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UNDERSTANDING THE TORSION BAR history assignment help company: history assignment help company
Torsion bar, also referred to as torsion beam suspension or torsion spring suspension, is suspension system found in vehicles. The long metal bar has two ends in which one ends is firmly perpendicular manner to the bar, linked with the wishbone or the suspension arm axle. The bar gains a rotary secured into the chassis of a vehicle, while the other end terminates in a lever fixed in a motion along its axis due to the wheels vertical motion. However, the bar’s motion finds resistance from the bar’s torsion resistance. The material, diameter, and length of the bar effectively determine the bar’s spring rate (Miller 2007). These suspensions find applications in trucks, Dodge, SUV’s from Ford, and GM. Torsion bars have room for height compensation in order to adjust the ride height. However, excessive torsion bar results in a harsh ride if a bump the suspension system hits a bump prematurely. Therefore, ride quality and proper steering are factors dependent on the suspension system (Knowles 2011).
In selecting any material, it is necessary to put into consideration a number of factors including cost, performance, safety and regulation. As such, the material chosen for the task is high-carbon steel, which is a material that introduces elements of competitive edge, economy, operation stability, and success in the manufacture of the torsion bar. This steel has less than 2.11 % and more than 0.8% carbon in its composition. The material has a high level of wear resistance metal hardness. In addition, high-carbon steel sustains heavy loads and operates over a wide range of high temperatures. Moreover, high-carbon steel has a low thermal conductivity and expansion has indicated in table two.
Table 1: Mechanical properties of high carbon steel (Adapted from: Pacific Sintered Metals n.d).
High Carbon Steel
Yield strength PSI (A)
Ultimate tensile strength PSI(A)
Elongation % (A, B)
Impact strength Ft-Lbs (A, E)
Apparent hardness Rockwell (F)
Transverse rupture PSI (A)
Young’s modulus 106 PSI (A)
Equivalent MPIF specification
Table 2: High carbon steel properties (Adapted from: material science and engineering).
High Carbon Steel
Density 203 kgm-3
Thermal conductivity Jm-1K
Thermal expansion 10-6K-1
Young’s modulus GNm-2
Tensile strength MNm-2
Using table two, the normal stress developed by high-carbon steel is
σ = E*ε = 210*8 =1,680 GNm-2
Where σ = Normal stress
E = Young’s modulus
ε = Elongation
Metal alloys have inherent small elements regarded as residual or trace elements, which originate from the raw materials (Claymont 2009). However, solid forms of these metal alloys have no constituents of hazardous materials. Therefore, high-carbon steel has no hazardous material in solid form. In spite of this, exposure of high-carbon steel to processes, such as burning, grinding and machining, makes the metal emit airborne contaminants that it contains. As such, the processes in which high-carbon steel undergoes need to take place in well-ventilated environments and respiratory protection and other measures need adoption.
Given that high-carbon steel is an alloy of carbon and steel, the cost of manufacturing and component is reduced to the maximum. High-carbon steel is a metal alloy that has a wide acceptance globally. As such, there are no regulations that limit the use of the metal alloy in the manufacture of torsion bars. The properties of high-carbon steel including hardness, high tensile strength and wear resistance make it a suitable material for the manufacture of torsion bar. Land Rover Discovery develops high-tension forces; as such, high carbon steel will form the best material for the manufacture of the torsion bar.
Since the selected material is new, there is a need of subjecting the material to several tests including tensile tests, impact strength test, hardness test, and heat treatment test. The material will first be subjected into a torsion-testing machine, which will aid in depicting the shear strength and shear modulus of the material. In the torsion-testing machine, the twist angle and torque produced by the material as it undergoes twisting will be recorded. Strain gauges will aid in the determination of Poisson’s ratio, young modulus, and shear modulus.
Hardness test is necessary, and it will be conducted by subjecting a sample of high-carbon steel into an indenter machine. The depth of indenter will infer the hardness test since the indenter has a calibrated dial gauge. Impact test will also be conducted to determine the impact strength of high-carbon steel. This will occur through striking a test sample with a measuring device pendulum. The amount of absorbed energy is then measured and recorded.
Heat treatment test will occur through subjecting samples of high-carbon steel into an electric furnace. The samples are expected to remain in the furnace until the temperature is approximately 850OC. At this temperature, the samples will have to be soaked for about two hours in this temperature. The samples soaked then are classified into three groups. One group remains in the air, and the other two groups are quenched in palm oil and water respectively. Quenched samples are tempered at a temperature of 200OC for one hour and allowed to cool in the air. ANSYS 5.4 software will play a key role in conducting finite analysis for the numerical study. The test samples will be modelled with reference to experimentally tested samples, and torque, as well as boundary conditions, applied to aid in obtaining torsion deflections. Theoretical and experimental analysis will then facilitate in the determination of the static behaviour of high-carbon steel.
The testing process will take place with reference to data obtained from the Land Rover Discovery manufacturer concerning the static and dynamic loads disseminated by the vehicle, as well as the maximum and minimum rotary speeds of the axle of the vehicle. This data will aid in devising a failure mechanism for the testing process. In this, the strength and load bearing capacity developed by high-carbon steel will be compared to the data. As such, if the high carbon steel collected data infer small values than Land Rover Discovery data, rejection will occur. On the other hand, if the high carbon data depicts high values than Land Rover Discovery data, acceptance will occur. In addition, theories of failure such as maximum stress theory, strain energy of distortion theory, and maximum shear stress theory will find application in failure analysis. The test data will further aid in design decisions. In this, various designs development will take place to create a room for selection of the most suitable design that yields the best results.
The testing process will end after the determination of the static behaviour of high-carbon steel. This testing regime adopted will aid in inferring the appropriateness of adopting high-carbon steel as a material for torsion bar. Given that Land Rover Discovery is a heavy vehicle that has potential of disseminating heavy loads, the tensile strength, impact strength and hardness test for high-carbon steel are necessary to evaluate the suitability of the material in torsion bar manufacture. Land Rover Discovery suspension system emits heat; thus, a need for heat treatment test for high-carbon steel. Static behaviour determination is crucial for high-carbon steel material for it helps in inferring the behaviour of the material at differing loads and rotary motion. Therefore, the testing regime will aid finding out whether high-carbon steel material is suitable for making the Land Rover Discovery torsion bar component.
If the torsion bar were being designed for A Smart for 2, the material selection would differ extensively. This occurs since A Smart for 2 vehicle develops minimal loads than a Land Rover Discovery. The material selection process will then focus on weight reduction of the vehicle since a heavy material may lead to addition of weight on the axle of the vehicle. The selection process will also focus on reduction of use of an excess material that may appear redundant on the vehicle suspension system. The testing process will focus on the ability of the selected material to sustain shock loads, and bear the dynamic, as well as the static forces developed by the vehicle.
A low-carbon steel metal alloy would be efficient to make the torsion bar for A Smart for 2 vehicle. This is because, unlike high-carbon steel, low-carbon steel is quite light in weight. This characteristic makes the metal easier to form and gives the metal a ductile nature. In addition, the metal is fairly in expensive in comparison to high-carbon steel. Moreover, the surface hardening can take place through carburizing process. Carburizing process occurs through subjecting the metal alloy to a carbon-rich atmosphere.
On the other, the selection process of the material for torsion bar for Pagani Zonda C9 will also differ. Pagani Zonda C9 is light sport vehicle; therefore, the vehicle needs a suspension system that will aid in attaining this weight. The material selection process will emphasize on obtaining strength, and lightweight for the vehicle. The testing procedure of the material selected for Pagani Zonda C9 would pay much attention to the ability of the material to sustain higher dynamic forces, being strong, and exhibit malleability properties.
A suitable material for making a torsion bar for this kind of vehicle is aluminium. Aluminium is a light metal that will aid in development of the necessary weight of the vehicle. Aluminium also has the inherent properties of being a very strong metal, which is malleable and ductile. As such, aluminium develops the necessary strength and weight of the suspension system of Pagani Zonda C9.
Claymont, 2009. Material Safety Data Sheet. Evraz Claymont Steel, Inc.
Knowles, D, 2011. Automotive Suspension & Steering System: Classroom Manual. The Fifth
Edition. Delmar, Cengage Learning.
Miller, J, 2007. Be Your Own Auto Repair Technician. Global Media.
Pacific Sintered Metals, n.d. High Performance Powdered Metal (PM) Iron and Carbon
Steels. Retrieved from: http://www.pacificsintered.com/iron.html
Ragham, V, n.d. Material Science and Engineering. The fourth edition.
Tourism Motivation and Behavioral Segmentation world history essay help
Tourism Motivation and Behavioral Segmentation, Milton Keynes as a Destination
Tourism is a preferred leisure time activity. The motivation which triggers an individual to select particular hobbies and places for holiday is exciting tasks, which permit for a healthier comprehension of people’s attitude and behavior in the area of free time utilization. The motives why individuals prefer a tourist place in place of another are vital matters for both schedulers and administrators of tourism industry. Motivation is the compelling push which makes a person to undertake some action. This means that inspiration triggers a person to act on something. Motivation is therefore the starting point of all conduct as well as traveling. Tourist inspiration is the international incorporation and interaction of natural and social forces which provide worth and bearing to tour options, attitudes and familiarity (Maslow, 1943).
Segmentation is used to separate consumers into clusters with universal wants and needs so as to produce specific commodities and services to fulfill each cluster’s of requirements. This is a tool to cluster clients into different cluster depending on their assortment of distinctiveness, which will permit for additional objective oriented marketing. Moreover, the industry of tourism plays a fundamental position to the financial system of a country in particular and to the cities. Milton Keynes is a city that has stood in the lime light of tourism and as such has remained an attraction site for customers from all parts of the world both young and old (Nick & Gyimothy, 2002).
People’s inspiration to act is an exciting issue to discover, particularly in comprehension of free time motivation. The idea of motivation in a marketing framework is described and comprises the surroundings of motivation in a tourism perspective. Motivations are the primary rationale for a specific traveling conduct and are a fundamental task in comprehension of the assessment of tourists’ processes, as well as evaluating the succeeding contentment of tourist’s anticipation (Songshan & Hsu, 2009).
Motivation is basically the means that respond to the doubt concerning the reason why and how individuals’ behavior is triggered and directed. For that reason, motivation is well thought-out as the inside causes that inflate and influence individual behavior. It is expressed as a compelling power that causes us to be in motion. In the same way, motivation can be described as an “inner force” that pulls an individual to take action and offer a way to the conduct. Motivation itself is the progressions that guide individual to act as they act and the procedure start when a want occur that a user desires to gratify. Once the want has been triggered, a situation of hostility present that coerce the customer to try to lessen or eradicate the want (Vroom, 1964).
Moreover, motivation is also described by “motive”. Motive and motivation mean inducement or force. Though, motivation is deeper than motive. Each one has its distinctive type of stuff in the kind of objective of conduct but motivations have outcome of circumstances of contacts. The difference between drive and inspiration is significant since it permit a classification of the vigor that cause people to act permit these intention to be articulated in a different way by various persons. It is affirmed that motives be differentiated from inspiration, where the earlier refer to the nonspecific refresher for conduct. In fact, motivations entail aim or substance and are relations between drive and circumstances (Solomon, 2004).
Motivation is a significant force that incite human into dealings with an endeavor to get what they require. The theory argues that there are three explicit characteristics of motivation, which is the provocation of behavior, the command of behavior, and perseverance of behavior. He elucidates that provocation of behavior entails what stimulate human behavior and command of behavior is relate with what regulate behavior to obtaining a particular goal. Perseverance of behavior is involves how the behavior is maintained (Uysal & Weaver, 1995).
In general, fundamental motivation theory illustrates a vibrant procedure of inside psychosomatic features that is wants, desires, and objective, which create an embarrassing, level of pressure in the human intelligence. These internal wants and ensuing tension then arouse and trigger actions to gratify the wants. Motivation is therefore seen as the stimulation to please wants. Furthermore, based on Maslow (1943), human wants raise other needs and demands provided that the present ones are met (Maslow, 1943).
Segmentation is an end user method that entails sectioning the market into sections of persons with comparable requirements, and same behavioral distinctiveness and who for that reason necessitate same tourism marketing combination. The more thinly the market is sectioned, the better the probability that the target places or attraction sites will be able to put into practice targeted marketing promotion to practical, distinctive groups of guests rather than haphazardly marketing to the market normally. Market segmentation, hence, has important connotation for resolving of tourism promotion strategy (Nick & Gyimothy, 2002).
1.4 Motivation in a Tourism Perspective
As the explanation and theories above demonstrates, in broad-spectrum human conduct is both target to, and comes from discontented wants. Human being does all things for a cause, even though at times it is not simple to decide specifically what the cause is. To appreciate motivation in tourism perspective is to understand what motivates tourists to select a specified destination. The definition of tourist motivation is the international assimilation network of natural and social forces which provide worth and route to travel options, conduct and familiarity (Uysal & Weaver, 1995). Why do a number of individuals choose to go to Milton Keynes on their leisure time, whereas others use their free time visiting to other places? If we imagine tourists create choice concerning their destinations for specific motive, we can take up that those motives are a purpose of their inspirations (Seyhmus & Uysal, 1996).
Human being has the appropriate motivation right to travel, the type of picnic and places to visit is often determined on the basis of perception or value of a variety of alternatives in the available in the market. It is additionally stated that human beings then travel for holidays due to various reasons and they take part in the creation of the picnics in a variety of ways (Ragheb & Tate, 1993).
Motivation in a tourism perspective thus responds to the problem of what excite an individual to take a trip. The responses will denote main aspects which inspire the traveler to buy a specific tourism item for consumption. The responses can be divided into three categories: free time, or business reasons, or all together. There are six major factors that inspire human being to tour certain target places: bodily, emotive, private, individual growth; class and social. In particular, persons who have also one or some or all of the six factors would decide a target place where they can gratify their inspiration. For example, bodily intention is the intention for rest; sensation motive may be the drive of reminiscence or yearning for a specific place or take pleasure in the romance, etc. Individual motivation might be the need of going to see acquaintances and relatives or create new acquaintances. Personal growth motive may well be the motive of improving knowledge. Motive for status comprise the urge to get something such as uniqueness or style talent and cultural motivation may perhaps be the motive of finding out new cultures (Siew, Lee, & Soutar, 2007).
Human being take a trip because of the factors stated above in order to fulfill their diverse needs, which on the other hand alter their options of target destination places. Therefore, inspirations are the things that influence people’s options of touring diverse ways. Based on theorists’ motivation theory, human being are motivated to do something or select a destination based on the wants. Human beings have a greater drive for achievement more than the wants for belongingness, power, and uniqueness. They strive hard in order to be distinct from others who may have the same needs. They have a drive to do things in a different way from others since this set of human being like to take personal accountability so as to get their own fulfillment from their accomplishments. On top of these they like to set target for themselves in a way so that their goals are not low and easily achievable, and not too high to be realized. In the area of tourism, tourists with high needs for achievement avoid high and low risk situations (Ragheb & Tate, 1993).
Human beings with needs for affiliation more than other needs require the harmonization in interaction with others. In other words, they are vulnerable to the manner, feelings, or conditions of others. Comparable to the wants for belongingness in Maslow’s hierarchy of needs, the affiliation need is a motivation that can influence people’s attitude and manifest itself in diverse ways. In tourism, affiliation needs is revealed in the need for social encounters that is the need to convene new people, friends and family so as to have good times. Those who have soaring needs for authority like to control and direct others by means of power. Consequently, they have a preference to tour to places where they are famous and where they believe they can cause others appreciate them. In other words, tourists with elevated want for power may have a preference for activities where they can cause others, defeat competitors, win negotiations and make views, or achieve power (Uysal & Weaver, 1995).
Milton Keynes is a tourist destination that has motivated people to visit during their leisure time. This tourism destination have attracted tourist because of the varied attractive sites such as the hotels, restaurants among the many (MiltonKeynes report, 2009).
1.4.1 Leisure Motivation Scale
There are four causes or aspects that can decide the fulfillment derived from leisure interest. These four causes, which often encompass fourteen items, are academic, social, capability, and motivation averting motives. The academic motive evaluates the degree to which persons are motivated to connect in leisure actions which comprise mental tasks such as education, discovering, ascertaining, contemplation or inventing. This mean that academic issues would head persons to come out in leisure tasks which they believe would add to their wisdom (Vroom, 1964).
Secondly, the social constituent evaluates the degree to which individuals involve in leisure actions for social motives. This component comprises two basic requirements, the need for companionship and interpersonal relations, at the same time as the second is the want for the high regard of others. These needs stimulate persons take part in activities that might fulfill their wants of possessions, self-esteem and admiration from others (Maslow, 1943).
The third motive, the capability motive inspires persons to look for challenges and compete. Finally, the stimulus averting motive evaluates the force to run away from life circumstances. It is the necessity for some persons to stay away from collective associates, to seek privacy and calm surroundings to search for rest and to unravel themselves. This last motive constituent involves the reality that a number of people need to run away from their everyday life to get something fresh and to relax (Terry & Hsu, 2006).
The destination site adopted has utilized all the aspects described above. We see that there are various education institutions within the Milton Keynes that ranges from small institutions to higher institutions of learning. This alone motivates an individual to visit such a destination points as there are social activities aiding people to learn and at the same time to enjoy themselves (Solomon, 2004).
1.4.2 Push and pull theory of motivation
In general, tourists’ inspiration is described by means of the definition of a force that causes individual to travel. This is split into two categories: internal forces and external forces. According this theory, tourists are pressed by inspiration into the choice creation of touring and are drag by target distinctiveness. The push inspiration is justified by need for run away, relaxation and recreation, status, wellbeing and health, exploration, social contact, family unions, and enthusiasm. In dissimilarity, the pull inspiration is established by targets places appeal, for example, seashores, state museums, or established cultures (Siew, Lee, & Soutar, 2007).
Appreciation of the foundation of tourists’ inspiration can assist Tourism Company or companies to develop good company procedures and policies to uphold and expand their own industry. To appreciate motivation theory in a tourism perspective is to recognize what inspire tourists to prefer a certain target places. Through this, Tourism Company can decide how to employ the learning to know what feature (s) of their position inspires tourists to tour, and in turn how to keep and build up the location to draw more tourists. If not, they may possibly just grow without any design or purpose. This occasionally would head to a predicament of building away from what clients need and want (Ragheb & Tate, 1993).
Understanding needs theories will assist us be aware of what clients want during their lodge as the main stage want, as well as what will be the subsequently phase of their wants, so that we can arrange how to convene all of their prospect and requirements. This is superior to simply presenting services and goods with no any order of precedence. Secondly, it will assist in spotting what type of tourists are in which phase of the necessities theories so that focus is put on how to meet the requirements as they increase and progress. The custom at times is not precisely the similar as what the theories investigated, nevertheless, by learning the theories we can know the usual rules to go after in doing trade in a tourism area (John & Horner, 2003).
Milton Keynes is an all round attractive city that pulls and push individuals and families to visit because of the available facilities that caters for the needs of all people. The attraction site has considered different age levels ranging from the young to the adults (MiltonKeynes report, 2009).
1.4.3 Wants-based Motivation
The idea of satisfying wants and the balance that fallout from congregating wants are basic to the majority motivation theories. There is an implied postulation in all tourist inspiration studies, that the client will select the target or type of celebration or vacation that will most excellent meet the desires or requirements. The idea of balance that fallout when no inconsistency arise amid the fancy conduct and actual conduct. This idea of symmetry is intrinsic in the majority theories of motivation. Maslow’s logical arrangements of needs theory even though developed in the area of psychology has turn out to be extensively important as the well known general theory and has been used to account for motivation in various disciplines. Needs-based inspiration theories have been disapproved of in the tourism and other client’s motivation literature. Even as they have been recognized as valuable for attracting attention, a broad spectrum of diverse wants that can inspire human actions call for more than a comprehension of human wants, since information of people’s wants will not automatically tell us what they will really do to satisfy such wants. Certain disapproval of Maslow’s hierarchy needs theory comprises its recognized power of being adequately general to cover the majority of list of human needs, imply that the ideas are too general (Maslow, 1943).
Despite this disapproval, Maslow’s hierarchy is well thought-out as a helpful instrument for comprehension of consumer inspiration, creating marketing strategy, suitable advertising attraction and as the foundation for market differentiation and product location since consumer commodities often act to fulfill each of the need stage. Maslow’s need hierarchy is an emotional activator that permits marketers to converse with their target clients on an individual, significant level that goes above product value. In specific, the manner in which an people’s needs might be interpreted into motivated conduct is essential when dealing with tourist motivation and other issues must be put into thought if the justification of tourist inspiration is to be of beneficial in foresee tourist behavior (Terry & Hsu, 2006).
Based on the theory, the destination site is one of the best sites that can satisfy the needs of a human being according to Maslow’s hierarchy of needs. The need of belongingness and self esteem can be fully met at Milton Keynes (MiltonKeynes report, 2009).
1.4.4 Expectancy Theory of motivation
Forecasting on the cause of motivation on conduct also necessitates an awareness of the procedures whereby wants are changed into aggravated behavior and, in specific, of the way people prospect give aggravated conduct its direction. Wants-based theory of motivation is mainly based on a content theory of inspiration and disregards more new progress in motivation theory such as employment motivation theory, expectation theory or valence instrumentality- expectancy theory. Vroom (1964) put ahead two equations the initial one of which has been employed to account for or forecast work-related preference and job contentment, the second being to give details or calculate work-related selection, staying in a job and job endeavors (Vroom, 1964).
Expectancy theory, all through the ideas of valence (prettiness), instrumentality (for attaining other result) and expectancy state the thought that inspiration is a function of the prettiness of the outcome and the expectation of attaining that result. Expectancy theory permit a lot of the existing ideas tourist motivation study to be included within a definite theoretical structure i.e., wants theories such as Maslow and Murray; emotional characteristic of tourist motivation – the requirements which bring about the wish to tour in the first place – with the cognitive characteristic – the choice creation concerned in selecting whether to go on holiday and, if so, where (Nick & Gyimothy, 2002).
They further assert that work-related (or holiday) favorite and career (or holiday) substitute appear to have the furthermost significance to tourist motivation. It is suggested that an expectation model of holiday first choice and alternative, which include wants, prettiness (valence) of holiday characteristics, comparative favorite of dissimilar holidays, and the inspiring issues of know-how of holiday target places distinctiveness; restraining issues such as cost, desired place; expectations; and influential of holidays for giving characteristic. All of these are predisposed by a diversity of informants including flyers, guide books and other people’s knowledge, and also by the personal own encounter of preceding holidays of the similar or a comparable type; therefore the feedback loops built into the representation. They also come up to a theoretical selection of holiday which recognizes the significance of both push and pull aspect (Solomon, 2004).
The expectation theory of tourist motivation stresses the association between inspiration, favorite and selection. It is essentially a wants-based model than a values-based model of tourist motivation that then looks at prettiness, instrumentality and prospects of results as well as the manipulating factors of know-how of tourist goods distinctiveness and other restrictive factors. There is a substitute to see inspiration and anticipation configuration, the undertaking of which is based on both the deeds notion of drive lessening and the cognitive concept of outlook and ideals. A restriction of the expectation theory and model, is that the involvedness of expectancy theory creates it hard to use the mock-up to foresee individual conduct, and hard to gauge since there are a lot of variables. This complex method of examining inspiration, work to draw attention that tourist motivation is, itself, a multifaceted area of interest (Ragheb & Tate, 1993).
1.5 Segmentation of the Tourism Market
A tourism market contain of all persons with adequate motivation, capability and chance to tour a target place or appealing centre. Market segmentation is an end user method that entails sectioning the market into sections of persons with comparable requirements, and same behavioral distinctiveness and who for that reason necessitate same tourism marketing combination. The more thinly the market is sectioned, the better the probability that the target places or attraction sites will be able to put into practice targeted marketing promotion to practical, distinctive groups of guests rather than haphazardly marketing to the market normally. Market segmentation, hence, has important connotation for the resolving of tourism promotion strategy (Nick & Gyimothy, 2002).
While segmentation is supposed to be concerning trying to choose which reasons or variables contain the most persuasions on tourist behavior, in real sense what majority of individuals describe as segments are only classifications. Furthermore, segmentation can be: a priori – where the principle used to split the market is identified or a posteriori – where no such previous information is available. Proof put forward that many target places and appeal sites still support a priori segmentation method using simply available geographic or demographic facts. Specified that this technique of subdivision has been identified as being as helpful, its significance evidently is doubtful in nowadays aggressive tourism market. More positively, the majority victorious and modern UK target have at present build up segmentation plans depending on tourist motivations and behavior instead of being lured to the conservative way of easy grouping (Terry & Hsu, 2006).
1.5.1 Geographic and demographic segmentation
This is a methods based on distinguishing marketing plans that have conventionally been supported by regional or demographic differences in tourist attitude. These techniques are helpful as an opening point for tourism companies inhibited by inadequate capital to acquire a better comprehension of their market. They are fairly simple to describe and evaluated and the data used to assist section the market is often liberally obtainable from public resources. In this esteem they do give a transparent if somewhat limited outline of guests and other tourism clients that might be utilized to expand marketing plans such as choosing where and how to encourage tourism goods (Terry & Hsu, 2006).
However, these methods have a variety of disadvantages: First, They are outdated and primitive, partly since they depend profoundly on quantitative and based on facts data to create universal postulation which are then applied to attempt to give explanation on tourist conducts. Secondly, they lead to major label that typically wrap up or conceal significant difference in tourist attitude. Yet a lot of target places, attractions sites and tourism provider business still put huge stress on geographic and demographic sectioning, which is called the past methods terminated a decade ago. So as to create a supplementary exhaustive outline of possible markets it is obvious that the real advantage of assuming a geographic and demographic segmentation tactic is as a basis for further extra tourist oriented techniques (Uysal & Weaver, 1995).
1.5.2 Profile Segmentation
This is the combination of geographic and demographic segmentation factors to evaluate tourism clients by where they reside. This grouping method is put on the foundation of facts such as kind of housing, profession, number and age of kids and way of life. This method can as well be applied to discover the demographic distinctiveness of specific environs. Separating the tourism market by alignment of persons in terms of one or more outline features like age and way of life divisions can assist destination marketing companies to liaise with them more successfully and efficiently, mainly when joint with extra lifestyle facts where probable.
Even though these outlines are comparatively simple to generate and used, they are in the major comparatively unfortunate methods of prediction of tourists’ leisure benefits and related touristic conduct. In current years, though, there have been several efforts by business professional companies to create geo-demographic sectioning more complicated to give a more improved method to tourism marketing (Terry & Hsu, 2006).
These arrangements are fundamentally multivariable categorization of the Milton Keynes inhabitants accumulated on the foundation of quantitative information. They give helpful insights into tourists’ conduct, which are then employed to aim particular neighborhoods or market sections so as to give high price tourism goods and services and better stages of tourist contentment (MiltonKeynes report, 2009).
1.5.3 Psychographic segmentation
This technique attempt to classify persons based on the lifestyle and their characteristics of each individual. This has come to be referred to as too difficult to use but it is fashionable. This is due to the fact that it encompasses intangible personality and variables such as the beliefs, opinions, interest, and aspirations of potential tourist or clients.
This method has come to be used due to the major disadvantages and limitations of segmentation method and these assist decision makers to get deep into the mind of the tourist so as to get an understanding of their driving behavior (Nick & Gyimothy, 2002).
While psychographic segmentation was regarded as less technical than other type of sectioning, scientific growth now signify that this slight segmentation method is known as being extra suitable for the tourism division. Without a doubt, the augmented advancement of psychographic sectioning is now giving full end user insights to permit tourist target places to grasp jurisdiction of their guest wealth and aggressively plan and make target places knowledge to match the requirements of numerous tourist segments at the same time. Geo-demographic techniques, like CAMEO which integrate some way of life variables, have been employed in this competence by targets like Milton Keynes (Seyhmus & Uysal, 1996).
1.5.5 Multivariable segmentation
This technique entails setting an assortment of pertinent characteristics pull out from all four groups in conjunction with the tourist market measured. In reality, as the business geo-demographic structures have progressed they have as a result become multivariable throughout the integration of geographic, demographic and psychographic features to partition the market into valuable and useful clusters. The method necessitates that tourist clients are grouped based on their surroundings, wants and requirements (Ragheb & Tate, 1993). To decide whether the tourist market has been appropriately divided, the subsequent standard should be taken into account: Effective and distinctive needs, Measurability of client’s behaviors, Accessibility of target places put in mind the cost, Actionable to allow full exploitation of opportunities arising (Vroom, 1964).
1.5.6 Ark Leisure segmentation technique
As viable target places and tourism companies seem to build up marketing approaches that aim openly specific and distinguishing sections with high significance tourism proposal to distribute genuine knowledge and better stages of assistance, it is no longer adequate to fragment exclusively by place, socio-economic or geo-demographic distinctiveness. Objective marketing approaches conventionally describe target markets as ‘ABC1s’ or employed demographic facts to forecast their capacity and readiness to tour a place or attraction site in the Milton Keynes (MiltonKeynes report, 2009).
Nevertheless, this kind of subdivision is nowadays well thought-out to be too conventional and unsophisticated. This is as a result that it does not explain for personal favorite and flavor, ideals and familiarity or other considerable pressure on tourism acquisition actions. Furthermore, behavioral and psychographic classifications are also taken to be unsuitable for many target places owing to their incapability to foresee upcoming behavior or to explain for disparities in life situation correspondingly. Ark Leisure model in is an advanced and extremely distinguishing values-based structure. This gives a fragmented and processed client facts and detailed comprehension of diverse kind of guests in each part of the market (Siew, Lee, & Soutar, 2007).
The Ark Method when refined consists of three elements: Ambitions- this element identify sections based on insight and decision of worth, Life issue and alternative drivers- for instance family lifestyle, and Tourism buy circumstances – housing and desirability inclination, reason of tour, and fulfillment with alternatives formerly completed. One cause for its reputation is that consumer have been capable to outline their guests to set up the precise causes why and how unlike target places or desirability inside a section demand to diverse guests. This method is preferred since it acknowledges that ideals and way of life shape visitors tourism requirements, which then persuade and influence their trip. The insertion of the procure position aspect gives an added segmentation advantage as it mirror the reality that populace make voyage and other tourism choices related on whether the target place or attraction site convene both their ambitions as well as realistic and personal necessities (John & Horner, 2003).
To appreciate motivation theories in a tourism perspective and segmentation is to recognize what inspire tourists to prefer a certain target destination. Through this, Tourism Companies can decide how to employ this to know what feature (s) of their position inspires tourists to tour, and in turn how to keep and build up the location to draw more tourists. If not, they may possibly just grow without any design or purpose. This occasionally would head to a predicament of building away from what clients require.
Understanding these theories will assist us be aware of what clients want during their stay as the main requirement, as well as what will be the subsequent phase of their needs, so that we can arrange how to convene all of their prospect and requirements. This is superior to simply presenting services and goods with no any order of precedence. Secondly, it will assist in spotting what type of tourists are in which phase of the necessities theories so that focus is put on how to meet the requirements as they increase and progress. The custom at times is not precisely the similar as what the theories investigated, nevertheless, by learning the theories we can know the usual rules to go after in doing trade in a tourism area.
Devoid of suitable and successful segmentation, all other promotion actions are possible to be average at best. At the same time as the tourism division has conventionally remain behind other businesses in making use of the idea of segmentation in promotion choice creation, there is proof to propose that more and more improved market assortment is now the foundation on which reserve distribution resolution at a strategic point are completed.
There are nevertheless far too numerous target places, attractions sites and tourism firms, though, applying the typical, but out-of-date and unrefined segmentation foundations to describe their markets. Optimistically, in their hunt for tourist segmentation difference obtained from geo-demographics, some target places have changed to profitable segmentation methods.
Even as these are obviously an enhancement on the conventional, unsophisticated segmentation foundations and can offer more polished tourist outline, in real sense these were originally intended for non-service businesses, imply that they do not at all times produce the multi-dimensional advantages of the Ark Leisure method based on the values. Eventually, resolution on how to section the tourist market and the method to use will be reliant upon the extent of the place of tour market scheduling requirements, capital and skills. It is important to note that improved comprehensions of the distinctive and homogenous requirements of diverse tourist category depend on their inspiration and approaches will permit the tour place or attraction site to superbly adjust the complicated tourist suggestion.
It has becomes visible that the majority of successful tourist places have assumed a comprehensive segmentation scrutiny without being dragged down the cheaper way of simple clusters. They have then aimed at those sections that followed their strong point before scheming complex tourist knowledge where all features of the extensive marketing mix are incorporated in conjunction with the requirements of the chosen aimed section. Milton Keynes has successfully assumed the comprehensive segmentation and as such has motivated tourists to make the city as their destination choice. They incorporated motivation theories in the segmentation of the market niche and this has allowed them to distinctively curve and capture the market niche. This is a move that all other destination sites ought to ape so as to competitively attract tourist and promote tourism in the world.
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The Tourism Policy Review in Italy Concept ap us history essay help: ap us history essay help
Tourism Policy Review in Italy
In the most recent 50 years, tourism has been changed from a recreation movement into a major business segment around the world. From the beginning, it was moved in the world urban areas and destinations, while today it is getting to be progressively worldwide, fusing new ends and far from spots. Tourism is a core fixing in the monetary improvement technique of numerous Countries. The appeal of tourism as the generator of wage, work, charge accumulations, and remote trade income has driven numerous nations to enter the rivalry of drawing in universal explorers to their objectives. The dynamite development of tourism has brought its potential as a motor for monetary development to the consideration of arrangement producers, additionally its possible issues if left uncontrolled.
Tourism as a complex financial movement has numerous linkages to an extensive variety of other financial divisions and exercises, consequently having positive multiplier impacts and a possibility to go about as an impetus for monetary advancement. Especially, at a neighborhood level it offers opportunities for vocation and wage, prodding provincial and nearby financial improvements, which are frequently extraordinary chances for some little and removed spots with constrained different alternatives for improvement.
Tourism has fundamentally helped the ecological corruption, negative social and social effects and living space fracture. Tourism’s unplanned development has harmed the regular and socio-social situations of numerous ends. As the tourism becomes at an end of the line, major financial, socio-social furthermore ecological changes happen. As a result tourism has turned into a need field in strategy making at neighborhood, local, national, supranational and universal level.
Thus, the thought of maintainable tourism develops so as to preserve and protect the regular assets, human prosperity and long haul financial practicality of groups. Three are the measurements of reasonable tourism: monetary, socio-social and environmental measurements. Firstly, there is probably maintainable tourism must be monetarily achievable, because tourism is a monetary action. Financial supportability, in this respect, suggests upgrading the advancement development rate at a sensible level with full thought of the cutoff points of the end of the line environment. Additionally, the monetary profits from tourism ought to be genuinely decently dispersed all through the group. Besides, sociocultural supportability suggests regard for social personality and social capital, for group society and its benefits, and for a fortifying of social cohesiveness and pride that will permit group inhabitants to control their lives. Thirdly, natural maintainability perceives that characteristic assets of the individual group and the world ought to be no longer seen as inexhaustible and may be, always being drained. The characteristic environment must be ensured for its inherent quality and as an asset for the present and future eras. As of late there has been a becoming call from policymakers for natural rules, markers, and other research yet so far few prompt answers for their issues and answers to their solicitations are to hand. The many-sided quality of the issues included, and different challenges have likewise restricted the degree to which research has been nourished into the choice making methodology.
Tourism is perceived as being one of the world’s primary monetary exercises. Concurring to the most recent UN to measurements, in 2008 there was in excess of 900 million global landings expanded by very nearly 35% contrasted with 2000. Tourism has become quick as an aftereffect of innovative and hierarchical changes encouraging transport at decreased expenses giving chances to recreation and set out to a more extensive section of current social orders. Owing to the growing of the tourism division, conventional and developing tourism goals are confronting expanding weight on their regular, social and financial situations. It is currently perceived that uncontrolled development in tourism going for fleeting advantages regularly brings about negative effects, hurting nature and social orders, and devastating the very premise on which tourism is fabricated and flourishes. On the opposite, when tourism is arranged, created and oversaw utilizing supportable criteria, its profits can spread all through society and the common and social situations. Amid ’60s, tourism was considered a “smokeless industry” and the dangers connected with its uncontrolled development were at that point obvious. Host social orders have gotten to be dynamically mindful of the issues of unsustainable tourism, and manageability concerns are progressively being tended to in national, provincial, in addition, nearby tourism strategies, systems, and arrangements. What’s more, more voyagers are presently requesting higher ecological guidelines from visitor administrations and additionally a more prominent responsibility to nearby groups and economies.
Uncontrolled ordinary tourism postures potential dangers to numerous characteristic ranges around the world. It can put tremendous weight on a region and lead to effects. For example, soil disintegration, expanded contamination, releases into the ocean, common environment misfortune, expanded the weight on jeopardized species and increased weakness to backwoods fires. It frequently puts a strain on water assets, and it can drive nearby populaces to go after the utilization of basic assets. In this setting, manageability has turned into the focal issue in tourism advancement arrangements all through the world. A considerable measure of foundations has created a progression of instruments that make it conceivable to consolidate manageability criteria in the arranging, advancement and administration of tourism. An expansive point of view is expected to consolidate cross-sectorial issues, in an ace dynamic arrangement to consider the social, financial and natural tourism. Before, ecological issues had been seen as unavoidable results of human action and financial advancement. In such a viewpoint, natural security is considered by numerous as a requirement for advancement. Thus, the advancement of tourism is considered as compelled by natural enactment. Improvement prospects depend on as it were of natural quality, and tourism security is key not just on moral grounds but since the advantages (common and social) are the premise for human exercises. The asset security is crucial for the long haul advancement of tourism itself, what’s more, to different reasons supporting legacy preservation. It is broadly perceived not just that an uncontrolled tourism extension is prone to prompt natural debasement, additionally that natural debasement, in this way, represents a genuine danger to tourism exercises.
It brings to the cutting edge of the open approach the issue of how tourism helps maintainable advancement. Ensuring the earth was imagined as complicatedly connected to social and financial advancement. In parallel, new ends of the line are liable to rise, not prepared to adapt to the weights of tourism. It would require cautious evaluation of qualities, shortcomings, opportunities and dangers from tourism development and advancement in line with sustainability in tourism.
The overall assessment of Italy’s Tourism Regulation
The present policy progress envisages both augmented emphasis bestowed to tourism and at the same time devoid of integration of tourism policy in the entire development strategies. Irrespective of the tourism administration stability, there is dwindling efforts both from the stakeholders as well as in financial support. In Italy, multiplicity of the stakeholders who get actively engaged in tourism possesses a challenge in relation to governance as well as an organization in the realization of comprehensive and efficient strategy in Italy. The framework in place presents a system of tourism that is coherent as it permits integration in a horizontal manner. There is a gap in relation to tourism policy development as well as the fragmentation of the existing policy measures. The Department of Tourism does the accompanying assignments:
in a joint effort with districts and independent territories, expounds and characterizes the national tourism arrangements;
receivesmeasuresforthe tourism part, andalsofor arranging andadministration of structuralstores;
directs ENIT State Tourism Agency;
gives supports and motivations to create tourism request;
advancesspeculations both in Italy andabroad;
conveys accreditations andauthorizations to remote experts;
overseesrelations with universalassociations;
Areasanddifferent stakeholders are spoken to on theofficialboard. Itseeks after thedestination of advancing Italy as a goaland its common, what’smore, social legacy. It additionally doesstudyanddistributionscreateadvertising, andadvancementsystemswentforsupportingthe Italian vacationer segment, as a team with nearby powersanddifferent stakeholders. Plan Forecast for 2010 forthe National Tourism Administration (Department of Tourism) was 46,274,035.00 Euro of which 20,594,342.00 Euro reservedfortheoperations of the NTO (ENIT). In Italy, Regions distribute to thesegmentmonetary assets they could call their own. Mostrecentinformation alludes to 2009, at thepointwhenthegenuineconsumptionfor tourism wasuniversally 1,611 million Euro. The Department of Tourism leads a Project wentforgivingthe Convergence Regions with devicesandtechniquessupportingtheconfiguration in additionadministration of advancementplans in the tourism part.
In the system of the Inter-territorial Program on Cultural, Natural and Tourism Attractors – ERDF 2007-2013 went for advancing the social and monetary improvement in the Joining Regions through the valorization of the social, common and scene legacy, the monetary allowance apportioned 49,907,000.74 Euro.
Besides, an alternate co-financed task, conveyed out in the system of the Inter-local Program on Cultural, Natural and Tourism Attractors (plan Euro 139,200.00 Euro) came to a productive end with the creation of studies on the tourism economy of the four Convergence Locales, including information on visitor structures and tourism streams in those districts.
The Legal Foundation
In looking at the Italian constitution, there is not mention of the tourism legislation. Even though, not given a thought, the tourism sector in Italy exerts a great impact on another task where the nation has constitutional accountability. It is, for this reason, gives the state an implicit responsibility in the area of tourism and hence can implement administrative structures and agencies to be in charge of the tourism section in Italy. In the constitution, the state divides responsibilities among the territories with authority to regulate all tasks lying under the remit of the state. Owing to this, the regions in Italy get empowered to take essential roles in tourism tasks. As such, there are limits on the intervention of the state in matters of a region but concentrates in tourism matter that of national significance.
The most thorough system law controlling tourism is Law n.135 of 2001. Taking after the Constitutional revisions, with law n.181 of 18 May 2006, the general obligation at the national level was given to the Prime Minister’s Office, where the Bureau of Tourism was situated up through Law n. 286 of 24 November 2006. At the local and neighborhood level, the Constitution itself (art.117) entitles Regions and self-ruling Provinces with selective authoritative forces. In this manner, every-one of the 20 Italian Districts has its own laws and regulations in the field of the tourism: as indicated by the fundamental standard of subsidiarity, every one of them take the standards set out both by the EU and national Italian enactment. Specifically, the Government declaration of 13 September 2002, receiving the assertion marked between the focal State and the Regions and independent Provinces on the harmonization, advancement and improvement of the tourism division, reaffirmed the standard that Regions ought to agree to responsibilities attempted by the focal Authority.
These are the determined rules for a “National Strategy to upgrade the improvement of tourism in Italy setting up a team to advance Italy as a terminus, through a solid activity of showcasing and correspondence;
upgradingtheassociation in themiddle of nationalandprovincial/nearby organizations in order to facethedifficulties of logistics, foundations, systems of administrationsandtransport;
consenting to vitalarrangementswith key global visitadministrators;
guaranteeing business-situated administration of majorsocialandgameoccasions;
enhancingthe level of expertpreparing;
supportingendeavorseager to incorporatethenew ICT in their improvementplans;
Redesigning the National Observatory of Tourism, with the points of upgrading the unwavering quality of information and gathering.
The main viewpoint recognized of this radical change was the creation of new avenues and new ends which rival those in Italy, however in the meantime it was focused on the opportunities offered by the development of visitor streams from rising nations, particularly China, ought not be overlooked. The second viewpoint highlighted concerned the gigantic move in what visitors are requesting, in that they are no more substance to be simply uninvolved guests, yet are quick to effectively submerge them in a widely inclusive experience, communicating with the spot they are staying in. This now implies that, in settling on traveler goals, global buyers look to various variables which contrast from those that Italy has generally depended on (to be specific, craftsmanship and regular fortunes) as its key offering focuses and as advocating its status as a main objective.
It was recommended that this is a circumstance that likewise requires a radical reevaluation of the authoritative methodologies used to direct the business previously. Regarded considerably more urgent to tending to these difficulties, nonetheless, was the issue of administration. It was noted that the current division of obligations between the state and areas in the field of tourism – as an aftereffect of revisions made to Title V of the Constitution – would appear to be completely wasteful. There was appropriately an apparent requirement for the state to be reverted with the ability to halfway organize matters relating to tourism, empowering it to set principles and plan limited time techniques, with neighborhood powers left to execute those strategies on the ground. It was surrendered, then again, that one issue stays to be defined, specifically, that of recognizing the institutional body that would best facilitate tourism technique at a focal level. While the Ministry of Cultural Heritage has tackled obligations around there, it was felt that the Ministry must show an all-encompassing vision of the area and not one skewed towards customary social tourism, in this manner permitting the business to grow its viewpoints.
It was accordingly viewed as important to look to the key noteworthiness of the nation’s tourism item and the significance of the setting in which it is advertised. Attention was set on the key requirement for imported methodologies that lead the different distinctive players to work towards clear targets. Additionally seen as urgent was the redefinition of the relationship between the general population and private circles, particularly as respects the administration of social legacy resources. Undoubtedly, enhancing the utilization of open and state-possessed offices – with allowed utilization zoning that supports the tourism division – was seen as an initial move towards supporting nearby improvement and conquering the hindrances that keep on obstructing the appropriation of a more market-arranged methodology to dealing with the nation.
There was an accord of supposition, be that as it may, that with the end goal Italy should get to be focused once more, it must additionally devise methodologies went for enhancing its tourism advertising. Most importantly, this involves dividing the target business sector, including in order to find out how to fittingly pass on the exceptional exhibit of energizing prospects that the nation brings to the table to the different classes of sightseers. Also, it is important to assemble lead ventures that empower the advancement capacities of a specific neighborhood be moored to individual firms or activities, simultaneously contriving genuine benchmarks for commercial enterprises and administrators in a particular range. Also, the members indicated an imperative need to rebuild the cordiality business, empowering inns to particular proprietorship from administration of properties.
In conclusion, more noteworthy resort to innovative development and e-administration procurement has until now been the situation was seen as basic keeping in mind the end goal to invigorate the offering and hook on to new traveler streams. It was reached that once the presentation has been assembled around these foundations, it is then important to market it effectively. Italian tourism ought to as needs be advanced through a solitary and promptly conspicuous national brand. In fact, the development of such a brand could be the genuine legacy of Expo 2015, a chance to give a facilitated showcase of Italy’s different neighborhood offerings. Also, regardless of the challenges, this significant occasion is situated to occur at an ideal crossroads, with worldwide financial specialists again turning their look to Italy. It is a case – it was asserted taking everything into account – of not missing this opportunity, by verifying the presence of a stable administrative structure, clear venture time spans, and additionally fit and skillful go-to accomplices and foundations – all vital components to pull in capital and advance recuperation in this and different divisions of state economy.
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UNDERSTANDING THE WORLD OF BUSINESS history assignment help ireland
World of Business
1- Trace the growth of a specific organization through merger and/or acquisition. Explain some of the rational for each merger/acquisition; describe any economies of scale realized?
Delta airlines and Northwest airlines Merger
Delta and Northwest airlines merger is one of the greatest mergers in the airline industry creating the world’s biggest carrier. The merger which was approximately $3.1 billion is expected to restructure the US airline industry and will use the Delta name in its operations with its headquarters situated in Atlanta. This huge merger between the third largest Delta and the fifth largest Northwest airlines will help in creating a global giant with more than 700 jets, 6400 daily flights, almost $35 billion revenue yearly and the new company’s value of almost $17.7 billion, far above their current market value.
The merger will also have approximately 75000 employees globally with no hub closures expected and a 1.25 delta share for each of the Northwest airlines shareholders in addition to the seniority protection of the frontline employees for both airlines via fair and equitable seniority integration. The merger of the Delta and the Northwest airlines was also facilitated by the fact that they have very few overlapping routes which may interfere with their operations since Delta had most routes in Europe and Latin America while Northwest concentrated its business in Asia (Fedor Web).
This major merger in the airline industry will further marry the Delta’s route networks in Europe and Latin America with the Northwest’s Asia networks and further create more routes thus widening its networks. This giant merger is expected to initiate significant and plausible efficiencies that will undoubtedly make the US and world’s customers’ gain greatly from savings on expenses for airport operations, technology and suppliers as well as heightening competition in the carrier industry.
The merger was aimed at benefiting the two parties involved by making them more efficient in service provision and their respective operations. The merger was also intended to increase international presence and the ability to fund long term investments in the airline industry as well as offsetting the higher fuel prices which has fundamentally affected the financial viability of the airline operations. The merger will not lay off any employee but will tend to raise the salaries of all the employees for both airlines and further reduce their previous pay cuts that existed before the merger (Fleming Web).
The merger of Delta and Northwest airlines is intended to provide a better solution of meeting the stakeholders’ objectives. The merger is expected to help the financiers, employees and passengers achieve their main intentions since it will allow the new company to make profits that will be used in increasing the dividends, raising workers pay, and satisfying their clients respectively. A stable and continuous profit will be maintained by the company to sustain its operations hence improving the various stakeholders’ aims. Other benefits that may be accrued are creating a global US carrier that intensively competes with other foreign airlines as well as enabling their customers from across the world get access to a global route system that will allow them to travel anywhere just by using same company’s facilities (Fleming Web).
Increase of destinations greatly helps in adding further schedule options and extra opportunities to make more money while redeeming frequent flyer miles thus making a more financially stable airline company with a vast opportunity of growing and expanding. All the customers from both the airlines will benefit from each other’s greater services and strengths to various destinations as well as easing the integration risk due to their complementary networks and common membership in the Sky Team alliance. Although this merger was initially opposed by the Northwest’s airline due to the anticipation of job loss, there was a great promise of pay rise and good working conditions for all the employees due to the wonderful profits that were made from the merger. Due to the wider networks, the company will reach greater markets that its competitors may not reach hence causing threat to the existing small airline companies (Fedor Web).
The merger will lead to the benefit from the economies of scale by reducing each other’s fixed costs especially the cost of fuel since the new bigger firm will have lower average cost and will further be allowed discounts for most of their purchases due to bulk buying. The larger company may also get a very favorable rate of interest and a less costly head office to run rather than the two headquarters for both companies that existed before. The merger further intensifies competitive advantage in the airline industry due to greater investments in R&D because of the available high profits that can be used to finance risky investments. Merger may also protect the companies from closing down due to liquidity challenges and further improves on diversification in routes and sharing of management skills (Fleming Web).
2- Create a chronology of events leading up to a chapter 11 filing of a specific organization; continue the chronology through the organizations emergence from bankruptcy?
Eastman Kodak Bankruptcy
Kodak Company which was one of the iconic American companies saddened many people worldwide when it surprisingly applied for bankruptcy making it ranks as the top local business news. Most people blamed the universal technological trends which gulped up retailers, publisher and other great and small industries on Kodak’s decline. The management of Kodak was initially seen as failing the huge company by not coping up with the technology in the imaging, copiers and other facilities and products that the company deals in (Hill & Gareth 383).
However, in August 2004, the company announced its intention to digitalize its operations after almost a century of service without transformation under the leadership of Carp. Transformations were very challenging because it required both transformation in market shift and obsolescence of their main research and various operations that reduced the competitiveness of the company (Hill & Gareth 383)
In 2001, when Carp took over Kodak Eastman as the CEO he made several changes in the company’s culture to facilitate the company’s performance by recognizing digital expertise to help the company succeed. He further ordered the redesign of the Kodak Park by injecting millions of dollars to affect the project’s success. Under his leadership, Kodak shocked many people in the industry by building a leading brand in digital camera such as Easy Share which ranked first in the US market. They additionally built a primary site for online photos but it was unfortunate since the printing of images, which was the consumer’s digital strategy, was unsuccessful. Kodak, although concentrated on its cameras, invested more on the cameras simply because it covered larger part of their market share (Hill & Gareth 383).
Their hard copy pictures which they strived to excel in also had very little demand due to the internet which made viewing and sharing easier thus altering customers’ attitudes on. Kodak did not anticipate the effect of phones on the digital cameras even as their digital cameras proved expensive to the consumers. However, the question that lingers in most people’s mind is whether Kodak was wrong in adopting new technology such as introduction of digital photography. Kodak failed to merge with many companies during financial times to boosts its finances and R&D thus making it trail behind in the industry which it once dominated (Hill & Gareth 383).
Kodak’s strategic management failed to foresee the effects of digital phones which did not require films just as Fuji film did in the market. The company did not know how to respond to the increased use of digital cameras, USB cables, and SD cards which were more suitable thus eventually killing the Kodak business. Kodak sold most of its profitable subsidiaries such as its copier division hence reducing its revenue. The company was then unable to pay its creditors and even engaged in layoffs due to inability to sustain its operations thus reducing its local employees from 60,400 to almost 7,000, closed 13 manufacturing plants and 130 processing labs since 2003.
Kodak is working extra hard to arrange for funds of almost $844 million that would see it exit emergency in mid 2013. The company and its subsidiaries filed voluntary petition for reorganization which is intended to improve its liquidity both in the US and abroad. They plan to solve resolve legacy liabilities and focus on its valuable business line even after making pioneering investments on digital and materials deposition technologies which generated almost 75% of its revenues in 2011. The company has successfully acquired a fully committed $844 million credit facility which has been approved by the court from the Citigroup to boost its liquidity and working capital. The company strongly believes that it has enough liquidity to smoothly continue with its business in the normal line whilst paying its employees wages and maintaining its customer programs (Waters & Bradshaw Web).
The company will seek to address its cost effectiveness as they abandon some of its traditional businesses by coming up with a lean, world class, digital imaging and profitable company. The company further promised to be committed in a culture of collaboration and innovativeness which they urged all their employees to adopt for betterment of the company. It will reorganize its structure and operations to fit all the objectives of its shareholders by deeply consulting great firms such as FTI Consulting Inc. on the better ways of improving the company. Kodak will monthly file its monthly reports with the Bankruptcy court and also file its quarterly report with Securities and Exchange Commission (Waters & Bradshaw Web).
Target Corp., Consolidated Income Statement
USD $ in millions
12 months ended
Feb 2, 2013
Jan 28, 2012
Jan 29, 2011
Jan 30, 2010
Credit card revenues
Cost of sales
Credit card expenses
Selling, general and administrative expenses
Depreciation and amortization
Gain on receivables held for sale
Earnings before interest expense and income taxes
Net interest expense
Earnings before income taxes
Provision for income taxes
(Target Corp Web).
Annual Financials for Wal-Mart Stores Inc.
Fiscal year is February-January. All values USD millions.
Cost of Goods Sold (COGS) incl. D&A
COGS excluding D&A
Depreciation & Amortization Expense
Amortization of Intangibles
Research & Development
Other Operating Expense
EBIT after Unusual Expense
Non Operating Income/Expense
Non-Operating Interest Income
Equity in Affiliates (Pretax)
Gross Interest Expense
Income Tax – Current Domestic
Income Tax – Current Foreign
Income Tax – Deferred Domestic
Income Tax – Deferred Foreign
Consolidated Net Income
(Market Watch Web).
The income for the two companies has been increasing for the last three years from 2010, 2011 and 2012. In Wal-Mart Company, the sales grew by 5.94% in 2010 to 2012 and later reduced to 5.70% in 2012 financial year. The sales for the Wal-Mart company rose from 2010 to 2011 financial years and slightly dropped in 2012 financial year.
The cost of goods sold for the Wal-Mart company increased by almost a double digit from the 2010 financial years to 2011 financial year but slightly reduced in 2012financial year. The net income for the Wal-Mart company increased by almost 2% in 2010 but reduced by almost 3% in 2011 which later increased by almost 5% in 2012. The gross profit margin for the Wal-Mart company rose from 3.26%, 4.38% and 7.31% in the financial years 2010, 2011, and 2012 respectively due to the increase in sales.
On the other hand, Target Group Company recorded a slight increase in its sales from 2010 to 2011 and further increased a bit more in 2012. The cost of sales for the Target Company also increased throughout the last three financial years and a very progressive increase in the net income from 2010, 2011, to 2012. The gross profit margin for the Target company also increased from the 2010, 2011, to 2012 respectively due to increase in sales.
Generally, cost of sales for the two companies increased little by little for the last three financial years 2010, 2011, and 2012. The net incomes for the two companies also increased progressively for the three financial years 2010, 2011, and 2012. The gross profit margin for the two companies increased gradually for the last three financial years.
Expenses= Gross margin – Net Income
In Target company, expenses are $18, 721, $18630 and $19267 million in 2010, 2011, and 2012 respectively. This showed a slight reduction in expenses from 2010 to 2011 and an increase by $637 million dollars from 2011to 2012.In Wall-mart company, the expenses increased from $88.31, $92.96, and $99.67 billion in 2010, 2011, and 2012 respectively.
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