The Role Of The Entrepreneur

The Role Of The Entrepreneur Previous studies have highlighted the changes by OECD countries from large companies consisting of mass production to smaller companies focusing on knowledge, initiative and flexibility. According to Karlsson et al, this change appears to have taken place from the mid-1970s to the early 1990s. (Karlsson et al., 2004; Acs, 1996 and 1999; Acs and Audretsch, 2001; Audretsch and Thurik, 1997 and 2001; Audretsch et al, 2002) The large managed economies invested in production, distribution and management. (Chandler, 1990) A large distributional network meant the products could reach large market. The smaller entrepreneurial economies focus on knowledge and flexibility as part of production. (Karlsson et al., 2004) Karlsson et al highlights the factors that caused the change from a managed economy to an entrepreneurial economy such as increased global competition, changes in demand and demographics, intensified uncertainty and new technologies. (Karlsson et al., 2004) Definition of Entrepreneurship The name Entrepreneur can be used very vaguely as it can cover a number of different roles. Thurik and Wennekers identified up to thirteen roles that the entrepreneur can be responsible for: The person who assumes the risk associated with uncertainty The supplier of financial capital An innovator A decision maker An industrial leader A manager An organiser and coordinator of economic resources The owner of an enterprise An employer of factors of production A contractor An arbitrageur An allocator of resources among alternative uses The person who realises a start-up of a new business (Thurik Wennekers, 1999) After much studying regarding the history of entrepreneurship and the economy, Hà ©bert and Link came up with the following definition for the entrepreneur: The entrepreneur is someone who specialises in taking responsibility for and making judgemental decisions that affect the location, form, and the use of goods, resources, or institutions. Thurik and Wennekers then came up with the following definition of entrepreneurship, with the help of Hà ©bert and Link (1989), Bull and Willard (1993) and Lumpkin and Dess (1996): Entrepreneurship is the manifest ability and willingness of individuals, on their own, in teams, within and outside existing organisations, to: perceive and create new economic opportunities (new products, new production methods, new organisational schemes and new product market combinations) and to introduce their ideas in the market, in the face of uncertainty and other obstacles, by making decisions on location, form and the use of resources and institutions. (Thurik and Wennekers, 1999) The Global Entrepreneurship Monitor (GEM) defines entrepreneurship as: Any attempt at new business or venture creation, such as self employment, a new business organisation, or the expansion of an existing business organisation by an individual, teams of individuals, or established businesses. (GEM, 2002) Invest NI simply defines entrepreneurship as: Someone who pursues business opportunities beyond known resources to create wealth. (Invest NI) History of Entrepreneurship Entrepreneurship and Economic Growth Theories Thurik and Wennekers split the historical entrepreneurial theories into three traditions: German tradition of von Thà ¼nen, Schumpter and Baumol Entrepreneur is the creator of instability and creative destruction. (Neo-)classical tradition of Marshall, Knight and Schultz Helps markets reach an equilibrium by carrying out entrepreneurial activities. Austrian tradition of Menger, von Mises and Kirzner The ability of the entrepreneur to realise opportunities for profit. Helps satisfy needs or improve market inefficiencies and deficiencies. Thurik and Wennekers attribute economic growth through entrepreneurship to three main entrepreneurial activities, enhanced competition, innovations and employment growth through firm start-ups. The following table, created by Thurik and Wennekers, shows the various schools of growth theory with the role of entrepreneurship: Growth Theories Neo-Classical Growth Theories Schumpeter/ Baumol Theory Karlsson et al highlights that the German traditions of Schumpeter in 1934 and Baumol in 1968, shows the entrepreneur as an innovator and inspirer, the implementer of creative destruction, creating instability, disequilibria and economic development. (Karlsson et al., 2004) A model by Aghion and Howitt tries to explain how creative destruction works. The Research and Development sector invents new production techniques, putting other techniques beyond use. As this new technique is used, the innovators are rewarded until a new technique superseeds his invention. (Aghion and Howitt, 1992; Thurik and Wennekers, 1999) Neo-Classical Theory While there have been a number of neoclassical growth models created over the years, the main one to have an impact has been that of Robert Solow in 1956. One of his main conclusions was that the accumulation of capital cannot account for historic growth per capita, nor the differences in international per capita output. Karlsson et al explains that the model is built where output is a function of capital and effective labour, where effective labour includes the knowledge and effectiveness of the labour force. Output therefore increases if either capital or effective labour increase, and with given levels of capital and labour, the only way growth can occur is through the expansion of knowledge, being the advancement of technology. The economy will eventually reach equilibrium, where output, capital and effective labour will all grow at a constant rate. This rate of growth is determined by the advances in technology. With this theory by Solow, the entrepreneur does not exist. Austrian Theory The Austrian Theory is where the entrepreneur spots an area of disequilibrium and attempts to profit from this situation by improving on the inefficiencies and deficiencies in the market. (Kirzner, 1973) Holcombe (1998) and Minniti (1999) agree that in order for opportunities to become available, they have to have been created by other entrepreneurs. Quite simply put by Karlsson et al, entrepreneurship generates more entrepreneurship. (Karlsson, 2004; Holcombe, 1998; Minniti, 1999) Endogenous Growth Theories (New Growth Theory) The Endogenous Growth Theory or New Growth Theory was developed in the 1980s as a response to the basic Neoclassical Theory of Growth. Many believe that the problem with the Neoclassical theories is that as growth is determined through the levels of technological changes, there is very little relating to the factors that affect technological progress. Romer (1986, 1990) and Lucas (1988) were responsible for the early development of this concept. (Hoque) It appears that generally within the endogenous models such as Romer (1986, 1990) and Lucas(1988), the entrepreneur does not hold a central role, however, Grossman and Helpman (1991) suggest that all Research and Development and investment decisions are made by forward-looking profit maximising entrepreneurs. (Karlsson et al, 2004; Grossman and Helpman, 1991) Hoque goes on to suggest that output and growth are dependent on the internal variable saving rate, which is converted into human capital investment used for innovating new ideas and methods. This variable saving rate allows for technological progress, resulting in the long-term growth of the economy. The endogenous growth theory focuses on a number of factors, including education, knowledge, research, training and experience. These factors help for growth and lead to innovation. Hoque mentions two types of innovation: Horizontal Innovation The Research Sector develops a variety of goods leading to a spillover effect on the economy. These goods can be patented and sold to the immediate goods sector who then have a monopoly power on each design and can therefore earn a monopoly return. Vertical Innovation This is where improvements are made to existing products, leading to a temporary increase in productivity and a sustainable increase in output growth. East Asian Miracle: 1965 1990 Thurik and Wennekers (1999) refers to the economic growth of East Asian countries in the past decade. These eight countries are referred to as the High-Performing Asian Economies (HPAEs) and include the Republic of Korea, Taiwan, Singapore, Hong Kong, Japan, Indonesia, Malaysia and Thailand. During the period of 1965 to 1990, they experienced an average GNP growth rate per capita of 5.5%. This growth can be taken from both exports of goods, as well as domestic demand. A number of public policies led to growing physical and human capital, the allocation of resources to productive investment and the gathering and perfecting of technology. Thurik and Wennekers, however, state that the innovation, private investment and marketing does not necessarily come from entrepreneurial activity and there is no obvious proof of an increase in entrepreneurship. Phelps commented on the paper by Mankiw (1995), claiming that with such an increase in human capital, entrepreneurship must be the reason, helped by the governments. Porter (1990) has also supported this viewed when writing about Emerging Korea in which he states two factors, being the willingness to take risks and the intensity of competition. Entrepreneurship and the Competitive Advantage of Nations An analysis by Porter (1990) was conducted in order to highlight the factors or conditions and determine the competitive strength of nations. Porters model was made up of four sets of factors in what was called the diamond model. Thurik and Wennekers describe these determinants below: Factor Conditions Porter distinguishes basic factors (e.g. natural resources and cheap, unskilled labour) from advanced factors (highly skilled personnel, modern networks infrastructure); Demand Conditions These have three main elements: the nature of buyer needs (e.g. sophisticated instead of basic), the size and the pattern of growth and the existence of mechanisms by which a nations domestic preferences are transmitted to foreign markets; Related and Supporting Industries The presence of internationally competitive supplier and related industries stimulates rivalry and partial cooperation; The Structure and Culture of Domestic Rivalry This encompasses a wide scope such as opportunities provided to possible new entrants, the nature of competition between incumbent firms, dominant business strategies and management practices. (Thurik and Wennekers) This diamond model is summed up by Porter (1990) as, Invention and entrepreneurship are at the heart of national advantage. With this model, Porter suggests that innovation comes directly from entrepreneurship. As well as this, he claims that international competitiveness is a vital link between entrepreneurship (innovation) and economic growth, with domestic rivalry being important in leading to international competitiveness. He also mentions that entrepreneurship is not a trait associated with smaller firms. (Thurik and Wennekers, 1999) Evolutionary Economics The concept of this theory is that each individual has a set of routines, which gradually evolve. These routines are tested in the market environment and due to natural selection, the most suitable one survives. (Karlsson et al., 2004) In this model, each individual has entrepreneurial spirit, human capital and venture capital. (Grebel et al., 2001) Eliasson (1994) mentions that in order for a firm to survive, competence is the most important factor and that accumulation of competence is the determinant of success. This was also backed up by a study conducted by Eliasson and Braunerhjelm (1998), claiming that economic growth stems from human-embodied tacit competencies. (Karlsson et al., 2004) Linking Entrepreneurial Activities to Economic Growth Competition Within the U.S., Acs (1996) suggests that employment growth is due to the increased competition. Geroski (1994) agrees that competition is important by stating that competition plays a significant role in stimulating productivity, with both new firms and new ideas provoking movements to, and outwards movements of, the production frontier which, the data suggest would not have occurred in their absence. Gort and Sung (1999) conclude that an increase in competition will lead to an increase in efficiency. This competition will affect efficiency in four ways: Greater incentive to stimulate demand Higher quality of capital inputs Lower monitoring costs Greater efficiency of firm-specific organisational capital and rivalry leading to innovation Dennis (1995) mentions how competition stimulates some people, but not everyone. These people will try to find a better and more profitable way of doing things in order to maintain or improve their position in the market. These people have chosen innovation rather than working harder. (Dennis, 1995; However, he also mentions how there are policy-imposed limits on competition which vary from country to country, giving the example that the U.S Postal Service who are owned by the government, are the only company allowed to deliver first class mail. This can allow a monopoly to form over a certain market and prevent competition occurring. Innovation The innovative activity of small firms has a different level of importance depending on the type of sector a firm is involved in. (Acs and Audretsch, 2001) Baldwin and Johnson (1999) mention a number of small firms in which innovation is important including electronics, instruments, medical equipment, steel and biotechnology. Acs (1996) goes further than this by calculating the number of innovations per 1000 employees in different industry sectors. When this measure was carried out in 1982 in the U.S., it was found that firms with less than 500 employees produced more innovations in fields such as electronic computing equipment, process control instruments, electronic components, engineering and scientific instruments and plastic products. (Karlsson et al., 2004) In studies conducted by Acs et al (1994), as well as Audretsch and Vivarelli (1996), it was found that innovations by small firms was greater if the firms were close to Universities. This shows the effect of education on innovation. Other studies have found that small firms are more likely to innovate in unexplored areas of technology, with the larger companies focusing on more established areas. (Acs, 1999) Rothwell and Zegveld found that all outputs from the UK which they studied were radical breakthroughs, with only 27% of U.S. firms producing these radical breakthroughs, 30% as major technological shifts and 37% as improvement type innovations. (Rothwell and Zegveld, 1982; Karlsson, 2004) Ernst and Young make a number of observations with regards innovation and entrepreneurship: Theres no time like a downturn to take advantage of entrepreneurial thinking A recent Ernst and Young survey found that the majority of entrepreneurs saw the economic slowdown as the perfect time to explore new opportunities. More than half of the companies on the 2009 Fortune 500 list were founded during a recession or bear market. The market leaders of today are not necessary the market leaders of tomorrow Entrepreneurial enterprises grow quickly, replacing the market share of many dominant corporations. Innovation can, and often must be, disruptive Disruptive innovation is often the turning point for business in an industry undergoing significant change. (Christensen, 1997) Applegate states, Disruptions in the business environment cause economic shifts that destabilise industries, companies and even countries. They allow new entrants or forward thinking established players to introduce innovations in products, markets, or processes that transform the way companies do business and consumers behave. (Applegate, 2007) She goes on to mention a number of factors which companies must consider when faced with disruptive business conditions: Technology Important emerging technologies and how they are being used by others to help create an advantage. Business Models New business models need to be created or adapted to help improve how business is done. Industry Dynamics Fragmented industries where significant value can be delivered through consolidation. Globalisation Adapt to how companies in another part of the world perform. Regulatory, macroeconomic, political and societal factors Changes in regulations, political power and society that disrupt major companies, providing opportunities for new companies. (Applegate, 2007) Never too big to be an entrepreneur Large firms are often weighed down by institutional structures that may see unconventional ideas or strategies as impractical or threatening. However, they can still innovate successfully by building and sustaining innovation-oriented cultures. Large companies have found that in addition to internal research, they can seek innovation through partnerships, joint ventures, licensing and investing in up and coming companies. Government policies that encourage entrepreneurship are most likely to result in increased innovation A 2009 report from the Ernst and Young Conference Board states, Policies that protect firms or industries can result in reduced incentives for entrepreneurs to invest in innovative ideas and for large firms to invest in Research and Development because they no longer face the competitive pressure to constantly improve their product in order to improve (or maintain) their market share. Ernst and Young highlight that the governments which are viewed as most effective when they stay out of the business sectors way, play an important role in helping the engines of growth which are entrepreneurs. They also highlight some ways in which the government can help: Strengthen and invest in education systems Encourage businesses to connect with global, cross-border markets Cultivate confidence in capital markets Simplify procedures and requirements Champion robust Research and Development programs Allow for failure Encourage sound public/private partnerships Make the tax framework friendly to innovation (Ernst and Young, 2009) Industrial Structure, Start-ups and Job Creation When it comes to the differences between large and small firms, Carree and Thurik (1998), as well as Vosloo (1994) highlight a number of advantages in smaller firms. Mentioned is the fact that a greater number of smaller firms dispersed geographically allow for customers to cut travelling distances. As well as this, variety can only be created by small firms and the entrepreneur running the firm is more likely to be energetic and motivational. Vosloo highlights advantages of small firms in developing economies, such as less capital per worker on average, higher likelihood of innovation per employee, greater flexibility, higher growth and job creation rates, as well as being able to serve a more niche market. Studies by both Audretsch et al (2002), as well as Carree and Thurik (1998), have found that on average, the employment share of large firms had a negative effect on growth of output and that smaller firms have helped economic growth. With regards to Germany, Wengenroth (1999) concluded that Small business was the catalyst of industrial growth in providing the background of skills and services which alone made possible the mass consumption of industrial product. Davis et al (1996) mentions that the entrepreneurship in start-ups makes a smaller contribution to job growth than expansion of existing firms in the U.S. This is also backed by a study conducted by Bednarzik (2000). It has to be noted however, that smaller firms have a higher gross job creation, with larger firms providing more in terms of net job creation. Carree and Klomp (1996) dispute this claim from Davis et al, arguing that relative to employment share, small firms created more net jobs relative to employment share. (Karlsson, 2004) What has regularly been found is that small firms can have a volatile job situation, with plenty of job growth, but also a lot of job destruction. Investec, a UK asset management group, have predicted a large number of job losses within the public sector with the hope that entrepreneurship will offset this. Their research also found that two thirds of Britains entrepreneurs expect to increase employment, with only 8% expecting job losses. (Investec, 2010) Ed Cottrell, from Investec Private Bank highlighted what is required by the new Coalition Government in the UK. With a new government formed, severe spending cuts will have to be enforced to help tackle the countrys debts, and this could lead to job losses, especially in the public sector. We need to make sure that entrepreneurs, which are the lifeblood of our economy, are properly incentivised to grow their operations and therefore hire more people. Philip Shaw, the chief economist at Investec Bank added, Entrepreneurs look for an environment that provides them with opportunity, reward and a flexible environment to operate in. They also look for stability and support, be that from the banks or the government, and it is in the best interest of the economy to provide this to them. (Investec, 2010) Entrepreneurship and Large Firms Entrepreneurial activity is not limited to small firms. Corporate entrepreneurship occurs in large organisations with Drucker (1985) claiming that they will not survive unless they acquire entrepreneurial competence. Stopford and Baden-Fuller (1994) explain that there are three types of corporate entrepreneurship: Creation of new businesses within an organisation often referred to as intrapreneurship. Transformation or strategic renewal of existing organisations. Carrying out an innovation that essentially alters the industry. (Stopford and Baden-Fuller, 1994) He also highlights five attributes common with corporate entrepreneurship: Proactiveness Aspirations beyond current ability Team orientation Capability to resolve dilemmas Learning capacity Stevenson and Jarillo (1990) refer to corporations acting entrepreneurially, pursuing opportunity, whether through specific company structures or not, constitutes the core of entrepreneurship, both individual and corporate. They highlight how dependant management are on the individuals within a firm to create this corporate entrepreneurship. Bridge et al (1998) highlight the difference between inventors and intrapreneurship. Inventors are usually individuals, but intrapreneurship is frequently carried out by groups or teams. Thurik and Wennekers (1999) concludes by stating that corporate entrepreneurship plays an essential role in the process of strategic renewal of large and incumbent firms. In the short-term, corporate entrepreneurship can occur at the same time as downsizing and the loss of jobs, however, in the long-term, it enhances competitiveness and leads to sales growth. Thurik and Wennekers (1999) also mention how studies have shown that there seems to be a strong evidence to support a positive impact of corporate entrepreneurship on economic growth. They created a table to show the differences between individual and corporate entrepreneurship: Figure 2 Individual and Corporate Entrepreneurship According to Cole and Neumayer (2003), neoclassical growth theory predicts that poor economies grow faster than rich economies. This is taken from the theory that if all economies are assumed to have the same steady state, then the only difference between countries is the initial level of capital and poor economies will grow faster as they are further away from their steady state. Measuring Entrepreneurship GEM (Global Entrepreneurship Monitor) The Global Entrepreneurship Monitor is a global measure of entrepreneurial activity to assist in entrepreneurship policy research. The project has now been running for 12 years and covers over 34 countries worldwide. GEM aims to fulfil a number of research questions similar to this dissertation: How much entrepreneurial activity is taking place in each county? Why do levels of entrepreneurial activity differ between countries/regions? What are the links between entrepreneurial activity and economic growth and productivity? Surveys conducted by GEM are used to collect information on different types of businesses at a range of entrepreneurial activity. These three business types are: Start-ups Young businesses Establishes businesses Research from GEM continues to associate a positive correlation between start-up activity and economic development, highlighting key indicators of entrepreneurial capacity and tendencies. A Background to Northern Ireland Northern Ireland is one of four countries located in the United Kingdom. With a population of 1.7 million people as of 2004, it is the smallest of these countries. (UK Statistics Authority, 2004) Traditionally, Northern Ireland has been known for having an industrial economy, for example, in the shipbuilding and textiles businesses. This has since been replaced by the services industry. For example, Harland and Wolff, a shipbuilder located in Northern Ireland, once employed around 35,000 people. Nowadays, there are only around 500 employees focused on the repairing of oil platforms and the assembly of wind turbines. Northern Ireland has for a long time suffered from a troubled past, with the most recent referred to as The Troubles. This has been dated from the late 1960s to the signing of the Good Friday Agreement in 1998. (Aughey, 2005) During this time, threats of bombings, the high cost of security and the lack of a stable market, meant large companies were reluctant to invest. This also drove away many of the existing businesses. (Rowthorn Wayne, 1988) Confidence gradually built up within Northern Ireland since the mid 1990s, when many paramilitary groups initiated cease fires and political parties began to work together. However, the signing of the Good Friday Agreement in 1998 proved to the rest of the world that the majority of Northern Ireland were willing to move on from the troubled past. Twelve years on and unemployment has fallen sharply, as well as many people immigrating to Northern Ireland from other EU countries. (BBC, 2008) The current rate of unemployment stands at 6.8%, amongst one of the lowest of the regions in the United Kingdom, compared with a peak in 1986 of 17.2%. (DETINI, 2010) (BBC, 2001) Entrepreneurship within Northern Ireland Previous research into the effect of entrepreneurial activity on economic growth by organisations such as the Global Entrepreneurship Monitor (GEM) and the Organisation for Economic Co-operation and Development (OECD), have shown a direct correlation. (Hegarty, 2006) According to the GEM survey in 2009, Northern Ireland was ranked 9th out of 12 UK regions for Total Entrepreneurial Activity (TEA). There has still, however, been a rise in the TEA rate since 2002, despite the impact of the economic recession. (GEM, 2009) Figure 1 below shows the change in Total Entrepreneurial Activity since 2002: Figure 3 Total Entrepreneurial Activity in Northern Ireland and the UK (2002 2009) (GEM APS) This TEA value is calculated using the percentage of early-stage entrepreneurial activity among the adult population, aged 18 64 years. (Pfeifer and Sarlija, 2010) In order to qualify and be included in the TEA value, respondents have to be involved in either: Nascent Ventures The firms generally referred to as start-ups. Any respondent actively involved in creating a new business that they would own or part of and had not paid any salaries or wages to anyone for more than three months. Young Businesses More established, owner-manager businesses but have not been paying salaries for more than 42 months. Lee et al explains that there are two academic approaches to categorise entrepreneurship. The first way is to focus on the entrepreneurs and understand why they chose to start a new business and be an entrepreneur. The second way is to study regional variation in the formation of new businesses. (Lee et al., 2004) For this study, both approaches will be used. A number of factors can be studied in order to determine how entrepreneurship affects economic growth. Storey (1994) focused on factors such as personality, human capital and ethnic origin whereas Evans and Leighton (1990) focused more on factors such as educational attainment and work experience. Previous research has linked a higher educational attainment with new business formation. (Evans and Leighton, 1990) Evans and Leighton also found that men with greater financial resources and greater confidence in their ability are likely to be self-employed. (Evans and Leighton, 1989) Regional factors that affect birth rates of businesses include unemployment, population density, industrial clustering and the availability of financing. (Reynolds et al., 1994) Armington and Acs (2002) also highlighted factors such as income growth and population growth. Factors Affecting Entrepreneurship Gender Female entrepreneurial activity within Northern Ireland between 2002 and 2009 has been significantly below the UK average. In 2009, 2.4% of females were engaged in early stage entrepreneurial activity compared to the UK average of 3.7%. This value is also under a third of male entrepreneurial activity within Northern Ireland, which stands at 8%. Figure 2 shows the female early-stage entrepreneurial activity for Northern Ireland compared with that of the UK average. A report by Crimson Business Limited, highlighted possible reasons why women are less likely to be entrepreneurial than men: Under-capitalisation of ventures Low levels of self-confidence Visibility of appropriate role models The report indicates that these barriers to women becoming entrepreneurs needs to be overcome with greater support from the government. (Crimson Business Limited, 2006) These barriers are not seen globally however, with different parts of the world having different cultures and customs with regards the participation of women in the economic growth of countries. For example, in countries such as Tonga and Guatemala, women are more likely to be involved in early-stage entrepreneurial activity than men. (Bosma and Levie, 2009) Age In 2009, total entrepreneurial activity for those aged 18 24 in Northern Ireland was 2.3% of the adult population. This is compared with a UK average of 3.4%. Northern Ireland remains, as it has done in recent years, with a peak in total entrepreneurial activity between the ages of 25 and 34. A surprising decline in entrepreneurs between the ages of 35 and 44 has been seen in 2009, against the trend of the rest of the UK

The Kinght And Chivalry According To William Barber :: essays research papers

Richard Barber first published The Knight and Chivalry in 1970. At the time, not a whole lot had been written on the subject of chivalry. Thus, Barber can be viewed is sort of an original scholarly writer on this subject matter. His work is extensive. In this particular book he covers the following concepts: the transition of the Knight from mounted warrior, chivalry and literature, chivalry in the field, chivalry in religion, and finally, chivalry in the state. All five parts present pages of rich text. However, I will be dealing specifically on the concept of chivalry and literature. My reason is this: to the reading it was done in MDVL 145, heroes and villains, I am more inclined to look at the author’s own ideas in relation to other literature circa the 12th century, in a critical manner. Thus the purpose. I already mentioned that the book carries a wide spectrum of ideas in continent. In dealing with the book as another piece of useful text, is important to look at the detail of the Barber puts into the subjects that he's addressing. In this, the important aspects are covered. He doesn't bore the reader with over detailing and repetition subject matter. However, at the same time the reader never feel like something was left out, or a confusion about the important links between literature and chivalry. The detail is lined with eloquence. One on the subject of chivalry, Barber wrote, "the ideals of chivalry appealed to the motions, and the forest best in a Gothic and romantic climate; neoclassicism appeals to reason and to the sense of order." In such a wide range of book, and make things difficult for the reader to distinguish such variations in concept, rained, and period of time. I think this is why Barber begins the book by setting a foundation no idea of what Knight and is, and what exactly represents. In doing so, of course, [the author] establishes a great deal of history post the era of chivalry in Knight said. So much insight is given in most all aspects of chivalry. What I find especially interesting is the detail painting of the tournament as a chivalric occasion. Though this book contains a rather large spectrum of conceptual range, the focus is kept on the ideal of chivalry. While Barber covers content of the specifics, he also has involved other means of informing the reader in order to enforce the points that he makes.

Global Marketing

Introduction and Company Background Tesco PLC is the largest British retailer in terms of both global sales and domestic market share with profits that exceed ? 3 billion. Currently, the company is the third largest after Wal-Mart and Carrefour in terms of revenue but only second to Wal-Mart in terms of profits. The company has diversified its market target into clothing, food, financial services, drink, home, car insurance, telecoms and health. Jack Cohen founded Tesco PLC in 1919 in East London and the company has grown over the years and now has a 30.9% market share in the United Kingdom which makes it the largest retailer in the UK (Applegate & Johnsen, 2007, p. 128). The core business of the company is large format food stores and other convenience items. It operates under four banners namely, Extra, Superstore, Metro and Express. This report analyses the critical marketing issues that is facing Tesco PLC. It will explore the global marketing strategies being pursued by the company and attempt to draw comparisons between its approach and appropriate theoretical concepts and models. The study will also evaluate whether the model being used by the company is still relevant in the current marketing practice or not. The study will rely on the following methodology in the analysis.External environmental analysisTesco Plc operates in an industry that is dominated by two other companies in the global business environment. Its main competitors are Wal-Mart and Carrefour who have a huge base of loyal customers. The external environment will be analysed using the STEEPLED model in order to assess the ethics and demographic factors in the analysis.Political FactorsTesco Plc now operates in Europe, Asia and North America and as such its performance is a function of legislative and political conditions of all the countries it operates in including the European Union. The company is affected by employment legislations as most governments encourage retailers to provide mixed job opportunities from low pay ing unskilled to the well paying high skilled jobs (McLoughlin & Aaker 2010, p. 53). The operations of the company are therefore highly sensitive to the political environment. For instance in Malaysia the government passed legislations that limit the number of stores the company can operate in the country. Tesco Plc employs the local people especially at the lower and middle management levels, pays taxes and complies with the local laws to ensure that its operations are not hindered by such factors.Economic FactorsThe economic factors affect the costs, demand, prices and profits of Tesco Plc. High unemployment levels and difficult economic times reduces the ability of households to purchase products and as such affects the demand required for the company to produce such goods (Pradhan 2009, p. 88). The company cannot control such external factors but they have profound impacts on its performance and the marketing mix. It is still highly depended on its core business in the United Ki ngdom and as such any economic slowdowns in the country can grossly affect it because it is exposed to the risks of market concentration. It is for this reason that the company is focused on growing its presence in the international market in order to raise its revenue base.Socio-Cultural FactorsThe British customers have increasingly developed more preference for one stop bulk shopping because of a variety of social changes. Tesco Plc has therefore increased the amount of non-food items in its stores so as to be able to take advantage of the opportunity. The company also offers a wide range of products that cater for the different diverse needs of people of the customers. Attitudes, beliefs and social conditioning often determine the type of goods and services demanded by the consumers (Richter 2012, p. 61). Additionally, the consumers are increasingly becoming aware of their health issues which change their attitudes towards food. Tesco Plc has had to adopt its marketing mix in or der to accommodate the increased demand for organic products. It was also the first to allow customers to make payments using cheques and cash at the checkout.DemographicsThe demographic changes in the UK population like aging population and more female workers mean that there is a decline in home meal preparation in the country. The company has increased food supply in its stores in order to satisfy the needs of such customers. The same approach is replicated in its international stores as it provides the local foods like whale meat in Japan and other foods in Malaysia and South Korea (Cunningham & Harney 2012, p. 90).Technological FactorsMany products of the company have of the company have been influenced by technology. Technology is therefore a major macro environmental factor that benefits both the company and the customers (Baines et al 2013, p. 77). The customers are satisfied through more personalised and convenient shopping while the company benefits through the development of an efficient supply chain.Environmental FactorsCompanies are currently facing increased pressure to acknowledge their responsibility to the society. The companies are required to operate in a way that benefits the society (Bradley 2005, p. 33). Tesco has been accused of selling genetically modified foods to children. The focus of the corporate social responsibility of the company is to comply with regulations and its corporate governance policy.Legal FactorsTesco Plc is required to comply with the different policies and legislations of the countries in which it has operations. For example in Malaysia it faced restrictions that limit its expansion in the country. The company has lowered the prices of some goods to comply with the pricing policies of different countries in which it has business operations. Internal Environmental AnalysisAlthough Tesco PLC has operations in different countries across the world, its core operations are in the United Kingdom which accounts for over 6 0% of its sales. This study will use different theoretical models in analysing the external environment of the company. The company continuously upgrades its ordering system, in- store processes and vendor list to improve the efficiency of its operations. It uses information technology to maintain its low priced leadership approach to supply chain management. The EPRG framework will be used to analyse Tesco PLC foreign marketing involvement. The company has to re-orient itself and align its operations to fit into the different levels of operational activities that a particular market segment requires. The EPRG framework assesses four types of orientation of a firm towards foreign marketing. It is very useful in helping companies asses and determine their operational strategies as it relates closely to the marketing mix. The strategies chosen by the company for each variable determines its overall operational strategy. The table below shows the EPRG analysis and marketing mix of Tes co PLC.ProductThe products of Tesco PLC are a mix of ethnocentric and regiocentric. The products that the company sells do not fit into all its market segments. Instead it sells products that are suitable for the respective regions in order to maximise sales (Thoenig & Waldman 2007, p. 111). The international expansion of the company takes into account the different tastes of the respective market segments. For instance it devoted a very big attention to the needs of the customers while venturing into the central European market as is reflected in the product line (Glowik & Smyczek 2011, p. 117). In the Czech Republic the company concentrated on providing the Czech products through retail shops. The same goes to China where the local consumers prefer buying live fish and turtles and other instant noodles unlike in the European market. Tesco PLC had to provide these products to the Chinese market in order to attract the Chinese customers. The other example is in Thailand where the co mpany had to adapt to the shopping habits of the Thai customers by introducing the fresh market hall to serve the interests of these customers who spent a huge proportion of their income on fresh foods. These new adjustments were introduced by the company to help it penetrate the new markets because some of these provisions are not available in its operations in the United Kingdom. The website of the company is also translated into the languages of the specific market segments to ensure that the prospective and existent customers get the latest information on the products on sale and offers if any. The other aspects of the company like online marketing and sales are consistently available in all the market segments.PromotionTesco PLC uses a mixture of both ethnocentric and polycentric promotional strategy. Although most of its promotional activities are those used in the United Kingdom, it also utilises the needs and characteristics of the particular market in formulating its promot ional strategies (Humby et al 2008, p.68). For example Tesco PLC implemented a strong plan for addressing parts of its offer to the customers in Thailand. The measures included remerchandising of its clubpack range of bulk products. It particularly targeted the small traders who shop regularly with the company. Another example is Poland where the company is launching a turnaround plan to improve its presentation of fresh food and is even introducing new concepts like bistro dining in order to differentiate itself from competition (Gunn 2009, p. 139). These plans are in some ways similar to the build better Tesco strategy being used in the United Kingdom but are a little adjusted to best serve the interests of the local market.PriceTesco PLC pursues a predominantly polycentric pricing approach in its international markets. The company attempts to organise its marketing activities based on the specific countries of operation (Humby et al 2008, p. 198). It treats each country different ly and formulates strategies that suit the specific local needs of the consumers. As such the prices of its products vary across different market segments depending on demand, income levels and demographics. For instance having had a difficult time in Ireland, the company launched pricing initiatives aimed at combating discounters and counter the lower prices offered by its competitors. The company reduced the prices in the stores particularly those close to the Irish border and has plans of extending the same to the rest of its stores in the country in the long run. The same low pricing strategy was also used by the company in Malaysia in order to attract more customers. In the other markets like England and Poland the prices are a little higher because they are sustainable for those market segments. In essence, Tesco PLC tries to ensure that the products and their prices fit into the demands of that particular market segment in question.PeopleThe management orientation of Tesco P LC has elements of both geocentric and polycentric influence. The global expansion of the company has been accompanied by teams that focus on both global and local markets. Its international expansion strategy has mainly been through joint ventures with the local partner firms in order to be sensitive to the needs of the local markets (Maynard 2013, p. 33). The company retains the employees of the partnering firms and continues with the approach of employing the local people because they are well placed to serve the needs of the local consumers. These local personnel are maintained by the company especially in the middle and low management positions because they are better placed to serve the needs of the local market than the foreign expatriates.Place and ProcessThe process of Tesco PLC is a mix of polycentric and geocentric. The company has adopted a global approach in some of its operations as it has designed its value chain in a manner that ensures that it minimises its operati onal costs. For instance when it came apparent that it was critical to reduce the prices of products in its stores in Ireland, Tesco PLC decided to drop its suppliers in the country in preference for favourable ones elsewhere. The management of the company has established its distribution channels to facilitate the movement of its products across the different regional and national markets (Zentes et al 2011, p.173). The process of the company also has some elements of polycentric approach because it uses some strategies based on particular countries. For instance in Asia it treats all the countries differently based their product demands are different making it impossible for the company to use the geocentric approach.As such it acquires the products from the local suppliers and uses local marketing channels for serving the needs of that particular market segment. The polycentric approach has helped the company penetrate into difficult markets like Malaysia, China and South Korea as these countries have significant political, economic and cultural differences with the United Kingdom (Zentes et al 2011, p. 45). The products of the company are sold in its stores which it rents in the major malls and shopping centres whenever it finds space or builds its own stores in cases where that is the best option for the market segment. The place can be said to be polycentric because the products are mostly in the big cities where there are many consumers with the ability to buy its products. The polycentric approach enables the company to strategically position itself in the markets in order to reach as many customers as possible.Proactive Market ResearchThe uses a polycentric approach in research and new product development because the needs of its customers in the different market segments are very diverse. In addition to this, some market segments like the American market have big industrial players like Wal-Mart who have a large base of loyal customers making it di fficult to venture into such markets with an ethnocentric approach.Proliferation of the BrandThe products of the company are standardised around the world to ensure that they are distinct and meet the required company standards.TOWS ANALYSIS of Tesco PlcThe TOWS analysis will be used to analyse both the internal and external factors in order to provide a holistic view of the position and direction of the company. The figure below shows a combination of the TOWS analysis that combines the DEEPLETERS analysis with the competitive advantages and EPRG model. INTERNAL STRENGTHS O Strong global brand and high brand exposure O Strong core UK market O Strong and stable growth in Asia O Financially sound O Variety of products to appeal to different consumersINTERNAL WEAKNESES OEthnocentric reliance on the UK market OStagnant or negative sales in some developed countries OHigh price elasticity due to competition and low costs of customers switching to other brands and loyalty OResistance to large firms in some countries EXTERNAL OPPORTUNITIES SO OContinue entering appropriate markets across the globe OContinue building on cost efficient pricing to attract more customers OGo into new markets and buy local retailers to gain market shareWO OExplore ways of reducing their operational costs in order to reduce prices for the consumers OIncrease the efficiency of its business process and supply chain OCapitalise on the opportunities present in the developing world by opening more stores there EXTERNAL THREATS OIncreased competition from other well established brands OPolitical and legal opposition against expansion in some economies OContracting consumer expenditures in Europe that reduce the demand for the non-basic goods OEconomic reforms may threaten multinationals like the finances and operations of Tesco Plc ST ORemain ahead of its competitors in terms of research and innovation in order to give the customers what they want OContribute to the society in which it operates to limit the political and legal barriers that inhibit its growthWT OIncrease the awareness of the brand through advertisement OWithdraw from the markets that are not performing well and use the funds to support other operations of the company The above analysis reveals that the company is on the right path as it has enacted mechanisms that will help it capitalise on its strengths and address its weaknesses. For instance the company has closed some of its international businesses that are not performing well like in the United States to reduce on loses. The company has also increased its operations in China and is focused in strengthening its presence in the emerging economies in Asia. Additionally, it is employing more local people and complying with the local regulations to reduce opposition against its operations in some economies.Opportunity IdentificationAnalysis of opportunity identification will be done using the BCG Matrix. The Boston Consulting Group Matrix (BCG) is important in analysing how companies allocate resources (Maynard 2013, p.81). The matrix splits the products of the company into four categories that determine how much money the company should invest in them. The categories are as follows: Cash cows should be used by the company for profits as much as possible Stars should receive investments so that they become the next cash cows Dogs have low share of market growth and should be sold as they depress the performance of the company Question marks have low share of high growth market and have the potential of becoming stars or dogs. The high street shops of the company are the cash cows. Tesco Plc has approximately 30% of market share in this division although the growth of the division has been very slow. The online operations of the company are the stars. The company is the largest online grocer in the United Kingdom. Tesco Plc should make more investments in this sector to improve its online offering because e-commerce is growing rapidly. The question marks of the company include video on demand service and blinkbox which face high competition from the big industrial players. The company should decide on the appropriate level of investments needed for turning this division into star. The Fresh and Easy operation in the United States was a dog and that is why the company decided to pull out of the country.Positioning/ targetingThe targeting strategy of Tesco Plc includes people of all ages and it offers a wide range of products to meet the demands of the customers. The company focuses on the specifications of products that are close to those of the rival companies in order to try and win customers from such companies. For instance it offers fresh and unreserved goods because people spend more money buying fresh products. In addition to product specifications, the company also prices its products fairly to attract more customers because households are very sensitive to price. Conclusion The findings of this study reveal that the strategies being pursued by Tesco Plc in its international expansion are in line with strategic models. The company identifies the opportunities present in the business environment and then devises the strategies for exploiting them. It has also adopted entry strategies like joint ventures and acquisitions for expanding into the international market. Such approach has helped the company expand its distribution network and win over the local markets by giving the customers a local approach. The company has also closed down the international businesses that are not doing well in the United States and Japan to reduce on loses and help it focus on other profitable markets. The company must continue to exploit the potential emerging markets and also looks for mechanisms of outdoing its major competitors. References Applegate, E., & Johnsen, A. (2007). Cases in advertising and marketing management: Real situations for tomorrow’s managers. Lanham: Rowman & Littlefield Baines, P., Fill, C., & Page, K. (2013). Essentials of marketing. Oxford: Oxford University Press. Bradley, F. (2005). International marketing strategy. New York: FT/Prentice Hall. Cunningham, J., & Harney, B. (2012). Strategy & strategists. Oxford: Oxford University Press. Glowik, M., & Smyczek, S. (2011). International marketing management: Strategies, concepts and cases in Europe. Mu?nchen: Oldenbourg. Gunn, M. (2009). Trading regime analysis: The probability of volatility. Chichester, England: Wiley. Humby, C., Hunt, T., & Phillips, T. (2008). Scoring Points: How Tesco Continues to Win Customer Loyalty. London: Kogan Page. Maynard, J. (2013). Financial accounting, reporting, and analysis. Oxford: Oxford university press McLoughlin, D., & Aaker, D. A. (2010). Strategic market management: Global perspectives. Hoboken, N.J: Wiley. Pradhan, S. (2009). Retailing management: Text and cases. New Delhi, India: Tata Mcgraw-Hill Education Pvt. Ltd. Richter, T. (2012). International marketing mix management: Theoretical framework, contingency factors and empirical findings from world-markets. Berlin: Logos. Thoenig, J.-C., & Waldman, C. (2007). The marking enterprise: Business success and societal embedding. Basingstoke [England: Palgrave Macmillan. Zentes, J., Morschett, D., & Schramm-Klein, H. (2011). Strategic retail management: Text and international cases. Wiesbaden: Gabler. Appendix Ethnocentric Polycentric Regiocentric Geocentric EthnocentricProliferation of the Brand Promotionproduct Polycentric Price / place/ Proactive Market Research Regiocentric Geocentric People / process Global Marketing Fairmont Hotels and Resorts (Fairmont) is operating and competing in the hospitality industry, which has been affected vastly by the impact of global financial crisis, terrorist attacks, globalisation of the hospitality and tourism industry, the uncertainty surrounding the sovereign dept of some countries in EU, development of emerging markets, the rapid dissemination of global lifestyles and other economic and political uncertainties in the past few years.Fairmont is also affected by technological innovation as well as other broad macro environmental trends. This essay will examine the most recent trends of global macro environmental factors that are likely to have the most significant impact on the hospitality industry and more precisely on Fairmont Hotels and Resorts. First a brief overview of the Fairmont and its position in a current international hospitality market will be given. After this the nature and impact of global macro environmental variables will be explored. Company history Fairmont Hotels and Resorts (Fairmont) is the largest of the brands in the Fairmont Raffles Hotels International group and by combing three distinct brands: the Raffles, Swissotel and Fairmont portfolios and has become a truly global hotel company with 91 hotels worldwide. More than 65 hotels of Fairmont in Canada, United States, Europe, Asia, Middle East and Africa, and Mexio, Carribean and Bermuda, sit between the upper scale and luxury travel market. They also have one of the largest collections of storied properties in the world with well known addresses in the portfolio including The Savoy in London, the Fairmont Banff Springs, and New York’s The Plaza. The average age of the guest is 47, down about 8 years in the last decade. Fairmont hotels target diverse market segments, for example Fairmont’s clientele has been split almost evenly between group (above 45%) and transient business (around 55%), and almost evenly between leisure and usiness travellers. However, their core customer is the luxury mid-aged traveller. Fairmont hotels are one-of-a-kind properties where sophisticated travellers can discover culturally rich experiences that are authentic to the destination. Situated in some of the most exclusive and pristine areas in the world, Fairmont is committed to responsible tourism and is an industry leader in sustainable hotel management with its award-winning Green Partnership program. What are global macro environmental variables? As Doole and Lowe (2008) state: â€Å"The environments in which international companies must operate is typically characterised by uncertainty and change – factors which, taken together, increase the element of risk for international marketing managers†. As many authors argue the global macro environmental factors are something beyond the companies influence, and must be treated as non-controllable variables. The five major global macro environmental factors, as denoted by Lancaster et al. (2002), Kotler et al. 2005) and Reid and Bojanic (2010) among the other authors, marketing managers often examine and which affect all organisation are: demographic, economic, political/legal, socio-cultural and technological factors. However, Lancaster et al. (2002) suggest if businesses are able to identify and react to these factors quickly enough they would be able to be part of changes occurring and take market leading position instead of being forced into market followers position or worst case being unable to prosper and survive as an international business in the global competition. Yet the macro environmental variables as suggested by mainstream theorists (Lancaster et al. 2002, Kotler et al. 2005, Doole and Lowe 2008, Kotabe and Helsen 2008, Palmer 2008, Reid and Bojanic 2010) needs to be managed through marketing planning process; threats must be minimised and opportunities maximised. For Fairmont, as an international hotel the issue to keep in mind is that hospitality industry is in a â€Å"fast moving environment† as well as their product they sell is perishable when considering changes in marketing strategy or tactics. Thus they face more complex and changing environments where they operate and compete than other industries. In order to survive and prosper, the essential is to take account of, and adapt to, fast changing environmental conditions. To see and take advantage of marketing opportunities while at the same time anticipating any threats to their business. By indentifying environmental trends soon enough, management should be able, at least in part, to anticipate where such trends are leading and what future conditions are likely to result from such changes. (Lancaster et al. 2002, Palmer 2008). Explain how changes in the socio-cultural environment affect marketing decisions The UK population will rebalance by 2015 – families will be the most prevalent group, and the retired will have increased in number fastest. One-person households are set to increase fastest into 2015, following the trend witnessed into 2010. Emerging markets where social exposure and status are important along with the rising income and relatively wealthy middle class. Mainly affect young people who have an above average need for social acceptance, and international travellers, who are exposed to multicultural values. Fairmont target market age group younger than used to be †¦. Embracing social media is a key way to reach customers. â€Å"We could never have predicted the explosion of social media,† Laboy said. And yes, â€Å"you can have meaningful customer engagement via Twitter. † Hoteliers need to consider mobile tagging as a way to offer promotions to customers, he said. †¢Ethical challenges and the Green movement On one hand provides opportunities to connect to customers and employees. On the other hand Western consumers choosing brands look for reassurance that the product has been produced in what they see as a socially responsible manner. On the basis of ensuring products and ingredients came from authentic source of supply which did not leave to the destruction of the environment and that they are free from child slavery and that the people that make them are able to earn a proper living wage. Consumers globally are becoming better informed through better education and faster and more effective communication. Now firms are increasingly expected to ensure that their behavior is ethical and in the interests of the global community which makes up their market. However, international marketing executives operating across cultures will find themselves facing moral and ethical dilemmas on a daily basis on a wide range of issues. Some of those currently receiving particular attention are bribery and corruption, counterfeiting and piracy. Explain how changes in the economic environments affect marketing decisions The international hotel industry has shown signs of recovery in the first half of 2010 according to the bi-annual hotel survey conducted by Hogg Robinson Group (HRG). HRG’s interim survey is based on a combination of industry intelligence, actual room nights booked and rates paid by its UK clients during January to June 2010 compared to the same period in 2009. Globally, the hotel industry has shown signs of recovery in the first half of 2010 when compared to the same period in 2009. Although the survey reveals a fragmented global picture, the hotel market in Europe and the US appears to be stabilising, as rates are either flat or only marginally down. The emerging market economies of India and China have shown strong upturns in growth over the last six months. Year-on-year economic growth in Q2 2010 was 7. 9% and 10. 3% in India and China respectively and the resurgence in economic activity has helped to prop up room rates. Growth in both economies will begin to ease over the next year as central banks begin to raise interest rates to address inflationary pressures. In contrast though, the Middle East region recorded the highest rate decrease, with double digit falls in the UAE, Bahrain, Qatar and Oman. Many western economies are coming to terms with the budget cuts necessary to reduce sovereign debt levels which will inevitably soften room rate growth. Dynamic emerging economies have less need to take fiscal austerity measures in the current climate and we expect growth to be higher as a result. However, the survey shows that emerging economies have not, as of yet, fully recovered from the effects of the global economic downturn. In the UK, growth prospects are buoyed by a weak sterling which continues to support tourism and leisure travel. In addition, the ongoing recovery of the banking and finance sector will contribute to corporate demand for rooms. There are, however, significant downside risks to growth in the market emerging from future cuts in public spending Belfast and Beijing both suffer from an oversupply of hotels, the latter having experienced massive investment in recent years from major players keen to build a presence in this emerging market. Bangalore, a city reliant on business travel associated with the IT industry and call centres, is a classic example of a market ‘popping’ as it has seen rates fall as a result of a drop in demand due to the global recession coupled with significant new hotel openings which have led to a current oversupply of rooms. Services apartments have grown in popularity and some of the IT industry has relocated to other areas in India. The 5 star market achieved a marginal increase of 1%. Whilst there has undoubtedly been a trend for corporates to turn to the 4 and even 3 star sectors in the current climate, hoteliers in this sector have held out for rates at the expense of lower occupancy levels, conscious that any significant rate reduction has an adverse effect on service levels as costs are brought in line, resulting in damage to a hotel’s reputation for quality and standards. Reflecting the need for cost reduction, clients are downgrading between the star ratings as well as continually reviewing their programmes and renegotiating rates where possible. In the 3 and 4 star markets average rates have decreased as suppliers strive to maintain their share of the corporate market. We continue to believe that budget options are not always the cheapest option when the add-on costs are taken into account. Mintel The UK officially exited recession in the fourth quarter of 2009. GDP rose 0. 4%, subsequently increasing 0. % in the first quarter of 2010 then 1. 1% in the second quarter. While fears of a ‘double dip’ recession have eased somewhat, consumer confidence has remained weak as Britain has entered an ‘age of austerity’. Economic growth in Europe remains weak relative to other regions; Euro zone GDP grew year/on/year by 0. 6% in Q1 2010, compared to growth on 1. 2% in Japan and 2. 7% in the US over the same period (Hogg Robinson Group 2010). Global hotel sales are expected to increase 30-40% in 2011, according to hotel investment services company Jones Lang LaSalle Hotels. 009 was characterised by frozen liquidity, stalled transactions and drops in hotel performance and values globally, this year signalled a dramatic improvement, with more opportunities for buyers. The number of hotel sales is forecast to continue to rise substantially in 2011, reaching a value of $28 billion (? 18 billion) to $30 billion (? 19. 3 billion). ASPAC has seen strong growth this year. However, overbuilding in Abu Dhabi and Dubai are dragging down levels in the Middle East and Africa. Every region except ASPAC saw a rise in September, but a dip in October. ASPAC remained strong in October. ASPAC is one of White’s bright spots. She sees that market growing by 10-12% in 2011. Other areas showing strong growth this year are Sao Paulo, Mexico City and Rio de Janeiro. She sees occupancy will increase by 3-5 %, ADR by 4-5% and overall RevPAR by 6-9%. Looking at specific RevPARs, ASPAC will increase 10-14%; Europe, 7-9%; the Americas, 6-9%; and the Middle East and Asia, 3-6%. VAT Emerging markets Fairmont regional growth is driven by Middle East markets such as the UAE, Egypt and increasingly Saudi Arabia, as well as growing numbers of Gulf travelers that stay at its properties in the United States, Europe and Asia. The Middle East, despite being impacted by the global downturn, still shows resilience over the past year with revenue dropping less than other regions, industry figures showed. Saudi Arabia has a large critical mass, huge influx of travelers, the built in demand drivers, and it helps us support our partnerships with our shareholders. It is the world’s top oil exporter, is developing its tourism sector to lower dependence on oil and hosts an estimated 10 million Muslim pilgrims every year. The 14 planned hotels will be all under the Fairmont brand. Fairmont is likely to also add hotels in Qatar, the world’s top exporter of liquefied natural gas, whose economy is booming and hosting World Cup in 12 years time†¦(Walid 2010) Explain how changes in the political/legal environments affect marketing decisions Identify the major trends in the firm’s technological environments Broadband penetration continues to increase, even amongst the groups already most likely to have access. 200 mph train from London to Frankfurt arriving in 2013 + opening new markets bringing closer international trade†¦ In a world moving more and more towards globalization, hotel organizations ill need to communicate more quickly, operate more productively, offer their employees greater opportunity and deliver their customers enhanced benefits. Those companies that address these issues today will be better prepared for the global marketplace of tomorrow. Conclusion Fairmont competes in the strongly competitive hotel and lodging industry, focusing on the first class and luxury segments of the markets. Fairmont is impacted by change in the overall travel, tourism and hospitality industries as well as broader macro-environmental trends.Bibliography http://www.amadeus.com/amadeus/goldrush2020.html http://www.arabianbusiness.com/ fairmont-sees-14-more-hotels-in-mideast-by-2014-184514.html

Economic Incentives Essay - 617 Words

Discussion Board Forum 1 Topic: Economic incentives Then discuss your topic in an original thread by 11:59 p.m. (ET) on Friday, and reply to at least 2 classmates threads by 11:59 p.m. (ET) on Monday. Be sure to include the following: * In the first paragraph, discuss the relevant economic theory of your topic (your textbook is a good source for this paragraph). * In the second, you must include outside research to corroborate your thread (from the Liberty University Online Library or elsewhere). * In the third, cite and discuss a real-world example of your topic. * In the fourth, integrate biblical insights into your Discussion Board posts. Economic incentives are used to influence a person. The postulate†¦show more content†¦Incentives are seen everywhere in daily life and they appear in a variety of ways. Whether a person is making a choice between what to eat for lunch or when to go to bed, they are being influence by incentives. For example, images of an appealing lunch meal in a TV commercial may make someone choose Subway over Mcdonalds. However, the same thought process can motivate someone to prefer a meal at McDonalds because of the company’s constant promotion of their â€Å"dollar menu† (Mcdonalds, 2013). Either of these incentives can appeal to a person, depending on what they are motivated by, in this case, either health or money. The Bible is full of different forms of incentives. Some people can skim the Bible and note its major incentive; the opportunity for eternal life. However a deeper knowledge of what God says shows many more incentives. Other incentives are exemplified in the Bible: believers have faith which gives them peace (Romans 5:1), faith leads to loving the Creator and experiencing His love (Psalms 85:10), and the knowledge of right and wrong gives an opportunity for forgiveness (Acts 2:38). All of these reasons for believing the Bible, along with many more, can motivate a person to choose that specific approach to life. In its essence, an incentive is a deliberate proposal calculated to make a person choose a certain action. Thus, the reason why incentives are so popular in society is because everything andShow MoreRelatedEconomic Incentives : Effect Of Social Disapproval1244 Words   |  5 Pagescitet{carpenter2006mutual} following similar work by citet{gachter2000cooperation}, provide empirical evidence that economic incentives can reinforce the effect of social disapproval. Both the mentioned papers consider groups of people ranging from five to ten. Each group plays ten rounds, and are then moved to a different group after each round in the `strangers treatment. 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