Low Cost and Scheduled Airlines Case Study Example | Topics and Well Written Essays - 1000 words

Low Cost and Scheduled Airlines - Case Study Example The core benefit of this service is that it's a cheaper way to travel and it began in the USA mainly to maintain a low cost structure compared to the competitors. Their main aim is to have the lowest cost structure and they charge for the food ordered during the flight. The actual product includes the packaging, branding, quality, features and design. The low cost airlines are a service so it does not have packaging but branding is essential for any company to instigate brand loyalty and to attract customers. Branding is essential to create high brand equity in the market since the more powerful and valuable a brand is the more will increase the market share. Quality can be an issue in this case because all they provide is a safe flight and food that might not be up to higher standards. When they do not provide passenger services then quality is of question here but people mainly come to them for cheap fares and they are not concerned with the other services. These airlines provide s ingle passenger class only. Finally, the augmented product includes delivery, warranty and after sales services. Low cost airlines deliver at cheap prices without much of services to attract the masses and they do not provide much of the after sales services but the delivery of the product is equal to the expectations of the consumers since they want cheap fares. On the other hand, scheduled airlines are e... e core benefit of this service is the choice of traveling in comfort with innumerable choices to be in luxury and bliss, plus it also allows people to travel on a cheaper price compared to business class and it provides lesser services or choices to travel in luxury. They charge enough on the ticket to provide food and other luxurious services. The actual product is about branding without which these airlines can not survive and make a name in the market. They need high brand equity to achieve a huge market share. They have to maintain good quality to maintain high brand equity. The augmented product is about delivery and after sales services. They deliver according to the customer's expectations and they do give after sales services like car service on landing in the destination. The Price The low cost airlines provide low fares. Their main pricing goal is current profit maximization. In this case they estimate what demand and costs will be at different prices and they choose the best option to attract more customers and earn high profits. But they also aim to achieve market share leadership through lowest costs, lowest prices and highest long-run profits. They have mainly stressed on competition based pricing that is setting prices based on what the competitors charge. The main aim is to have a lower cost structure compared to competitors in order to attract more customers. The scheduled airlines provide expensive fares that range between business class and economy class. These airlines have product quality leadership as their main pricing goal. They charge high prices to cover high performance quality and other costs. These airlines have value-based pricing approach that is setting prices based on the buyer's perceptions of value rather than on seller's cost.

American Sci-fi Films of the 1990s Research Paper

American Sci-fi Films of the 1990s - Research Paper Example At this point, we saw more realistic and even more grandiose computer-generated images on our movie screens. The digital world made the impossible possible and exemplified the reality that anything and everything can now be translated to the big screen (Hall and Neale, 253). Since everything can be done in computers, what was previously ‘unfilmable’ was now a distinct possibility for many filmmakers. Through digital technology, battles in space through the film ‘Starship Troopers’ became a much more realistic fare and floating on air became less of a wire-controlled exercise in the movie ‘The Matrix.’ The themes for most science fiction movies however, for the most part, retained elements of violence seen in earlier science fiction movies. Violence in these movies is in its bigger picture. It is important to note that the 1990s also signify the post Cold War period, and yet, the threats of smart bombs and high technology weaponry very much grace these 90s movies (Rukeyser, 45). We also see the media spectacles of the Gulf Wars translated in movies, and later, that of the war on terrorism. â€Å"The Cold War may be over and the threat of a nuclear war lessened, but in both the fantasies of science fiction film and the â€Å"reality† of the news, violence is in our face – enhanced and perfected with military and media technology, but violence nonetheless† (Rukeyser, 45). These new avenues for entertainment have taken on more picturesque images in film and the popularity of such films has grown even more. As the violence has evolved throughout the years, the darker and more violent image of the future have also been seen in these films. These darker and more violent depictions highlight the post-apocalytic images of the future, easily brought to life in the screen through computer-generated visual effects (Cornea, 161). These futuristic images are apparent in the movies, ‘The Matrix’, ‘ Johnny Mnemonic’, ‘The Lawnmower Man’ series, and ‘The Net.’ These movies also portray the fact that the violence and the darkness is not just in our surroundings or our environment, but they are also in us. Through these depictions the science fiction genre now exemplifies how the current reality can be thrown off guard and can be differentiated from our realistic experience of the world (Bould, 139). On a positive note, these movies seek to present a postmodernist view of the world, a rejection of all things modern and how such technological developments have ran rampant over the world and over our lives. To a certain extent, even as they utilize the modern technologies introduced in recent years, these same technologies are also depicted for the problems they have and will bring to humanity (Lopez, 137). ‘The Matrix’ movies especially show how technology has led to more problems and issues. These problems and issues created by technol ogy lend support to the importance of returning to the past and the traditional way of doing things (Rukeyser, 46). They present opposing views on modernism, portraying modernism as one which can potentially be more trouble than it is worth. The 1990s science fiction movies use different modern functions and powers. They often bring together opposing elements. In other words, science fiction is a double-edged sword (Schummer, 142). In effect, it can sometimes be rational and emotional, and it sometimes coordinates the secular and the scientific

This Mystery Shopping Activity Tourism Essay

This Mystery Shopping Activity Tourism Essay 1.1 Introduction In this assignment, mystery shopping will be shown with relation to three types of hospitality businesses. Mystery Shopping activities should be carried out at regular intervals. Clear performance objectives can be set by the definition of benchmarks which can serve both as possible motivators within the company and also as a parameter in a bonus or commission system. Mystery shopping or a mystery consumer is a tool used externally by market research companies or watchdog organizations or internally by companies themselves to measure quality of service or compliance to regulation, or to gather specific information about products and services. The mystery consumers specific identity is generally not known by the establishment being evaluated. In addition, temporarily implemented Mystery Shopping studies can be made use of to check and evaluate individual marketing activities. Beside that, secret shoppers is a tool used by businesses and market research companies to measure quality of retail service or gather specific information about products and services. Then, mystery shoppers posing as normal customers perform specific tasks-such as purchasing a product, asking questions and then provide detailed reports or feedback about their experiences. Mystery shopping is increasingly used to provide feedback on customer services. Furthermore, some tasks that may be carried out by the mystery shopper include taking photographs, measurements, consumer count or inventory count and so on. Recording the time it takes to complete a specific task with a timer is also a possibility. In todays society, quality customer service depends on whether a business keeps their customers or loses them. However, good marketing brings customers in, but its great service that keeps them. Finding out whether a business is doing well or not can sometimes be difficult to figure out, but the imperative factor is to know what customers think is important, what they want, and what to improve if necessary and a lot of things. The best way to find out this information is create a customer survey. By creating a customer service survey, customers are able to write down their views and opinions about the service they have received. Whether it is good or bad, the comments can then be used to reflect on what may need to be done to the business to either improve it or maintain its standards. 1.2 Comprehensive survey for this mystery shopping activity http://t2.gstatic.com/images?q=tbn:ANd9GcSPUAhK0xbQx-o6TZSV2xMSeGzoj3D3IVJQG822verXBfitYDuR http://t2.gstatic.com/images?q=tbn:ANd9GcSiOIvP7O9E5Soe8MMpo6Gp39HebiKkXE55RlG8hTgY_fNEWYUFAw http://t3.gstatic.com/images?q=tbn:ANd9GcTdbyWhLF7GMsZO2UcsKdldHa2l8IgJ2bt6fb8GqyxOwJnmYP6b This mystery shopping activity is done at three types of hospitality business that is in Pizza Hut, McDonalds and KFC. Interims of service that is competence, friendliness and waiting times , the quality of advice and product recommendation or food survey , living from service standards or perfect , cross selling. Beside this, presentation of goods or foods that want to serve to the customer , availability of goods in the range , indication of prices with a reasonable price for customer, cleanliness in surrounding area and implementation of marketing activities. Essentially, the types of questions that should be asked in the survey such as: (Please tick ) the answers below:- 1. Was the exterior to the restaurant clean? Clean ( ) Good ( ) Poor ( ) 2. Were they greeted in a friendly manner? Excellent ( ) Good ( ) Poor ( ) 3. How long the waiter or waitress take time to served the food ? Less than 15 minutes ( ) More than a minutes ( ) Above one hours ( ) 4. Was the temperature comfortable? Hot ( ) Cold ( ) Warm ( ) 5. Did the staff listen or pay attention carefully or not when the customer ask for something? Good ( ) Poor ( ) Very Poor ( ) 6. Was the restroom clean and fully stocked? Clean ( ) Poor ( ) Very Poor ( ) 7. Cleanliness of the staff ? Very Clean ( ) Good ( ) Poor ( ) 8. The place look like professional ? Yes ( ) No ( ) Balance ( ) 9. How knowledgeable were the customer service representatives at the organization? Very knowledgeable ( ) Good ( ) Poor Knowledgeable ( ) 10. How helpful were the customer service representatives at the organization? Very helpful ( ) Good ( ) Poor ( ) If there is any comments please write here:-________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ 1.3 Conclusion One on one appraisal of each consultants Mystery Shopping report would be recommended to highlight their efficiencies or deficiencies with a view to improving their overall performance in their future dealings with prospective buyers. This could be done at a meeting between your Sales Manager and your Consultant. The National Sales Manager can also perform one on one appraisals of the Mystery Shopping experience with their District Managers to discuss the overall performance of their area of responsibility. The mystery shopper will then give a feedback report to his/her employer. Some tasks that may be carried out by the mystery shopper include taking photographs, measurements, consumer count or inventory count. Recording the time it takes to complete a specific task with a timer is also a possibility. Good marketing brings customers in, but its great service that keeps them. Posing as a customer, a researcher then analyzes the experience, collecting data and rating the encounter based on those measures. Mystery shopping has become a popular market research tool for monitoring customer experience. This is very helpful to us to evaluate the mystery shopping activity. QUESTION 2 2.1 Introduction In this assignment, researched and factors in setting up a restaurant business are going to be explored , but also features such as demographics in attracting and identifying customers are going to be determined. There are many different aspects that need to be well thought of and considered when opening up any new restaurant. Before opening or starting a restaurant business, people are usually unaware of the high failure rate that can happen due to quickly knowing that there can sometimes be more work than they had originally anticipated, resulting in them believing that they are not suited to the restaurant business. Beside this, when open a new restaurant many things can be done with a proper planning, budgeting, having a procedure on how to do and other things. It is because will give a good result the end of a new restaurant and fell in a good appearance, environment, cleanliness, safe work, and a lot of things can be done here. 2.2 Need to consider when open the restaurant? Firstly, deciding on a restaurant concept which can brings of deciding what type of restaurant that want to open will depend of a variety of things. Often times people who want to open their own restaurant want to serve food of their like to cook, in an atmosphere they feel comfortable in. Moreover, other people are interested in Franchising. Restaurant franchises offer a number of benefits, including instant name recognition and built-in marketing. However, many restaurant franchises dont come cheap and owners must be willing to follow a stringent set of rules. Take a look of the examples are franchise vs. independent restaurants, how to become a franchisee and types of restaurants. Secondly, find a good restaurant Location on how the location is vital to the success of any restaurant. There are many factors to consider when searching or looking for that perfect restaurant location, including population base, local employment figures and accessibility. Beside this, once find that a perfect or best location, will need to make sure to negotiate the best lease possible for the new restaurant that are finding the perfect location, how to determine population base and on how to negotiate a lease information. Writing a business plan is a third step to prepare for one of the person to get interview with the bank, the person need to do their homework. Creating a business plan that outlines of the particular restaurant and how it will plan to make it profitable, will show the loan officer to mean business. Also make sure arrived at the bank with all the necessary paperwork, including personal income statements, tax returns and anything else the banker ask for like a the reason need a business plan, writing a restaurant business plan and be get ready for the bank interview. Fourthly, selecting the perfect restaurant name. However, the restaurant names may reflect a theme, a location, or simply be a play on words. The important thing to consider is the impression it will leave on customers. Select a name that will be easy to customers to remember and spell. Nothing is more frustrating than not being able to find a restaurant online or in the Yellow Pages because of the arent spelling it correctly of choosing a restaurant name and also restaurant names that inspire to the own restaurant and for the customer. Firth thing is writing the menu on what to be prepared for the customer on different types of theme and so on. The menu must is a huge part of your restaurant. After all, it is essentially why the customers keep coming back because the customer love the food. Not only this, the layout and design is just as important as whats listed on the menu. Avoid amateur looking menu designs, such as clip art or photocopied handwriting. Finally, knowing how to price the menu will help increase your profit margins, giving you more money to invest into a new restaurant and based on how the price of the menu, menu design and creativity and tips for the writing a restaurant menu and others. Lastly, the need to consider when it want to open a restaurant is equipping of the restaurant. Outfitting of the restaurant kitchen, dining room and bar is the largest part to start up budget. Moreover, shop around for bargain deals of used equipment and leased equipment. Also understanding needs and wants is important in avoiding the pitfalls of buying unnecessary furniture and equipment, which can set the way over budget. Begin with the basics, and once the have those you can pick up a few extras. For examples five tips for stocking of the restaurant, why need a POS System and benefits of leased equipment. 2.3 How can get the customer ? By forming strategic alliances event facilities. After a concert or sporting event, people are hungry and want to eat. Remember that people sometimes travel long distances for this event, do not want to go home with an empty stomach. Beside this, after the concert finished, the restaurant was packed with concert audiences. It can be do a part to promote upcoming events happening in the restaurant. Furthermore, participate in competitions one of the greatest ways to get media attention and therefore, to get the new business is to win the contest. Such as, enter the chef in a cooking contest. Read publication restaurant and browse the internet to find out about a contest that be may able to enter. If all else fails, create the own contest and invite local restaurants to participate. So even if you lose, the more still will generate great publicity and get new customers to the door. Demographics factors is the socioeconomic characteristics of a population articulated statistically, such as age, sex, occupation, religion, martial status, birth rate, death rate and income rate and others. Considering these factors when opening up a business like a restaurant not only helps the owner target specific customers, but can also be an advantage in the business environment itself. Moreover, determining whether or not an owner wants to have a family orientated restaurant over and above a fine dining restaurant usually targeted at adults only, is a prime example of how demographic factors can affect the choice of what type of establishment is going to be run. 2.4 Conclusion Overall of this assignment its a starting a restaurant business, owners and managers need to take into consideration the competitive industry that they are about to invest in. The performance of a given service may vary across service providers, service employees, consumers and service encounters. starting with a good concept will dictate the food menu, the location, the dà ©cor, and all other important facets of the business. Finally, in achieving a successful restaurant business and attracting and keeping clientele, strategies such as customer referrals, networking, merchandising and target marketing are inexpensive yet effective ways of doing so.

Songs can be Considered A Form of Modern Day Poetry Essay -- essays re

Can Songs be Considered A Form of Modern Day Poetry? Yes. The youth of today are more likely to have a favourite song rather than a favourite poem. Although the feelings and hidden meanings expressed in songs are often unacknowledged by the listener, they often have qualities that resemble those of a typical poem. These qualities include word choice, mood, hidden meanings and imagery. Using the songs â€Å"Luka† by Suzanne Vega, and â€Å"April Come She Will† by Simon and Garfunkle, I am going to prove that songs can be considered a form of modern day poetry. To indulge the reader, poets can use contradictory language and specific word choice to contrast the themes of the poem thus creating a particular mood. Suzanne Vega demonstrates this in the song â€Å"Luka†: Verse 1 My name is Luka I live on the second floor I live upstairs from you Yes I think you’ve seen me before The impression created in verse 1 is that of a typical â€Å"boy meets girl† theme. This is motivated by the pleasant, happy music and the lyrics indicating a girl meeting a boy. As the song continues, verse 2 indicates that their initial impression was incorrect: Verse 2 If you hear something late at night Some kind of trouble, some kind of fight Just don’t ask me what it was Just don’t ask me what it was Just don’t ask me what it was The music continues to be pleasant, which contrasts to the bad vibe given off by the lyrics in verse 2. The songwriter is using contrasting themes which is a technique often used in poems. The repetition of â€Å"Just don’t ask me what it was† encourages familiarity for the listener as, because it is repeated, it is what the listener remembers about the song. Furthermore, it adds more emphasis to the indication that ... ... been related to months and seasons maybe because the hidden message of the song is that love is a never-ending cycle (like the seasons). This would indicate that love will inevitably die, but be reborn again, perhaps in the form of someone else or with the same person. This then could lead to the theory that this song was written to be compatible with everything that is loved i.e. a new job, new friend etc and that it often deteriorates through familiarity. Such depth in a song compares to the depth of a poem in terms of the hidden meanings and imagery. I believe that songs can be considered a form of modern day poetry as they often effectively use poetic techniques such as repetition, imagery, contrasting themes, effective word choice and climaxes. The two songs that I have discussed clearly possess and demonstrate these qualities and how effective they are.

A Moral Solution to the Organ Donor Shortage Essay

In Alexander T. Tabarrok’s essay, â€Å"A Moral Solution to the Organ Shortage† Alexander explains ways to find solutions to the organ shortage by proposing a fair way to go about qualifying for organ transplant. Gary Becker suggested that paying a good amount of money toward funeral cost of organ donors would help and encourage people to donate their organs. The new rule that Alexander wanted to proposed is the â€Å"no -give – no – take† rule. Under this rule in order to receive an organ a person must have previously signed their organ donor card. Under â€Å"no – give – no take†, signing your organ donor card is like joining the club, the club of people who have agreed to share their organs. People have different views when it comes to donating organs. Some have their doubts about becoming an organ donor because of their religious beliefs, while others thinks that by signing an organ donor card it’s same as buying an i nsurance . NOTE In some ways I agree with Alexander on this new rule that he has proposed ( UNOS). Having a donor card is a good idea to make sure there is surplus of organs able to be donated. I’m not convinced that the â€Å"no- give no – take† rule will be productive to solve the shortage of our organ donors any time soon, since Alexander’s essay was based on suggestion. As for myself I would have doubt of donating my organs not because of my religion or beliefs, but the trust of the people that handling my organs. This essay has inspired me to rethink being an organ donor because of the problems of most organizations. In my own views, paying tremendous amounts of money to organ donors to saved someones life is a wrong way to help people that in need. As time progresses and suggestions becomes reality I would be more confident in donating my organs.

Strategic Analysis of ALDI Essay

1. Introduction Albrecht Discount Inc., globally known as Aldi, is a German based family owned global discount chain of supermarkets. Aldi constitutes of two independent groups, that are Aldi Nord (North) and Aldi Sud (South) legally and economically independent but family related (Aldi Sud Business, 2013). It is the market leader in the industry of international grocery retailing and owns and operates chain of discount grocery stores in Europe, Australia and United States. It’s stores retail and supply general merchandise and food including meat products, fresh meat, frozen and refrigerated foods,  sweets and snacks, dairy and bakery products, beverages and pantry items in addition to home care and personal care products (Report Linker, 2013). In the present Aldi Inc.’s strategic analysis is carried out to identify and evaluate its strategies against its business environment to critically analyze whether the strategies pursued by Aldi are effective in maintaining its market leader position or not. In doing so environmental analysis of international grocery retailing industry is carried out to bring about the opportunities and threats the industry is facing and SWOT analysis is carried out to shed light on Aldi’s strengths and weaknesses and opportunities and threats the industry is facing on the whole. Aldi’s strategies are then evaluated against the SWOT to analyze the effectiveness of its strategies in maintaining its market position. 2. Brief Background on Aldi Aldi Inc., was founded by Karl Albrecht and Theo Albrecht in 1913 in Essen and started trading in bakery products, later in 1914 Karl Albrecht’s wife Anna Albrecht opened the first grocery store. In 1919 they acquired a commercial and residential building in Essen and enlarge the grocery store. 1945 the brothers took over the family business and opened more stores and by the end of 1948 they were four Albrecht stores. In 1954 Albrecht expanded further more and opened its stores outside Essen and branch enlargement took place with 77 stores with core business as food self service. In 1961 two legally separate groups were established known as Aldi Sud and Aldi Nord yet the family remained connected. 1962 first ALDI – Albrecht Discount branched was opened in the discount principle and entire branch network was changed into ALDI format. Gradually internationalized its business by first entering in Austria with acquisition of Hofer retail chain, then further expanded in Germany, entered in the United States, UK, Ireland, Australia, Switzerland, Slovenia and Hungary, in that order (Aldi Sud Facts and Figures, 2013). Aldi Group is active in nine European countries and in European market is one of the leading retail companies and a well known retail chain all over the world. Aldi Sud is into retail food trade and comprises of 31 companies located in Southern and Western Germany and Aldi Nord operates its own branch network of 2500 outlets in the northern and eastern Germany (Aldi Sud  Business, 2013; Aldi Nord, 2013). Aldi Group has more than 10000 stores worldwide with annual turnover of 75bn yet its core market is Germany (Fitzgerald, 2013). Aldi stores are known for their efficiency, no frills stores, low levels of staff, few big brand names and modest opening hours (Fitzgerald, 2013). Their main core competency is cut price through cost cutting, selling cheap and low quality products(Grocery.com, 2013) and its mission is â€Å"simply smarter shopping† (Aldi US, 2013). Aldi’s big rivals include TESCO, Morrison’s, Sainsbury, Asda, Carrefour and Lidl (Sky News, 2013; Butler and Bowers, 2013). The Albrecht’s has expanded into new territories but remains a closely guarded company and never disclose its profit margins citing commercial sensitivity and do not share much information with other branches managers (Fitzgerald, 2013). Aldi has to triple its staff and check outs to cater to the extra one million customers coming to its 500 stores in UK. The firm shunned premium big brands for its cut price own versions of premium ranges to attract new customers looking for cheaper products (Steiner, 2013). The retail market is seeing intense competition and big retail supermarkets are losing market share to discount stores and up market grocers such as Aldi all over Europe and other international markets. 3. Market Identification of Aldi It is an intensely family owned private company. Both Aldi Sud and Aldi Nord operate in retail markets however Aldi Nord mainly in Europe whereas Aldi Sud operates in the United States and Australia among other international locations. It has Aldi stores are located in Germany, Austria, Australia, Denmark, France, Belgium, Greece, Ireland, Hungary, Netherlands, Luxemburg, Poland, Slovenia, Portugal, Spain, Switzerland, United states operating in 36 states and United Kingdom (Grocer.com, 2013). Its customers are mainly ‘do it yourself’ shoppers and bargain hunters (Grocer.com, 2013). Aldi in 2013 has outshined its biggest rivals in UK with doubling in annual profits and sales increase of 40.6% being a cut price grocer and holds 3.7% of market share in UK (Steiner, 2013; Sky news, 2013). It earned profit of 157.9 million in 2012 from 70.5 million in 2011 and sales increased from 2.7 billion in 2011 to 3.8 billion in 2012. It opened 34 new stores that were crucial in its strong performance in 2012 (Steiner, 2013). Aldi Ireland revenues increased by 30.7% in 2012 outstripping its German rival Lidl,  opened 3 more stores, in addition to 40 stores in Ireland that are being refurbished or extended. Together Lidl and Aldi control 12.5% of Irish grocery market (Fitzgerald, 2013). Aldi United states’ annual revenue is $68,700 million (U.S) with 1400 stores in 36 states employing 11,000 employees (Grocer.com. 2013). Aldi SUD in Germany consists of 31 independent companies, with more than 1820 branches, employing more than 33,600 employees (Aldi Facts and Figures, 2013). Aldi Nord operates in Eastern, Western and Northern Germany with around 2500 outlets (Aldi Nord, 2013) 4. Environmental Analysis International grocery retailing industry is facing intense competition and become a real battleground, retailing giants are offering plenty of price discounts to attract customers, that is seriously impacting their suppliers and pressure to regulate the sector is growing (Fitzgerald, 2013). The following section analyzes in detail the opportunities and threats the retail grocery industry is facing through PESTEL Analysis. 4.1 PESTEL Analysis 4.1.1 Political factors Legislators of European countries are being pressurized to regulate the retail market because intense competition and price cut is negatively impacting the manufacturers and suppliers (Fitzgerald, 2013). Retail companies are being accused of paying the lowest price to their suppliers, which is harming their business seriously, and are on the brink of collapse. Political campaigns are being carried out and interest groups are asking customers not to buy products their because of that (Osborne, 2012). 4.1.2 Economical factors Economic slowdown in developed countries and Euro zone crises has affected the industry greatly as customers with less income to dispense are forced to shop for cheaper and retailers owned goods swallowing their brand and switching from expensive brands. High flying retail giants are feeling the pinch as there was considerable drop in their sales and profits and more and more customers are switching to discount stores and up market grocers  (Butler and Bowers, 2013). Cash strapped households due to shrinking in their budgets as a result of high inflation that is not proportional to wage rises are flocking to discount stores (Sky News, 2013). The below graph shows consumer retail expenditure five year growth rate of UK (Verdict, 2009). Figure 1: Total consumer retail expenditure of UK- five year growth rate (Verdict, 2009) Burgeoning population, rise in immigration, developed nations beginning to emerge from recession and economic recoveries, falling in unemployment rates, urbanization leading to renewal of growth in retail industry. Disposable income, GDP and consumer spending are the macroeconomic factors that affect retail industry directly (Reuters, 2012). Asia pacific is dominating the industry as it driving the increase in global retail trade, representing 35% of the global retail market and will grow highest among all other regions between 2012 and 2017 (Reuters, 2013). 4.1.3 Social and cultural factors Consumers are becoming more and more socially responsible and considering increasingly the social impact of their purchases and supporting mainly those retailers who are also socially responsible and assert sustainable practices. Consumers are avoiding retailers who they think are irresponsible, encourage sweat shops, exploit suppliers, and outsource manufacturing and carryout unethical practices. Consumer preferences are changing more rapidly than ever before and retailers are struggling to cope up with their changing preferences. Economic recession is giving rise to generational differences, as whole generation experiencing recession are using money more cautiously and less credit cards (Mack, 2013). 4.1.4 Technology factors Technology is changing the way consumers shop retail products and the way retail businesses operate in bad and good ways. Online retail shopping has increased in manifolds along with creating more awareness among consumers, leading to price comparisons to find the best deal across the world. It is presenting both opportunity and threat as technology is helping in boosting retail stores performance but also forcing them to adapt to new changes  brought forward by technology or else give way to competitors who are doing so (Mock, 2013). Technological growth such as mobile commerce has provided opportunity for retailers to better interact with customers and give them more convenience and better service (Reuters, 2013). RFD Radio Frequency Identification Device has facilitated end to end tracking of ingredients and better stock control through business intelligence tools (PWC, 2013). 4.1.5 Environmental Factors Retail chains are being pressurized to be more socially responsible and adopt sustainable practices as their low price strategies are affecting the suppliers and the environment as a whole. Retailers are also accused of harming the environment as they are blamed for increased consumption of food products and causing global food insecurity and also for increased used of harmful plastic material for packaging. They are also accused of indulging in unethical practices to drive the products prices down and not caring for the environment (UNEP, 2003). To minimize this negative trend retail chains have to sustainable materials for packaging and carrying and in turn putting that costs on consumers (Osborne, 2012). 4.1.6 Legal factors Tax issues such as VAT, excise duties, environmental and property taxes, HR taxes, cross border transactions tax issues, corporation taxes and compliance with laws and legislations and increasing costs of corporate social responsibility are presenting challenges to retail industry and increasing their cost of operations. Accounting regulations like adopting of IFRS and passing of Sarbanes Oxley legislation on demand of stakeholders heightened the regulatory pressures on the retail and consumer industry (PWC, 2013). 4.2 Key Trends affecting the industry Consumers are switching from up market retail chains to low price retail chains (Butler and Bowers, 2013). Price inflation of retail products putting more pressure on retailers to decrease its impact on customers and cut down on profit margins (Butler and Bowers, 2013). E commerce and M commerce are increasing leading to increase in online retail (Mack, 2013) Customers are more aware and comparing prices online to gain best deal (Mack, 2013) Burgeoning population, urbanization, economic recovery are renewing growth  in retail sector (Reuters, 2013). Consumers preferences are changing more rapidly than before (Mack, 2013) Consumers are seeking more convenience and using other mode of payments like credit card, debit card etc. (Osborne, 2012; Mack, 2013), New consuming habits such as value shopping in FMCG products and clothing, luxury shopping in furniture and technology (PWC, 2013). Trends towards retailers being more socially responsible and sustainable retailing (PWC, 2013). Consumers supporting local suppliers and against outsourcing (Fitzgerald, 2013) Customer polarization that is have are shopping in up market stores, have not shopping more in low price stores, driving the growth of the industry (Sky News, 2013). Global retail trade growth is driven by Asia Pacific markets and will see highest growth rate. 5. SWOT Analysis 5.1 Strengths Highly efficient stores, staff levels are kept low, operates with only few big brand names and opening hours are fairly modest (Fitzgerald, 2013). High brand value and large extended network of branches covering major developed markets in the world. Continuous expansion in new markets to cater to increased footfall of customers. Basic packaging and limited advertising to keep costs low. Cost advantage derived from economies of scale (Fitzgerald, 2013) Own cheap luxury brands giving stiff competition to expensive luxury brands (Fitzgerald, 2013) Increase in sales mainly coming from new stores (Butler and Bowers, 2013) Discount pricing are impressively cheaper attracting shoppers away from bigger retail giants such as Tesco, Sainsbury Cherry pick bargains offered by Aldi increasing the number of shoppers (Butler and Bowers, 2013) Robust growth over the years (Fitzgerald, 2013) Good for buying staples (Ferruza, 2011) 5.2 Weaknesses In England Aldi does not accept payments through credit card restricting customers who want to pay through credit cards (Osborne, 2012) Charges  customers for a carrier bag (Osborne, 2012)  Low staff levels not able to handle increased customer footfall Reputation damaged because of recent horsemeat scandal and employee spying accusations (Snoops, 2013; Stuart, 2013; The Guardian, 2013). Serious limitation of product selection only 2800 products varieties are offered while other supermarket offer 30000 and shopping cart has to be rented for a quarter, (returned later after cart is kept back) (Grocery.com; Ferruza, 2013) Less glamorous store , interior ambience of stores is not so great, stores are like warehouses, does not decorate shelves, spends very less in packaging, stocking and transportation (Grocery.com, 2013) Stocks low quality products (Ferruzza, 2011). Less glamorous stores, ambience not attractive in stores, it’s like warehouse style store, no frills Stocks low quality products Limited product selection Low level of staff Charges for carrier bags and shopping carts Does not accept payment through credit cards Reputation damaged due to horse meat scandal and employee spying Sells mostly own brands label and limits the number of outside brands Very low advertising and store promotion and only in-house advertising Opportunities Economic recovery in development markets, burgeoning population, urbanization renewing growth Technology such as m-commerce and e-commerce increasing sales Customer polarization increasing discount retailers sale Economic slowdown in the past, inflation and high unemployment rate forcing customers to buy cheaper products Global retail trade growth is high in Asia pacific region and driving the market Price inflation moving customers to discount stores Threats Customers inclination towards sustainability, corporate social responsibility and preference to local suppliers threatening the cost efficiency of discount stores Taxation, and heightened regulations Technology creating operational complexities Consumer changing consuming habits and preferences threatening the industry 6. Identification and evaluation of the Strategies pursued by Aldi Aldi’s competitive strategy is to gain competitive advantage over its rivals through efficiency. Its competitive strategy is low cost leadership that it derives from economies of scale, cost efficiency, low staff level, low quality products, limited product selection and high bargaining power with suppliers (Fitzgerald, 2013; Butler and Bowers, 2013; Steiner, 2013). Its strategy to achieve its mission of simple smarter shopping it has implemented the following strategies in view of its changing business environment. 6.1 Strategies implemented by ALDI Constant rolling out new stores with increased size between 10,000 and 15,000 sq.ft in all countries it is operating (Fitzgerald, 2013). Backward vertical integration, producing cheaper luxury products to attract consumers who are  switching from expensive luxury brands (Grocery.com; Fitzgerald, 2013). Renovation and expansion of existing stores (Fitzgerald, 2013). Started using advertising campaigns to attract more up-market customers to promote its own luxury brand labels deviating from its past strategies (Butler and Bowers, 2013). Increased checkout points and staff level in its store to cater to extra one million customers coming to its stores all over Europe (Steiner, 2013). Delivering high value to customers who are looking for cheaper deals through efficiency in transportation, presentation and packaging (Steiner, 2013). Online sales and apps for attracting internet savvy consumer and engaging customers through social networks (Aldi App, 2013). Sustainable sourcing and reducing environmental impact through recycling and minimum packaging (Aldi Nord, 2013). 6.2 Critical Evaluation of the Strategies In view of Aldi Inc.’s SWOT and the strategies it has implemented it can be said that Aldi’s strategies are in sync with its changing business environment and taking advantage of its strengths and minimizing its weaknesses. By expanding its store sizes, renovating and redecorating its existing stores and opening new stores of bigger sizes it has tried to minimize its weakness of less glamorous warehouse type store. And by opening more stores consistently over the years it is taking advantage of burgeoning population that is resulting in increase of customer footfall (Fitzgerald, 2013). It has also taken care of its weakness of low staff level and increased staff level and checkouts to cater to increased customer footfall (Steiner, 2013). It has started rolling out advertising campaigns for promotions to attract luxury customers and elevated its market positioning by retailing luxury products and changing its reputation of a retailer of low quality products (Butler and B owers, 2013). Aldi is gradually moving from discount store principle to convenient store principle, opening stores in affluent locations, offering luxury products, delivering both value and quality to broaden its consumer base (Skynews, 2013). Through vertical backward integration it has taken advantage of the opportunity presented by the consumer shifting from expensive luxury products to comparatively cheaper luxury products by producing its own luxury label offering them at less price. Broaden its customer base by opening stores in affluent  locations and changing its positioning from a discount store to a convenient store, this is to take advantage of opportunity presented by economic recoveries of developed countries. It has sustained its cost efficiency competitive advantage by lessening costs on packaging, transportation and offering cherry deals. Aldi apps facilitate m-commerce, and it also sells online and interacts with customers using social networks, thus it is taking advantage of op portunities presented by digital media technology. It has minimized threat presented by environmental factors by adopting recycling and has become more socially responsible by adopting sustainable practices for sourcing to minimize the threat presented by customers inclination towards sustainability. However Aldi has not fully taken advantages of other opportunities such as taking advantage of growing Asia Pacific market, it is operating only in Australia and has not yet entered Asian countries where high growth is expected and many governments have opened foreign direct investment in retailing. Price inflation of products and heightened laws and regulations will threaten its cost leadership strategy and in future might increase its operational costs and it may not be able to sustain its competitive strategy for long however it has not taken any measures to address these threats. Increasing staff level will increase its labor costs adding to its operational costs further. 7. Conclusion Aldi Inc. is evolving and implementing strategies to take advantage of opportunities and thwart threats presented by its environment by exploiting its strengths and reducing or eliminating its weaknesses. It has resulted in success as Aldi has experienced great success in 2013 with increased profit and sales compared to other supermarket chains however it may not be able to sustain its competitive advantage for long because prices and costs are increasing and profit margins are decreasing with retail market being saturated in developed countries, it has to expand its operations into new markets for sustaining growth and maintaining market leader position. 8. References Aldi App, (2013), Smart Phone, Aldi App, Aldi Us, Available at https://www.aldi.us/en/services/smartphone-app/, Accessed 25 November, 2013. Aldi Nord, (2013), â€Å"Business†, Aldi Nord, Available at http://www.aldi-nord.de/unternehmen.html, Accessed 28 November, 2013. Aldi Sud Business, (2013), â€Å"Aldi Sud Business†, Aldi Sud, Available at https://unternehmen.aldi-sued.de/de/ueber-aldi-sued/unternehmen/, Accessed 24 November, 2013. Aldi Sud Facts and Figures (2013), â€Å"Aldi Sud Fact and Figures†, Aldi Sud, Available at https://unternehmen.aldi-sued.de/de/ueber-aldi-sued/unternehmen/daten-und-fakten/, Accessed 21 November, 2013. Aldi US, (2013), â€Å"Aldi US Corporate†, Aldi Us, Available at https://corporate.aldi.us/, Accessed 27 November, 2013. Butler, S., and Bowers, S., (2013), â€Å"Britain’s big supermarkets lose ground to cut price rivals and up market grocers†, The Guardian, Available at http://www.theguardian.com/business/2013/nov/19/britain-supermarkets-market-share-fall-tesco-sainsburys -lidl, Accessed 22 November, 2013. Ferruzza, C., (2011), â€Å"Forget Trader Joe’s let’s hear it for Aldi†, Pitch, Available at http://www.pitch.com/FastPitch/archives/2011/07/18/forget-trader-joes-lets-hear-it-for-aldi, Accessed 19 November 2013. Fitzgerald, K., (2013), â€Å"Germany the history of Aldi Supermarkets†, Meat Trade News Daily, Available at http://www.meattradenewsdaily.co.uk/news/300413/germany___the_history_of_aldi_supermarkets_.aspx, Accessed 23 November, 2013. Grocery.com, (2013), â€Å"Aldi Foods†, Grocery.com, Available at http://www.grocery.com/aldi-foods/, Accessed 27 November, 2013. Mack, S, (2013), â€Å"Social Factors Affecting Retail Business†, Small Business Chron, Available at http://smallbusiness.chron.com/social-factors-affecting-retail-business-71662.html, Accessed 23 November, 2013. PWC, (2013), â€Å"Industry Issues†, PWC, Available at http://www.pwc.co.uk/retail-consumer/issues/retail-and-consumer-ind ustry-issues.jhtml, Accessed 22 November, 2013. Osborne, H., (2012), â€Å"The Aldi Experience: Supermarket shopping with a difference†, The Guardian, Available at http://www.theguardian.com/money/blog/2012/oct/08/aldi-supermarket-shopping-difference, Accessed 25 November, 2013. Reportlinker, (2013), â€Å"Aldi Inc. – Strategic SWOT Analysis Review†, Report Linker, Available at http://www.reportlinker.com/p0500369-summary/Aldi-Inc-Strategic-SWOT-Analysis-Review.html, Accessed 29 November, 2013. Reuters (2013), â€Å"Research and

Meaning and History of the Term Robber Baron

Meaning and History of the Term Robber Baron Robber Baron was a term applied to a businessman in the 19th century who engaged in unethical and monopolistic practices, utilized corrupt  political influence, faced almost no business regulation, and amassed enormous wealth. The term itself was not coined in the 1800s, but actually dated back centuries It was originally applied to noblemen in the Middle Ages who functioned as feudal warlords and were literally â€Å"robber barons.† In the 1870s the term began to be used to describe business tycoons, and the usage persisted throughout the rest of the 19th century. The late 1800s and the first decade of the 20th century are sometimes referred to as an age of robber barons. The Rise of Robber Barons As the United States transformed into an industrial society with little regulation of business, it was possible for small numbers of men to dominate crucial industries. Conditions which favored vast accumulations of wealth included the extensive natural resources being discovered as the country expanded, the enormous potential workforce of immigrants arriving in the country, and the general acceleration of business in the years following the Civil War. Railroad builders, in particular, needing political influence to build their railways, became adept at influencing politicians through the use of lobbyists, or in some cases, outright bribery. In the public mind, robber barons were often associated with political corruption. The concept of laissez faire capitalism, which dictated no government regulation of business, was promoted.  Facing few  impediments to creating  monopolies, engaging in  shady stock trading practices,  or exploiting workers, some individuals made enormous fortunes. Examples of Robber Barons As the term robber baron came into common usage, it was often applied to a small group of men. Notable examples were: Cornelius Vanderbilt, owner of steamship lines and railroads.Andrew Carnegie, steel manufacturer.J.P. Morgan, financier, and banker.John D. Rockefeller, founder of Standard Oil.Jay Gould, Wall Street trader.Jim  Fisk, Wall Street trader.Russell Sage, financier. The men who were called robber barons were often  portrayed in a positive light, as â€Å"self-made men† who had helped build the nation and in the process created many jobs for American workers. However, the public mood turned against them in the late 19th century. Criticism from newspapers and social critics began to find an audience. And American workers began to organize in great numbers as the labor movement accelerated. Events in labor history, such as the Homestead Strike and the Pullman Strike, intensified public resentment toward the wealthy. The conditions of workers, when contrasted with the lavish lifestyles of millionaire industrialists, created widespread resentment. Even other businessmen felt exploited by monopolistic practices as it was virtually impossible to compete in some fields. Common citizens became aware that monopolists could more easily exploit workers. There was even a public backlash against the lavish displays of wealth often exhibited by the very wealthy of the age. Critics noted the concentration of wealth as evil or weakness of society, and satirists, such as Mark Twain, derided the showiness of the robber barons as â€Å"the Gilded Age.† In the 1880s journalists such as Nellie Bly performed pioneering work exposing the practices of unscrupulous businessmen. And Blys newspaper, Joseph Pulitzers New York World, positioned itself as the newspaper of the people and often criticized wealthy businessmen. In 1894 the protest march by Coxeys Army drew enormous publicity to a group of protesters who often spoke out against a wealthy ruling class that exploited workers. And the pioneering photojournalist Jacob Riis, in his classic book How the Other Half Lives, helped to highlight the great gap between the wealthy and the suffering poor in New York Citys slum neighborhoods. Legislation Aimed at Robber Barons The public’s increasingly negative view of trusts, or monopolies, transformed into legislation with the passage of the Sherman Anti-Trust Act in 1890. The law did not end the reign of robber barons, but it signaled that the era of unregulated business would be coming to an end. Over time, many of the practices of the robber barons would become illegal as further legislation sought to ensure  fairness in  American business. Sources: The Robber Barons.  Development of the Industrial U.S. Reference Library, edited by Sonia G. Benson, et al., vol. 1: Almanac, UXL, 2006, pp. 84-99. Robber Barons.  Gale Encyclopedia of U.S. Economic History, edited by Thomas Carson and Mary Bonk, vol. 2, Gale, 2000, pp. 879-880.