is a low-cost budget airline based in Mumbai, India. It has been showcased as â€Å"The Peoples Airline†. GoAir is looking at commoditising air travel by offering airline seats at marginally higher train prices to all cities in India. The Airline’s theme line is â€Å"Experience the Difference† and its objective is to offer its passengers a quality consistent, quality assured and time efficient product through affordable fares. GoAirs business model has been created on the punctuality, affordability and convenience model. Go Air operates four A320 aircraft with a single class, 180-seat configuration, and plans to expand its fleet to 33 aircraft in three years. 5 Thus, we can summarize from above data that all the three players are trying to follow cost leadership strategy by bringing down the ticket rates to the minimum ossible value. However, it is clear that, to sustain in this cutthroat competition, each player will have to come up with different strategies to improve the non price factors . 4 http://www. zoomtra. com/Airlines/Spicejet. html http://www. zoomtra. com/Airlines/Go-Air. html 5 Europe Asia Business School 10 Strategic Management INDIGO AIRLINES 5. Availability of Substitutes The substi tute for low cost airline company is the railways. But this substitute is not very powerful due to the following reasons: 1. Customers use airline transport as it is convenient and saves travelling time. So trains cannot work as a substitute to save time. 2. Secondly, many customers use airlines as a status symbol. So again, trains cannot substitute for prestige. So if we consider IndiGo airlines, the direct substitutes are the other low cost carriers like SpiceJet and GoAir. So in this case, threat of substitutes is high as the switching cost between low cost carriers is low. Opportunities †¢ IndiGo airlines have not ventured into the huge air freight market which can contribute a sizeable portion of the revenue. A study by Centre for Asia Pacific Aviation or CAPA6, an aviation consulting firm estimates the cargo services of 3. million tonnes per annum. According to a research conducted by PhoCus, Indian domestic traffic will touch 86. 1 million by 2010,up from 32. 2 million in 20077. The flight density of IndiGo airlines is limited in domestic market; hence there is a big scope to increase the flight frequency . The huge untapped international sectors should be explored once I ndiGo has a considerable presence in the domestic market. IndiGo currently does not have too many long haul aircrafts and as per CAPA study by 2020, Indian Airports are expected to handle more than 100 million passengers. IndiGo airlines should focus on long haul aircrafts both for domestic and international sectors. The chartered flight services still remain an area not exploited by Indian aviation industry and IndiGo airlines can play a major role in tapping the potential in that particular market. †¢ †¢ †¢ †¢ 6 Centre for Asia Pacific Aviation – www. centreforaviation. com 7 www. phocuswright. com Europe Asia Business School 11 Strategic Management INDIGO AIRLINES Threats †¢ †¢ †¢ ATF (Air Turbine Fuel) prices have increased radically since 2005 . Foreign and private players often poach work-force of competitors. Extensive Government Interference can affect the accountability of the organization. In aviation industry, government has control over fuel prices, foreign investments (e. g. FDI policies), tourism laws, taxes etc. This can greatly affect the day to day business in the airline industry. Like every other industry, recession has hit aviation industry as well. People have cut down on tourism and corporate travels have also been slashed down. The shortage of trained pilots, co-pilots and ground staff is severely limiting the growth prospects of all the airline companies. Barriers to exit in aviation industry are high because of high capital investment, no government restrictions and loss of brand image. †¢ †¢ †¢ Europe Asia Business School 12 Strategic Management INDIGO AIRLINES Internal Environment Analysis Resources, Capabilities and Core Competencies are the key elements of the Internal Environment. The resources are tangible and intangible. Tangible resources †¢ Aircrafts: The airline currently operates 120 daily flights with a fleet of nineteen brand new Airbus A320 aircraft and flies to 17 destinations. Human Resources: 1. The human resources are the pilots, crew members and ground staff. . No airline can recruit a trainee pilot and directly assign him to fly an airplane carrying around 500 passengers. The labour-force has to be trained and then assigned with tasks to perform after proper evaluation. Fuel: 1. Porter’s five forces model does not cover the importance of complementary product. 2. ATF is the complementary product for airplane and it constitutes approximately 35% of the production costs. †¢ †¢ Intangible resources †¢ Brand Equity/Reputation IndiGo is the most reputed low cost carrier due to the following reasons: 1. On time arrivals is the key differentiating factor for IndiGo Airlines. . IndiGo keeps implementing new and innovative ideas to increase the quality of customer service. Recent example is: IndiGo has roving â€Å"check-in counters† where passengers with only cabin baggage can check-in with an IndiGo official with a handheld device, rather than lining up at the check-in counter. 3. It gives the customers the freedom to carry their own eatables and snacks on board. 4. Compared to the direct competitors, that is, the other low cost carriers like SpiceJet, Jetlite, etc. IndiGo offers the lowest airfare . Social Capital: 1. .u2f7b9c07f3dead68cb25b62ef6be766e , .u2f7b9c07f3dead68cb25b62ef6be766e .postImageUrl , .u2f7b9c07f3dead68cb25b62ef6be766e .centered-text-area { min-height: 80px; position: relative; } .u2f7b9c07f3dead68cb25b62ef6be766e , .u2f7b9c07f3dead68cb25b62ef6be766e:hover , .u2f7b9c07f3dead68cb25b62ef6be766e:visited , .u2f7b9c07f3dead68cb25b62ef6be766e:active { border:0!important; } .u2f7b9c07f3dead68cb25b62ef6be766e .clearfix:after { content: ""; display: table; clear: both; } .u2f7b9c07f3dead68cb25b62ef6be766e { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .u2f7b9c07f3dead68cb25b62ef6be766e:active , .u2f7b9c07f3dead68cb25b62ef6be766e:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .u2f7b9c07f3dead68cb25b62ef6be766e .centered-text-area { width: 100%; position: relative ; } .u2f7b9c07f3dead68cb25b62ef6be766e .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .u2f7b9c07f3dead68cb25b62ef6be766e .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .u2f7b9c07f3dead68cb25b62ef6be766e .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .u2f7b9c07f3dead68cb25b62ef6be766e:hover .ctaButton { background-color: #34495E!important; } .u2f7b9c07f3dead68cb25b62ef6be766e .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .u2f7b9c07f3dead68cb25b62ef6be766e .u2f7b9c07f3dead68cb25b62ef6be766e-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .u2f7b9c07f3dead68cb25b62ef6be766e:after { content: ""; display: block; clear: both; } READ: Diabetes EssayIndiGo has amicable relationship with the other organizations that contribute to the value addition for the service provided to the customers. 2. IndiGo has engaged many Travel web-portals and regional travel agents with incentives like booking commissions, etc. There have been no instances of distress between IndiGo and its other collaborators, that is, suppliers. †¢ Europe Asia Business School 13 Strategic Management INDIGO AIRLINES 3. Collaboration with hotels: Mumbai-based hotel chain operator Sarovar Hotels and IndiGo Airlines announced a marketing tie-up for frequent travellers. The highlights are: a. The arrangement will allow guests staying at select Sarovar Hotels across 26 destinations in India to avail a 10 per cent discount on their next travel booking with IndiGo. b. While IndiGo flyers can avail up to 25 per cent discount on published room tariff, 10 per cent discount on holiday stay packages and 10 per cent discount on restaurant dining at select Sarovar properties8. Hence IndiGo has a remarkable Social Capital. †¢ Brand Awareness: IndiGo is a well known Low Cost Carrier in India. The following points contribute to the brand awareness of IndiGo: 1. Advertising using print media like newspapers, billboards, etc. . It may not pay for an advertisement in a newspaper, but has been covered in news for its low cost strategy implementation. 3. As IndiGo provides better value added services to the customers, Word of Mouth promotion also works in its favour. Employee Relationship: Good Employee Relationship is a key factor to sustain competitive advantage. IndiGo provides sev eral incentives to its employees. As per the news article published in The Hindu Business Line: â€Å"IndiGo officials claimed that they have been seeing a healthy growth in passenger numbers and had no plans to defer delivery of any of the 100 Airbus it has ordered. Hence, it is clearly evident from the above statement that IndiGo is optimistic about its long term growth. Also, it is planning to expand its employee strength and at the same time there is no indication of downsizing the current staff. Quoted below are some comparisons about the different approaches implemented by various airlines at the time of recession stated in the same article: â€Å"At a time when several domestic airlines are looking to prune their staff strength, the Delhi-based low cost airline, IndiGo, is on the lookout for more pilots, cabin attendants, customer service and airport service agents. â€Å"In the recent past, both Kingfisher Airlines and Jet Airways have asked their staff to leave. While Je t Airways offered a â€Å"voluntary retirement scheme† to more than 300 of its †¢ 8 http://www. business-standard. com/india/news/sarovar-hotels-indigo-in-marketing -tie-up/60537/on Europe Asia Business School 14 Strategic Management INDIGO AIRLINES staff, it was also planning to lay off about 1,900 of its staff. In late September, Kingfisher announced that 300 employees had â€Å"parted ways† with the company†9. The above facts show that IndiGo has taken a positive approach while dealing with its loyal employees at the time of economic slowdown. Four Criteria of Sustainable Competitive Advantage: Resources| Aircraft Human Resources Fuel Brand Equity Social Capital Brand awareness Employee Relationship Valuable Y Y Y Y Y Y Y Rare N N N Y N N N Costly to Imitate Non Substitutable N N N N Y N N Y Y Y Y Y Y Y 9 http://www. thehindubusinessline. com/2008/11/11/stories/2008111151850100. htm Europe Asia Business School 15 Strategic Management INDIGO AIRLINES Value Chain Analysis Europe Asia Business School 16 Strategic Management INDIGO AIRLINES Strengths †¢ †¢ †¢ †¢ †¢ †¢ IndiGo has high brand awareness and brand equity. Cost leadership: Successful implementation of low cost strategy. Highly efficient management that ensures high rate of on- time arrivals. Continuous innovation to improve on non price factors. Tie-up with hotels. Ease of ticket booking for customers. Weaknesses †¢ †¢ †¢ Scope of product differentiation is less. Benefits of the innovations implemented by IndiGo to provide better services to the customers are short-lived, as these can be easily imitated by the competitors. IndiGo is not exploring the untapped domestic air cargo market. Europe Asia Business School 17 Strategic Management INDIGO AIRLINES TOWS Strengths(S) 1. IndiGo has high brand awareness and brand equity. . Cost leadership: Successful implementation of low cost strategy. 3. Highly efficient management that ensures high rate of ontime arrivals. 4. Continuous innovation to improve on non price factors. 5. Tie-up with hotels. 6. Ease of ticket booking for customers. Weaknesses(W) 1. Scope of product differentiation is less. 2. Benefits of the innovations implemented by I ndiGo to provide better services to the customers are short-lived, as these can be easily imitated by the competitors. 3. IndiGo is not present in domestic air cargo market. 4. Not present in International market Opportunities(O) SO WO 1. Freight market 1. Increase domestic 1. IndiGo can plan to go 2. Increase in domestic air destinations for flights international. traffic 2. Upgrade to long haul aircrafts 2. IndiGo can expand its services 3. International market as per demand to freight/cargo. 4. Chartered flight services 3. Diversify to chartered flight 5. Promotion of regional air services. connectivity 6. Development of airport infrastructure Threats(T) 1. 2. 3. 4. 5. 6. Rising ATF prices Increasing competition Economic slowdown Poaching Government interference Scarcity of trained pilots ST WT of 1. Sign anti poaching 1. Continuous innovation agreements with competitors. value added services. 2. Effective incentive programmes to avoid talent drain. 3. Hire well trained pilots from other countries as well as retired Air Force personnel. Europe Asia Business School 18 Strategic Management INDIGO AIRLINES Feasible Alternatives 1. Increase domestic operation There are a number of initiatives taken up by government to encourage aviation industry, e. g. , promotion of regional air connectivity10, Open Sky policy11 and policy of Greenfield airports12. In addition to this, government has also made plans for the development of airport infrastructure13. 5 airports have been selected for this purpose, of these 24 airports would be taken up for city side development through PPP including maintenance and operation of the terminal buildings, cargo operations and real estate development14. All these factors indicate towards a favourable environment for growth in the domestic aviation sector. Hence it would be a wis e option for IndiGo to increase its domestic operations. IndiGo must increase the number of destinations and can start long haul aircrafts. 2. Extension Currently, IndiGo is concentrating only in domestic passenger flights. However, the freight/cargo market and charted plane service are the areas that can prove to be good potential market for IndiGo. As per the reports from an economic survey this year, it was stated that domestic cargo showed a growth of 14. 55%15. Besides, chartered flight services are an untapped market for IndiGo. Thus, IndiGo has a huge opportunity to expand in both these arenas. To expand air connectivity on Tier II and Tier III cities and to promote regional air connectivity a separate category of permit, Scheduled Air Transport (Regional) Services had been introduced. The `Open Sky policy encourages the promotion of Regional Airlines, lower fares to make aviation affordable and remove price monopolies in respect of Aviation Turbine Fuel (ATF). The Policy aims to have an approval mechanism for setting up of new airports. Guidelines for granting technical approvals by various agencies involved in setting up of an airport would be provided upfront to provide clarity, Airport Authority of India – www. airportsindia. org. in 12 11 10 Airport infrastructure has been undertaken through the PPP route in major metro cities like Delhi, Mumbai, Bangalore and Hyderabad. Modernisation of he Kolkata and Chennai airports is being undertaken by the AAI. For the non-metro airports AAI is responsible for the airside development. 14 13 http://infrastructure. gov. in/pdf/brochure_airports. pdf Press Trust of India / New Delhi July 2, 2009 15 Europe Asia Business School 19 Strategic Management INDIGO AIRLINES Final Recommendation As inferred from the above two solution analysis, we recommend that IndiGo must increase its domestic operations by starting flights connecting to new destinations and long haul flights. As the opportunities are vast for this purpose, the other low cost carriers may also venture in this area. So using the cost leadership strategy, IndiGo can gain competitive advantage over its competitors as the first mover. Once the above strategy is successful and results in promising revenue growth, IndiGo can use extension to freight and chartered services as the next objective for further expansion. Europe Asia Business School 20 Strategic Management INDIGO AIRLINES APPENDIX A Exhibit 1: Increase in Indian domestic air traffic 16 Exhibit 2: Expected growth of fleets in India17 16 17 Sources: Airports Authority of India Source: AS MRO Initiative 2006 Europe Asia Business School 1 Strategic Management INDIGO AIRLINES Exhibit 3: Market share of Low Cost Carriers in India in Jan 200918 Exhibit 4: Air Passenger revenue percentage growth19 18 19 Source: Indian Civil Aviation Ministry : Source: CMIE, PL Research Europe Asia Business School 22 Strategic Management INDIGO AIRLINES Exhibit 5: Rising ATF prices Europe Asia Business School 23 Strategic Management INDIGO AIRLINES APPENDIX B Exhib it 6: Comparison of air fares Exhibit 7: Comparison of air fares Europe Asia Business School 24 Strategic Management INDIGO AIRLINES BIBLIOGRAPHY Websites . www. indigoairtickets. com 2. India Ministry of Civil Aviation http://civilaviation. nic. in 3. India Directorate of Civil Aviation http://dgca. nic. in/ 4. Airport Authority of India www. airportsindia. org. in/ 5. Bureau of Civil Aviation Security (India) – http://bcasindia. gov. in/ 6. Centre for Asia Pacific Aviation – www. centreforaviation. com 7. www. cleartrip. com 8. www. infrstructure. gov. in 9. www. interglobe. com 10. www. civilaviation. nic. in 11. www. business-standard. com 12. www. thehindubusinessline. com Europe Asia Business School 25

CEO in the making Essays

CEO in the making Essays CEO in the making Essay CEO in the making Essay Strategic Human Resource Management (MHR 705/305H) University of Wisconsin-Madison School of Business spring 2007 PROFESSOR professor Barry Gerhart 4194 Grainger Hall; Office: 262-3895; Home: 277-1061; [emailprotected] wisc. edu CLASS MEETINGS 8:00 5, Tuesday Thursday, 2165 Grainger Hall OFFICE HOURS 1 1 12:45, Tuesday Thursday, or by appointment. PREREQUISITE An introductory statistics course and ability to use Microsoft Excel. OVERVIEW This course is designed to develop an understanding of how human resource decisions contribute to business performance. No business strategy can be uccessfully executed unless the right people are in place and they are given the opportunity and incentive to contribute to executing the strategy. OBJECTIVES Specific learning objectives include the ability to: Create alignment between human resource strategies and business strategies in a cost-effective manner. Design work systems and roles that allow employees to contribute to organization performance. Identify, select, and develop people having the competencies that allow them to contribute to organization performance. Use compensation and other HR systems that provide rewards and incentives to ttract and retain employees and to encourage them to contribute to organization Understand how an employment relationship is like a contract and how the nature of this contract is evolving and taking different forms. Make human resource decisions that are legal and ethical. Learn how to use quantitative tools and information where appropriate to support decisions. GENERAL Class attendance and participation are expected. Assignments are due letter grade per day will be assessed on assignments handed in after that time. You must take the final exam at the scheduled time. Assignments and the exam should be identified by placing your name on the back of the last page. TEXT Noe, R. , Hollenbeck, J. R. , Gerhart, B. , Wright, P. (2006). Human Resource Management: Gaining a Competitive Advantage. Chicago: Irwin. 5th Edition. ISBN 0-07-298738-3. Several copies of this book are available from the Business School Library in case you decide not to purchase the book. Let me know if more reserve copies are needed. Class sessions will not rely heavily on the text. It will more often be a source of more detailed information on topics we cover in class as well as a source of additional company examples. PACKETS Two packets can be purchased in the room adjacent to the Business School Copy Center on the first floor: (1) Harvard cases, and (2) course topic outlines. A third set of materials, readings, and assignments is available online at the course website (see below). E-RESERVESAvailable through MYUW. ASSIGNMENTS Case write-ups (3). Please submit written analyses of Au Bon Pain, Citibank, and GEs Talent Machine: The Making ofa CEO. Each case write-up is to be completed as an individual assignment or you may work with one or two other persons. (If the latter, submit one write-up. ) As noted earlier, this and other ssignments should be identified by placing your name on the back of the last page. The cases will be discussed in class the day they are due. As such, the case write-up must be submitted at the beginning of class. The remaining cases on the syllabus are for class discussion only. No written assignment is required. Write-ups should be no longer than two double-spaced pages of text (normal fonts and margins). A one-page exhibit should also be used to summarize the Roles, Rewards, and People aspects of the HR Diamond (to be introduced in class). The most important parts of your write-up are the Alignment nd Application sections. Write-ups should incorporate relevant issues from the textbook and class (Application), as well as your own insights and analyses. The text section of your write-up should include areas A C (see below) as headings. The exhibit section of your report should have headings corresponding to D F (see below). Format and grading criteria for case write-ups: A. Business Strategy (10 points) Briefly describe the generic strategy (e. g. , cost, differentiation) the firm uses to compete in its product market. Then, be more specific: What is unique about its product or its customer experience? B. Alignment (30 points) How do roles, rewards, and people practices (HR strategy) support the business strategy? Use the HR Diamond. C. Application (30 points) (1) Apply concepts/models/theories or examples from text and class. (Company As compensation system consistent/inconsistent with theory. ) (2) Note similarities/differences (and their reasons) when compared to other companies we discuss. Company A pays employees based on _ rather than using the _ compensation approach favored at Company A because it is important that Company A whereas Company (3) Identify problems with the HR strategy. Company As decision to pay managers based on _ runs the risk of II. Exhibit/Table Section of Report (1 page maximum) (20 points) D. Roles Identify/list the most imp ortant aspects of how work is organized. E. Rewards Identify/list the most important aspects of the incentives used. F. People Identify/list the most important aspects of competencies people need and how people are selected and developed to have these competencies. A final grading criterion used is: Readability (10 points) Organization of paper, including headings. Effective communication of ideas. Problem Sets (4). You may do these as individual assignments or you may work with ne or two other persons. (If the latter, submit one write-up. ) An example of each will be provided in class or in a handout. For each problem set, there is either an example discussed in class or a detailed example included in the problem set assignment. If you need help with the problem sets, do not hesitate to email me or come by my office. It is important to quantify the result of human resource decisions to the extent possible. The problem sets provide examples of how quantitative data can be used to make better human resource decisions. Policy Evaluation Presentation. This is a team assignment. Your team should consist of 2 to 4 people. For this assignment, explain why a change in business strategy or lack of fit with business strategy created a need for an HR policy change. Evaluate the effectiveness of the new human resource policy introduced in an organization and present your findings to the class Final Exam. There is a final, comprehensive, in-class exam. The exam will re-visit cases and problem sets from the term and other issues covered in class. The exam is an individual task. Based on past semesters, regular class attendance is associated GRADING case Analyses (3) Problem Sets (4) 30 % Final Team Presentation (including peer evaluation) 15 % Final Exam 25% Attendance/Contribution to Class DiscussionComes into play if within . 5 of next grade. A 92. 5- AB87. 5 92. 4 B 82. 5-87. 4 BC77. 5 82. 4 Et cetera Course Schedule Week 1 Introduction Jan. 3 Note: For most weeks, there will be readings (mostly newspaper articles and brief magazine articles) available on your MylJW website, in addition to those listed below. Please read these additional articles each week as well. HR Strategy (HR Diamond) Jan. 25 Text, Chapters 1, 2 Reading: Right Away and All at Once: How We Saved Continental. Harvard Business Review. [available via e-reserves website] Reading: Barney, J. B. Wright, P. M. On Be coming a Strategic Partner: The Role of Human Resources in Gaining Competitive Advantage. Human Resource Management, Spring 1998, Volume 37, No. 1, pp. 1-46. [available via e-reserves website] Reading (optional): Becker, B. Huselid, M. (2003, December). Measuring HR? Benchmarking Is Not the Answer! HR Magazine, pp. 57-61. Reading (optional): Walker, G. MacDonald, J. R. (2001, Winter). Designing and Implementing an HR Scorecard. Human Resource Management, 40(4), 365-377. week 2 Case: Human Resources at Southwest Airlines Feb. 1 Roles Text, Chapter 4 (pp. 145-151 on Job Analysis; pp. 158-166 on Job Design; pp. 167-168 on HR at IBM only) Reading: Whole Foods is All Teams. FastCompany. Reading/Optional: The Anarchists Cookbook. FastCompany. Whole Foods] Reading/Optional: Love the Worker, Not the Union, A StoreSays As Some Organize [Whole Foods] week 3 Feb. 6 Rewards Case Write-Up: Au Bon Pain Feb. 8 People: Commitment Reading: Ittner Larcker. Coming up Short on Financial Measures. Harvard Business Review. Reading (optional): Barber Strack. The Surprising Economics ofa People Business. Harvard Business Review. Wee k 4 Feb. 13 People: Competencies Measures: Competencies (including personality) Feb. 15 Planning Text, Chapter 5 (pp. 174-193 only) Problem Set 1 Due: The value of favorable employee attitudes week 5 Feb. 0 Recruiting Retention Text, Chapter 5 (pp. 194-208 only) Text, Chapter 10 Reading: The 100 best companies to work for in America, Fortune [available via e- reserve] Case: SG Cowen: New Recruits [bring your ratings of the four candidates] Feb. 22 Staffing/Globalization Text, Chapter 7 (PP. 302-306 only) Text, Chapter 1 5 Reading: Four Seasons Goes to Paris. Academy of Management Executive. Reading: More Flexibility by Europes Labor Stokes a Recovery. Wall Street Journal. Reading: Deep Inside China, American Family Struggles to Cope. Wall Street week 6 Feb. 7 Staffing/EEO Issues Text, Chapter 3 March 1 Staffing/EEO Issues Problem Set 2 Due: P lanning headcount needs. March 6 Staffing/Selection Text, Chapter 6 Reading: Employers Gauge Candidates Skills at Real-World Tasks . wall Street Journal. March 8 Staffing/Selection Wee k 8 March 13 Assessing Performance Text, Chapter 8 Case Write-Up: Citibank March 1 5 Pay-setting Merit Pay Text, Chapter 1 1 Case: Merck Wee k 9 March 20 Incentive Pay: Upside Potential Text, Chapter 12 Reading: The Art Of Motivation: What you can learn from a company that treats workers like owners. Inside the surprising performance culture of steelmaker Nucor. Business Week. Case: Lincoln Electric March 22 Incentive Pay: Downside Risks Reading: Hastings, D. F. (1999). Lincoln Electrics harsh lessons from international expansion. Harvard Business Review, May-June, 163-178. Reading: Kerr, S. (2003). The Best-Laid Incentive Plans. Harvard Business Review. Problem Set 3 Due: The value of accurate employee selection decisions. March 27 Benefits Text, Chapter 13 (skim only) Case: SAS Institute March 29 Training Development Text, Chapter 7 (PP. 55-280; 298-302 only) week 11 SPRING BREAK (April 3 5) week 12 April 10 Staffing and Development/ln-basket exercise April 12 Career Management Succession Planning Text, Chapter 9 (PP. 396-417) Case Write-Up: GEs Talent Machine: The Making ofa CEO. week 13 April 17 Employee Relations Legal Issues: Union and Nonunion Employees Text, Chapter 14 Text, review Chapter 10 (pp. 427-433 only) April 19 Mergers Acquisitions HR Strategy (HR Diamond): Review Exam Review Problem Set 4 Due: Invest in Training? week 14 April 24 Work Day week 1 5 May 1 May 3 week 16 May 8 May 10 Policy Presentations Exam

How I Got my Indie Novel Into the Nations Largest BrickMortar Store

How I Got my Indie Novel Into the Nations Largest BrickMortar Store "How I Got my Indie Novel Into the Country's Largest Brick-and-Mortar Chain" - By Carol Cooper Carol Cooper is a journalist, author, and doctor. She writes for The Sun newspaper, broadcasts on TV and radio, and has a string of non-fiction books to her name including an award-winning textbook of medicine. In this post, Carol reveals how she got her latest novel, Hampstead Fever, into Britain’s largest chain of booksellers. For the last few weeks, I’ve bragged to anyone who’ll listen that my self-published novel, Hampstead Fever, is in a prestigious front-of-store promotion in WH Smith travel bookstores. And no wonder I’m proud. Not only am I distributing my novel as an ebook - readers can now get it at over 700 airports and train stations around the UK.  WH Smith, after all, is the go-to place to grab a good read for a journey or holiday.I don’t have a sure-fire recipe for other indie authors to follow, but I can certainly explain what worked for me. Read how @DrCarolCooper got her latest novel into UK's largest brick-and-mortar chain 1. Get out and listen to peopleI owe a lot to the London Book Fair, circa 2015. That’s where I came across WH Smith Travel buyer Matt Bates. He spoke at Author HQ, a part of the fair dedicated to writers. He was charming, knowledgeable and enthusiastic and he wasn’t full of himself, which, as I recall, one or two other speakers at the fair were.I said a bland ‘Hello’ to Matt at the end of his talk. I don’t remember my exact words, but I said nothing about my writing. Hampstead Fever  at the WH Smith at London Gatwick AirportNo harm in trying, especially as by then my book was in many bookstores including Waterstones, Heffers Cambridge, and a sizeable number of independent bookshops, and had featured in local press and radio.   I sent Matt a brief email, attaching that eye-catching cover.Matt asked to see a copy of the book. There followed a longish silence. Then he replied, proposing a promo in over thirty of WH Smith’s travel bookstores as part of a buy one, get one half-price offer.I needed to do nothing more, except talk to Clays about a reprint and arrange the discount and return terms that WH Smith requires.I’m certain the stunning cover did much of the work for me. As for the content, people have been kind enough to say that Hampstead Fever captures multicultural urban life. It’s an easy read and makes people laugh, but it also covers some weightier issues.To other self-publishing authors wanting to get into booksho ps, my single best piece of advice is this: aim for a quality product that booksellers will love to have in their stores. "Aim for a quality product that booksellers will love to feature." @DrCarolCooper In your chain of priorities, how important is it to you to get your book in stores? If you have any thoughts, comments or questions for Carol Cooper, leave them in the comments below. Find out more about the author on her website or by following her on Twitter.

News media Essay Example | Topics and Well Written Essays - 250 words

News media - Essay Example in Papademas 11), which states that all individuals have the freedom to express and impart opinions using the media as a vehicle to convey their thoughts, even in the presence of boundaries (Papademas 11). Recognizably, people rely on news reports whether on print, television, radio, or the web, when in search of updated information about the happenings in the society. However, the freedom, enjoyed by most journalists now, has turned out to become the cause of some people’s nightmare, and the reason to this is the excessive invasion of privacy by the journalists themselves. Many incidents of privacy invasion are reported every year around the world, and as a consequence, many journalists were sued due to their repeated disrespect. According to Merrill (qtd. in Gordon et al.), seriously considering the idea of privacy for journalists is like committing suicide because the nature of their job is basically to gather and give information, and privacy is always hard to apply in this situation. Hence, if that is the case, then it would be impossible to expect that the invasion of privacy will somehow come to an end at this

Performance Measurement System in Julphar Company Term Paper

Performance Measurement System in Julphar Company - Term Paper Example RAK Ceramics is a company based in United Arab Emirates (UAE). The company was established in 1989 by Abdallah Massaad. The Company has been able to establish itself as the world’s largest ceramic manufacturing companies in a span of 20 years. The factory is however situated in the Arabian dessert. The products that RAK Ceramics has been offering consist of tableware, porcelain tiles, sanitary ware, bath ware, fittings, adhesive and faucets (Attwood â€Å"Racking up Miles for Tiles†). The Company operates in several countries of Asia as well as Middle-East such as, Bangladesh, Iran, India, Sudan, China, etc. In this study the performance of this company would be measured and analysed with respect to its customer satisfaction ability, improvement activities, internal process, employee satisfaction, competition handling, and innovation (â€Å"Company Profile†). Problem Statement It not necessary that every research study is developed to discuss problems and challen ges. Sometimes even they are even designed to evaluate and analyse situation, such as performance of a company. As in this case, the performance management system of the ceramic manufacturing company, RAK Ceramic would be analysed through statistical tools. ... Internal Process The internal process of RAKCeramics is mainly based on its technology integrated business model. The strength lies in the speed of improvement that the company manages and supplies the product to the market as soon as customers demand. The company owns 10 factories, which is well equipped with the most modern machineries. 8000 bath wares are manufactures every day in three plants in the similar location. Production and distribution is well-managed through IT based supply chain (â€Å"Corporate Profile†). Innovation RAK Ceramics’ core competency is offering innovative products and unique designs to its customers using technology. The strategy of the company is to innovate and introduce new designs for the customers is a strategy for improving performance. They are also utilising scan coding system for allowing customers to utilise their smart phones for scanning the QR code in the advertisement and directly visit the website of the company. They are also developing a mobile tool called iDesign, where customers can design their incorporate their own designs for customisation (Hankir â€Å"RAK Ceramics CEO Sees No Slowdown in U.A.E; Plans India IPO to Build Plant†). Improvement activities The demand for RAK Ceramics is continuously rising, so the company is looking forward to improve their manufacturing capacity by augmenting its power infrastructure. Several new power plants is planned to be launched in emirates in order to utilise sustainable sources of energy to respect the environmental concerns and maintain efficiency. The requirement for more power capacity was also identified in summers by the company

Health Problems as a Result of Environmental Crisis Essay Example for Free

Health Problems as a Result of Environmental Crisis Essay Given that I work in an Emergency Department, the usual encounters we have involves health problems. However, in the past months and last year, people that we encounter are those of with fever and flu. Some diseases were also frequent. Diseases that arouse were usually an effect of a downfall in body’s immune system. This has happened when the extreme changes in environmental climate took place. As a result of the fast growing effects of global warming, the weather has extreme changes within a day. The extreme cold and hot weather that occurs in twenty-four hours has a bad effect on body temperature. The tremendous  Ã‚   changes weaken the body since the type of climate that occurs does not match the survival qualifications of human. In order to be involved in this issue, I suggest that the Emergency Department lead a program awareness to fight global warming, deal with its effects, and how to be healthy during the experience of its effects. On the other hand, I can be of help to if I encourage friends and families to practice activities or home choirs that will help lessen climate change. Like, use products with Energy Star seal, this is product lessen greenhouse effect and air pollution. Also, saving energy thru maintenance and cleaning of heating and cooling equipments used in our homes. I can also save energy by using green power, where the energy is from the sun and the wind. Frugality not just in money can help deal with climate change. For example, recycling materials we use at home   and buying new stuff as a product of recycling. Another way to conserve energy is by taking public transportation in routinely going to work or school. Or maintaining the efficiency of your car so it will not emit high amounts of greenhouse emissions. In offices, power management features should be discussed with the employees especially those workers who operate machineries. With this adjustments in our daily lives, we can help fight climate change and also save the world. Reference Climate Change – What You Can Do. January 28, 2008 retrieved from http://www.epa.gov/climatechange/wycd/office.html

Essay on Homers Odyssey - Comparing Odysseus and Telemachus :: comparison compare contrast essays

The Parallel between Odysseus and Telemachos in Odyssey      Ã‚     In Odyssey, Homer creates a parallel between Odysseus and Telemachos, father and son. The two are compared in the poem from every aspect. One parallel was the quest of Telemachos, in correlation with the journey of his father. In this, Odysseus is developed from a childish, passive, and untested boy, to a young man preparing to stand by his father's side. This is directly connected to the voyage of Odysseus, in that they both lead to the same finale, and are both stepping-stones towards wisdom, manhood, and scholarship.    Through these voyages certain parallels are drawn concerning Odysseus and Telemachos: the physical journeys, the mental preparations they have produced, and the resulting change in emotional makeup. These play an immense role in the way the story is set up, due to the purpose of each character's journey, their personal challenges, and the difficulties that surround them.    As Homer makes it apparent, there are other underlying themes embedded in the story that would just confuse the reader if they were not there. An example of this is the emotional aspects of both characters. If one does not understand this key element, their is no way that the sequence of events would cohere. "Why didn't Telemachos look for his father earlier? Why did Penelope wait twenty years to consider remarrying? How did this affect Odysseus in his journey?".    These are questions that would go unanswered unless the reader reaches within the emotions of the character. In the case of Telemachos, his emotions shaped his well being. For example, had it not been for Athene giving him confidence, by no means would he ever have thought of taking such a voyage, hence, Telemachos would have never participated in his "final test" against the suitors either. His sorrow and anger from the loss of his father and his mother constantly being attacked and proposed to by piranha-like suitors were also driving forces towards his journey.    Some of these are brought out in different situations, both positive and negative, such as Menaleus's mention of his father, which caused a sudden out-burst of tears, and the proud and accomplished feeling he received from leaving Sparta.. Odysseus's situation was only slightly different. He, like Telemachos had his worries about family-life, and his kingdom at stake, but also had concerns about his wife, possibly triggered by the mention of Agamemnon's by Proteus, who was killed by the hands of his own wife.

Julius Nyerere & African Socialism Essay

Socialism as quoted by Julius Nyerere as â€Å"the attitude of the mind† and often defined as a system of social organizations producing and distributing goods that are owned collectively or by a centralized government that often plans and controls the economy. In a socialistic society it is the attitude of mind, and not the rigid adherence to a standard political pattern, which is needed to ensure that the people care for each other’s welfare. In order to understand African socialism better we need to clearly understand how a society operates. In a socialist society the means of production are owned by the workers rather than by a rich minority of capitalists or functionaries. Such a system of ownership is both collective and individual in nature. Socialism will not be a utopia simply created in people’s minds. It will be the product of economic and social development. Now African socialism is a belief in sharing economic resources in the â€Å"traditional† African way. Many African politicians supported the â€Å"traditional† African way that is often referred as African Socialism. Julius K. Nyerere who was one of them who later became the President of Tanganyika (East Africa) in 1962 and was President of Tanzania (Tanganyika and Zanzibar) from 1964 to 1985. A Socialist and Pan-Africanist, was a force for moderation and racial harmony. He worked in close cooperation with the British authorities in his homeland. However, advocates of African socialism claimed that it was not the opposite of capitalism or a response to it, but something completely different. They claimed their socialism was merely recapturing the spirit of what it was to be African. Many believed that Africa was far behind capitalist states in terms of economic development and to compete fairly with them they needed a different appeal to unite them. German economist Werner Sombart in 1906, in his definition of American Capitalism stated, â€Å"America is the Canaan of capitalism, its promised land. † Capitalism is regarded as an economic system distinguished by private ownership of the means of production and the production of commodities for sale. The modern business corporation is an original creation of the American imagination. It was first fashioned to extend local markets, then, it became an indispensable means to create a national market. Both American industrialization and capitalism were crucially dependent upon the corporate form of organization. Thus arising a political process whereby economic power can become translated into governmental policy. American capitalists had almost a free hand in gaining control of a country unimaginably rich in natural resources. In straight-out contests of strength with both organized and unorganized workers American capitalists usually triumphed. The very philosophy of individualism facilitated the adoption of slavery in the American history. President, Nyerere had to steer a difficult course by the late 1960s Tanzania was one of the world’s poorest countries. Like many others it was suffering from a severe foreign debt burden, a decrease in foreign aid, and a fall in the price of commodities. The objective of socialism in the United Republic of Tanzania is to build a society in which all members have equal rights and equal opportunities, in which all can live in peace with their neighbors without suffering or imposing injustice, being exploited, or exploiting. The nature of Tanzanian society was on rural development. People were encouraged (sometimes forced) to live and work on a co-operative basis in organized villages or ujamaa (meaning ‘family hood’ in Kishwahili). It is important to realize that the policy of ujamaa Vijijini is not intended to be merely a revival of the old settlement schemes under another name. The Ujamaa village is a new conception; â€Å"Understanding that what we need to develop is people, not things, and that people can only develop themselves. † Ujamaa villages are intended to be socialist organizations created by the people, and governed by those who live and work in them. They cannot be created from outside, nor governed from outside. No one can be forced into an Ujamaa village, and no official at any level can go and tell the members of an Ujamaa village what they should do together, and what they should continue to do as individual farmers. According to Julius Kambarage Nyerere â€Å"I have said that a millionaire can be a good socialist. But a socialist millionaire is a rare phenomenon. Indeed he is almost a contradiction in terms. The appearance of millionaires in any society is no proof of its affluence; they can be produced by very poor countries like Tanganyika just as well as by rich countries like the United States of America. † He also goes on to say that a millionaire can be a socialist; he may value his wealth only because it can be used in the service of his fellow men. But the man who uses wealth for the purpose of dominating any of his fellows is a capitalist. On the other hand the white population of the U. S. A. descended from European immigrants who, most energetic and independent elements of their peoples, crossed the ocean to escape oppression, persecution and poverty. From the first settlements on the Eastern coast, with its commercial towns, they gradually expanded over the entire continent, exterminating in continuous fight the Indian natives, clearing the forests, subduing the wilderness, and converting it into cultivated land. American capital soon played the chief role in opening up the Western wilds by digging canals and building railways. Through its friends in Congress it was rewarded for this service to the nation with big allotments for exploitation, paying not more than the bribes, the form by which the politicians got their share of the profits. Founded on the principles of individual liberty and self-determination the nascent United States provided fertile ground for the seeds of Capitalism. Conditions such as slavery, explosive growth in the number of banks, America’s powerful drive to expand its territory, neutral trade during the war between Great Britain and France, and ultimately, the Industrial Revolution enabled American Capitalism to grow into a thriving jungle. Ayn Rand, a Russian-born, American novelist and philosopher says,† America’s abundance was created not by public sacrifices to the common good, but by the productive genius of free men who pursued their own personal interests and the making of their own private fortunes. â€Å"