Air France †KLM: Changing the Rules of the Game Essay

Introduction Air France-KLM Case (Som 2009) provides the background for airlines industry and factors impacting companies’ positions, details about the history of air-carrier alliances and their challenges. The main focus of the Case is on two companies: Air France and KLM and their decision to merge despite predictions of failure. The period covered by the case ends in 2006. As most aviation companies worldwide were struggling and losing profits, Air France-KLM was confidently gaining market shares, improving growth and financial performance. The purpose of this report is to identify and analyze the key challenges of the aviation industry and Air France-KLM merger; evaluate options and offer recommendation on how to achieve stronger position and withstand economical pitfalls (oil prices, political pressure, and competitor’s rivalry). Information presented in the Case will be analyzed using: PESTEL Analysis (Yà ¼ksel 2012), Porter’s Five Forces Analysis (Porter 2008), organi zational and financial performance, SWOT analysis (Bernroider 2002). Options and recommendations will be provided based on Hubbard’s (1996) recommendations. Macro-environmental/PESTEL Analysis Politic Sub-factors: Governments of most countries have a strong influence over air-carrier business. For example, Civil Aeronautics Board regulated airlines prices until 1977. Most of the companies were government owned or subsidized without regard to the profitability of the carrier. Countries’ air space was restricted for use by the national air-carriers and access by foreign carriers was restricted. Changes came with the trend of privatization of national carriers. Ratification of the Deregulation Act in  1978 by the US Congress had changed the airline industry market landscape. According to Spinetta (2006), the European market became a Single Market removing restriction to all carriers.   Economic factors: The airline industry is heavily dependent on the cost of fuel, number of travelers and economical factors such as unemployment and household disposable income. Introduction of alliances provided a solution to overcome these restrictions and regulations, widen access to the restricted markets and offer cost reduction to the member companies achieved through combined codes, reduced number of flights, simplified transfers and ticketing, reduced fixed costs. Offering combined frequent flyer programs attract more passengers. Reduction of service centers and reducing employment is a very unpopular measure in Europe and difficult due to the union’s activities. Social-cultural factors: Improvement of lifestyle, growth of tourism, additional free household income and simplified travel within European Union affect the airline industry. Traditionally, each European country has its own airline even though some of them are heavily subsidized by the government and not profitable. Since 1997 global alliances became standard practice for the industry, but not the mergers similar to Air France-KLM. ï‚ · Technological factors: The aviation industry is highly dependent on technological improvements. Development of fuel efficient aircrafts improves fuel consumption and reduces fixed costs. Expending the aircraft capacity improves performance of airlines core business of the number of passengers and cargo, thus increasing revenue and cash flow. Environmental factors: Public health, food and health and regulations, traffic safety, sustainable way of doing business are important factors impacting airlines strategies. Legal factors: There are many factors affecting the airlines, for example access to the American market was closed until 1978 when the Deregulation Act was approved by Congress. European Union countries share the laws and regulations. Summary of Findings: PESTEL analysis allows evaluating the environment in which the company operates and the industry landscape projection on the future. Yà ¼ksel (2012) discusses use of weighted measures of each PESTEL factor which improves accuracy of the results and it is recommended to use for more detailed analysis. Buyer Power: Frequent flyers programs decrease buyer’s power. Ups and downs of the economy influence household income available for leisure travel. Low-cost companies regulate the cost. Supplier Power: Boeing and Airbus are the two main companies that supply global aviation companies. The fleet is usually renewed once a decade and every aircraft is very expensive. In 2006 Air France-KLM had 565 aircrafts in operation with 225 destinations. New Entrants: The barrier for new entrants is high due to high competition, government regulations, high fixed and start-up costs; complicated exit strategy due to unionized work force. Substitutes: A number of large and discounted airlines are available for passengers to choose. Other transport options are available; however, airlines provide the fastest way of long and medium distance travel. They are usually substituted by the alternatives for short distances. Cargo services, warehouses, training and maintenance programs are also core businesses for airlines in addition to carrying passengers. Industry Rivalry: in 2007, 249 airlines were registered globally, with 100 airlines spread between 30 European countries. This creates a high rivalry between the airlines. Analysis Summary: Aviation industry is highly regulated with strong and increasing buyer power. The barrier for new entrants is high. The supplier power is strong but weakening as AirFrance-KLM benefit from the economy of scale and strong bargaining power. The company protects oil prices by purchasing cost fixing insurance. There are substitutes available but air travel remains the preferred option for business travelers and fast cargo delivery. SWOT Analysis STRENGTH ï‚ · Both CEOs share company and industry future  vision and offensive strategy. (De Wit & Meyer  2010, p. 397-400) ï‚ · Use of non-discriminating policies and promotion  of stronger branding. Synergy in IT systems. ï‚ · Guarantees given to the stakeholders. Strong  financial position. OPPORTUNITIES WEAKNESS ï‚ · Geographical distance between Paris and  Amsterdam hubs is 400 km ï‚ · Different cultural backgrounds (De Wit &  Meyer 2010, p. 415-419) ï‚ · High fixed costs ï‚ · Union actions and political interference play  a significant role in the industry. THREATS ï‚ · Alliance attracted such companies as Aeroflot ï‚ · Dependency on fuel cost and economical  which opens huge Russian market.  fluctuation. ï‚ · More companies may be acquired or enter the ï‚ · European countries do not increase the  partnership with the merged Air France-KLM.  runway capacity. ï‚ · Improved routs offering achieved by reduction of ï‚ · Possible threat of integration between redundant flights. Expenditure of network.  Northwest and Delta which may create a  high rivalry in North America. ï‚ · Economy of scale in bargaining with the suppliers Recommendations The recommendations would be to continue investment in the latest technologies, including IT; renew the fleet to reduce fuel consumption and improve defect-free customers experience; secure locked fuel prices, build partnerships to extend long distance flights options; balance the network offerings between the continents; focus on stakeholder’s, employee’s and customer’s needs; consider strategic partnerships with other airlines; continue increasing market share and improvement of free cash flow and strengthening of financial position. References Bernroider E. 2002, ‘Factors in SWOT Analysis Applied to Micro, Small-to-Medium, and Large Software Enterprises:: an Austrian Study’, European Management Journal, Volume 20, Issue 5, October 2002, Pages 562-573, viewed 16 March 2014, De Wit, B and Meyer, R 2010, Strategy Process, Content, Context An International Perspective, Cengage Learning, Andover, UK. Hubbard, G 1996, â€Å"Analysing a case’, in Cases in Strategic Management: Australia and New Zealand, G. Lewis, A. Morkel, G. Hubard, G. Stockport, and S.Davenport (eds), 2nd ed., pp viiixvi. Prentice Hall, Sydney. Porter M. 2008, ‘THE FIVE COMPETITIVE FORCES THAT SHAPE STRATEGY’, Harvard Business Review, 86, 1, pp. 78-93, Business Source Complete, EBSCOhost, viewed 16 March 2014, Som A. 2009, Air France-KLM : Changing the rules of the game. In: Strategy – Process, content, context – An International Perspective. Hampshire (United Kingdom): Cengage Learning EMEA, 2010, p. 823-836 Spinetta J 2006, Cross – Border Mergers & Acquisitions The AIR FRANCE KLM Story Speech by Jean-Cyril Spinetta at the Nyenrode European Business Forum on 23 February 2006, viewed 17 March 2014, Yà ¼ksel I. 2012, Developing a multi-criteria decision making model for PESTEL analysis. International Journal of Business and Management, 7(24), 52-66, viewed 16 March 2014, . BUSM3922 Case Study: Air France – KLM: Changing the Rules of the Game

History of Las Vegas, Nevada Essay

Las Vegas, translated from Spanish as â€Å"the meadows† was discovered and thus established in 1829 by the Mexican merchant Antonio Armijo, who led a trade caravan of 60 men creating a trade route to Los Angeles. Ironically, what historically was established as a mere transition point on a route, became one of the most remarkable places in the United States, â€Å"a pearl in a desert. † Practically, the rapid growth of Las Vegas as both a tourist destination and a community is directly related to the development of the image of Las Vegas. Even though Nevada was the last state to outlaw gambling in 1909 and the first state subsequently to legalize gambling in 1931, Las Vegas city fathers were more concerned with the divorce laws than reinstating gambling, and throughout most of the 1930s, gambling remained a sideline for Las Vegas. But the eighth wonder of the world, as Boulder Dam was then billed, â€Å"began to funnel a torrent of tourists† to the Las Vegas Valley (Boorstin, 1987:3). Las Vegas leaders envisioned their town as a Nevada Palm Springs. Alan Hess, in his book Viva Las Vegas, observes, â€Å"They began to promote their characteristic western identity, the desert scenery, a social mix of laissez-faire government and neighborly hospitality embodied in speedy divorces and easy gambling† (Hess, 1993:19). In 1932, a year after the legalization of gambling, the then-luxurious, three-story Hotel Apache opened in downtown Las Vegas. With a motif of Native American design and an elevator to the supper club on top, the Apache was the most modern for its day. By 1936, the dam was completed and Las Vegas, with no more big payroll checks from dam workers, was beginning an economic slump. But, between 1938 and 1942 several changes occurred to avert the slump. In 1938, Los Angeles Mayor Fletcher Brown had begun enforcing the no gambling laws in California and many California gamblers moved to Las Vegas. Guy McAfee, a police captain and commander of the vice squad, was one of these California gamblers who moved into Las Vegas where he purchased the Pair-O-Dice Club in 1939. McAfee is credited with naming that part of the Los Angeles Highway which came into Las Vegas as â€Å"The Strip† in fond memory of the Sunset Strip in Los Angeles. It would be several years before ‘The Strip† would gain its present day fame. Federal intervention also assisted the Las Vegas economy when President Roosevelt’s administration ordered air bases throughout the country. In 1940 Las Vegas received an air training station on the outskirts of town, and in 1941, Basic Magnesium, Inc. (BMI) was built, which created the city of Henderson. † Las Vegas found itself with two new industries-recreation provided by the dam and lake, and defense, provided by the training station and BMI. The recreation (tourism) and defense industries would shape many western cities throughout the rest of the century. Fremont Street, Las Vegas’s main thoroughfare, boomed. As Don Knepp said in Las Vegas Entertainment Capital, â€Å"There also emerged the image of Las Vegas as the glamorous hub for vacations in the Southwest† (Knepp, 1987:31). The city leaders had begun promoting Las Vegas as a tourist Mecca, and the WPA Guide to Nevada, the Silver State, 1940, seemed to approve of the methods when it said of Las Vegas, â€Å"No cheap and easily parodied slogans have been adopted to publicize the city, no attempt has been made to introduce pseudo-romantic architectural themes, or to give artificial glamour and gaiety† (Hess, 1993:20). 941 saw further growth for the Strip and downtown. The El Rancho opened with a dude ranch theme and atmosphere. Built by Californian Thomas E. Hull, the El Rancho established a pattern of roadside landmarks, vistas and signs that broke with the tradition of downtown Las Vegas hotels and realized a vision that would mold the city’s current form. The El Rancho duplicated the easy accessibility of the roadside motel, but with much more grandeur. While the downtown Hotel Apache was fancy, the El Rancho was lavish. Downtown, the El Cortez opened. Built by Californians Marion Hicks and John Grayson and although multistory, as most downtown hotels were, the El Cortez also kept to the western or Spanish theme. After stopping at the El Rancho, William J. Moore and R. E. Griffith, realizing the potential of thousands of gambling customers from the gunnery school, built the Last Frontier. Opening in October 1942, the Last Frontier also western in theme, was larger and more opulent than the El Rancho. McAfee, not satisfied with owning just the Pair-O-Dice Club, tried to upstage the El Rancho by building the Pioneer Club at Fremont and First Streets. Also consciously western in style, the Pioneer Club opened in 1942. Even though western in design, as late as 1947 Las Vegans were amazed that something so lavish as the El Rancho could succeed so far from downtown. The success of the El Rancho, the Pioneer Club and the Last Frontier was impressive enough that the city boosters considered making the western theme mandatory for Fremont Street. Although many downtown casino owners followed suit, the idea was never formally adopted. As Las Vegas became more savvy about the potential of a tourist economy, it began to exploit its western heritage more consciously. In keeping with the western motif, dude ranches replaced motels to provide divorce seekers a place to stay until their six weeks residency requirements were met The western influence provided a successful venue for divorce interests and gambling, two of the leading economic factors for Las Vegas. Close behind McAfee was Bugsy Siegel, who began by taking over the Las Vegas race betting wires, and, as a representative of Al Capone, â€Å"muscled out the Continental Press Service and gained part ownership of several Fremont Street Clubs including the Pioneer Club. Although there was already an obscure element of â€Å"gangsters† in Las Vegas, Siegel was publicly known for his ties to organized crime. Siegel brought with him the negative aspect of the influence of organized crime, but he also brought the positive aspect of establishing a landmark luxury resort with the building of his Flamingo which broke with the western theme. The half-finished Flamingo officially opened with Jimmy Durante as entertainment in 1946; finances forced closure of the resort four weeks later, but the Flamingo reopened in 1948. Knepp credits Siegel with bringing extensive national exposure to Las Vegas; the notoriety attached to â€Å"the Fabulous Flamingo† branded Las Vegas as an underworld haven, a reputation that has persisted (Knepp, 1987:32). World War II created a shortage of construction materials which also created most of the financial difficulties Siegel experienced while building the Flamingo. But the federal government, including the war and defense spending, contributed greatly to Nevada, especially Las Vegas. Eugene P.  Moehring states in his book, Resort City in the Sunbelt, that â€Å"Defense spending was an obvious by-product of the worldwide conflict. But, like the dam earlier, World War II strengthened the town’s recreational economy† (Moehring, 1995:40). The war also brought some disadvantages such as curfews, which cut profits by closing casinos from 2 to 10 a. m. and meat rationing, which caused some restaurants to close. â€Å"Clearly, the national emergency cr eated many problems for Las Vegas† (Moehring, 1995:40). Yet, much the same as Hoover Dam before it, World War II represented a bonanza for the small town’s economy. The war helped confirm gambling as Las Vegas’s main postwar industry; â€Å"By partially depriving the city of tourists for almost four years, the war magnified their [tourists] importance in the minds of promoters† (Moehring, 1995:40). The end of the World War II brought an end to the shortages of construction materials which had plagued Siegel and the 1950s brought the largest growth expansion in American history. This expansion occurred in the western United States, led by the state of Nevada. As 1950 opened, Nevada contained approximately 160,000 residents: by 1955, the population was about 245,000, a rise of more than 53 percent (Glass, 1981:39). By the end of the 1950s, Nevada’s population had increased 75 percent, to 285,000 residents, making it the fastest-growing state in the country. During this expansion, Nevada’s economy flourished thanks to mining, to the Freeport Law and to the test site in Las Vegas. But, it was gambling that brought about the unprecedented growth. By 1955, mining still outstripped gambling by just under $100,000, but as Jane Glass, in her book Nevada’s Turbulent 50% asked, â€Å"Who noticed? Well, of course the people who were working the mines noticed and the tax collectors who pulled in the highest amount on record but, â€Å"almost nobody else† (Glass, 1981:92) which seems to imply that Nevada, especially Las Vegas, had forgotten the rich economy of mining, preferring instead to credit gambling as the biggest bo on the state’s economy. The Freeport Law was the legacy of Edwin Bender, an administrator for a federal agency in charge of storing strategic war material, when he discovered a shortage of space in which to store the items. By the end of the 1940s, Bender found himself with a surplus of space and a shortage of goods. Later, when the county tax assessor evaluated some of the items for tax purposes, Bender felt the taxation to be unfair. He wrote a proposal for what became the Freeport bill and with the help of Nevada Attorney General Alan Bible, who drew up the bill. Owners of warehouses and light manufacturing firms found Nevada’s tax climate substantially to their liking and, the Freeport Law became a significant economic advantage. After twenty-five years, three-quarters of a billion dollars worth of goods were being shipped yearly by truck and rail from the warehouses in the state (Glass, 1981:44). Although initially slow to move, the Las Vegas Chamber of Commerce became deeply involved in designing and planning for tourists as early as 1944. The Las Vegas Chamber of Commerce and its boosters, fearing for the postwar economy sponsored a fund raiser to raise $75,000 as a budget for promoting the city as a tourist destination. During the war, the two largest industries had been the Army Air Base and Basic Magnesium, Inc. Surveys and research led the Chamber to the conclusion that tourism was now the best means to a good economy and the Chamber set out to attract visitors. Before long however, Las Vegas found it had to deal with the underworld image that had grown up thanks to â€Å"Bugsy† Siegel and others. The Chamber of Commerce tried several different public relations firms and advertising firms to draw attention away from the negative publicity of gangsters as well as the wild city image previously promoted. When these firms failed to promote the city in what Las Vegans and the Chamber felt was a positive way, the Chamber hired the West Marquis Agency to handle promotion. The West Marquis Agency was subsequently replaced when the Chamber felt it too had failed. It appears the Chamber need not have worried. Surveys now have shown that during the time of heavy gangster influence, tourists came to Las Vegas in the hopes of actually seeing a gangster. Knepp supports this view, â€Å"For most visitors in the 1940s, however, the reputed underworld ties seemed only to highlight the city’s wide open appeal. † (Knepp, 1987:32). Nevertheless, by the 1950s, promoting Las Vegas and creating the acceptable image had become a concerted effort of the Las Vegas Chamber of Commerce, the city and the casinos who hired their own communication specialists. Contemporary Las Vegas is a place famous for extremely high concentration of world largest and what is more important, famous, casinos, among which are Stratosphere Hotel and Tower, the Las Vegas Hilton, the Rio Suites, the Gold Coast, the Maxim, the San Reno, the Continental, the new Paris and the smaller Hard Rock, Luxor, and the Circus Circus. Las Vegas Valley and its dominant industry generate a great many statistics, some misleading, others conflicting. In 1995-96, gamblers left behind $3. billion at the machines, tables, and sports books of the Strip compared to $683 million Downtown, a fact that gives some idea of the relative importance of the two in the industry that created and still runs Las Vegas (Littlejohn and Gran, 1999:2-3). Las Vegas has more hotel rooms than any other city in the world (more than a hundred thousand in 1998, with twenty thousand more either planned or under construction), and the highest average hotel-occupancy rate (87 to go percent) of any American city. In 1995, the Zagat Guide estimated that it offered the lowest average daily hotel room rate of the thirty-three leading U. S. visitor destinations. Moreover, Las Vegas currently contains nine of the world’s ten largest hotels. Las Vegas claims to be the number-one tourist destination in the U. S. , with more than 30 million visitors a year. Nevada had in 1996 both the highest marriage rate (ten times the national average, due primarily to out-of-state couples who come to Las Vegas and Reno to marry) and the highest divorce rate (more than double the national average). According to the FBI’s Uniform Crime Reports for 1995, Las Vegas had the highest total crime rate and the highest rate of crimes against property among all American cities with more than 250,000 people (Littlejohn and Gran, 1999:5). Police reports for that year placed Las Vegas fourth among U. S. metropolitan areas of over a million population – after Miami, Phoenix, and Oklahoma City – in the rate of all serious crimes; 14. 7 percent of these were called â€Å"violent. †

Application of Auditing Theory and Practice

Auditing is part of organizational management, it is explained as the process of examining the financial reports of a business enterprise as presented in the business annual reports, an independent person or an organization performs the audit process. The progression and development of organizational performance is accomplished by conducting audit and understanding the auditing theory and related practices  (Arens, et al., 2012). Auditing is also outlined as the systemic and unbiased examination of organizations books of accounts, statutory information, documents and vouchers of an organization to visualize how some distance the economic statements further to non-economic disclosures present genuine and fair view of the business enterprise  (Eilifsen, et al., 2013). Auditing and compliance practices try ensure that the organizational financial books are effectively maintained as required by the international auditing standard board, and if they are maintained under the regulation provided by the existing laws. Auditing independence is outlined as the independence of the external and internal auditor from other parties and individuals who may have economic and financial interest in the business enterprise that is being audited. According to Arens, Elder, & Mark 2012, the auditors indepence requires integrity and essential audit measure to the auditing procedures. The study reveals that, some factors may affect the integrity and auditing measures and process of an auditor  (Arens, et al., 2012). On the other hand, the auditors integrity is also affected by the business risk, these risk influence the decisional making process of auditors and top organizational management. However, auditing practices compel the auditor to put into actions and measures which might be crucial even as performing the practices. Auditing planning is the strategic management degree for auditing, it carried out at the beginning of the audit process this is to make sure that the correct attention is fermented to important areas, to sure that the capacity issues are promptly identified and viable solutions are generated to lessen the impact  (Elder, et al., 2011). The main purpose of encouraging the audit planning is to ensure that all the audit work are fully finished and coordinated. Clarke & Johnson (CJI) is an audit company this is identified for proving the first-rate services in the audit business enterprise; Luxury Travel Holidays LTD (LTH) is commercial enterprise that provides travel service. Both corporations have taken into consideration the importance of market segmentation and diversifying their enterprise operation far from their nearby market. Clarke & Johnson (CJI) Company is re-engaged by Luxury Travel Holidays LTD (LTH) to offer audit services before submitting their 30 June 2015 financial report to the stakeholders. The factors affecting the integrity and auditing approach used by the auditors could affect decision-making process  (Gay & Simnett, 2000). Qualified and non-qualified audit opinion is the relevant concepts that are used to draft the audit report. This is a primary factor affecting the independence and the decisions to be reached by an auditor.   The size if the audit firm implies the size of the business enterprise to be audited and the particular auditing firm. According to this case study, Clarke & Johnson (CJI) Company is an audit firm that has been providing audit services to small market the company is also to provide its services to Luxury Travel Holidays LTD (LTH) that performs its business activities in Asia, Europe and U.S market. The larger the audit firm the lesser the impact of impairments, the smaller the audit company there will be more factors that will affect the independence of the audit company  (Eilifsen, et al., 2001). This is amongst the dangerous threats which might the independence of the audit company. The advising threat implies that, some stakeholders may have the economic and financial interest in the company to be audited. According to the case study, Clarke & Johnson (CJI) Company and Luxury Travel Holidays LTD (LTH) have been collaborating for years this could build some interest between themselves  (Jackson, 2016). Therefore, the auditor is compelled to present audit opinion that favors the stakeholder who has economic and commercial interest. The threats regarding the referrals from the customer impacts the independence of an auditor. Clarke & Johnson (CJI) Company is an audit firm that has been offering audit services to Luxury Travel Holidays LTD (LTH); Luxury Travel Holidays LTD (LTH) may make many referrals to the auditor, and thus affecting the audit process and of the Clarke & Johnson (CJI) Company. The organizational control has an excessive impact on the audit opinion to be made with the aid of the usage of the auditor, the organizational pinnacle ought to affect this critiques in view that they may pressure the auditor to utilize the referrals made. Luxury Travel Holidays LTD (LTH) and Clarke & Johnson (CJI) Company had been participating for more than one years. Luxury Travel Holidays LTD (LTH) may want to refer the accounting department to make adjustments to company book of accounts, those changes and adjustment made are ought to affect the findings of the auditor and thus the audit independence is automatically affected. The success of every operating business organization is determined by the extent and how the company is involved in the audit practices. The independence of the auditors should not be influence since they impose some negative effects to the findings that are used as the basis of the audit opinion which is the primary element of audit report. The size of the firm is categories to be the threat that affects the auditor independence, the organizational management of Luxury Travel Holidays LTD (LTH) should consider the size of the firm that will perform the audit practices. Consequently, Clarke & Johnson (CJI) Company should ensure that they create and implement policies that will limit threats affecting their independence. Advising threats is a fatal component that influences the independence of an auditor. The relevant audit opinion to be utilized by an auditor ought to be based totally on the instantaneous findings. The auditors are advocated not to provide any economic or financial cautioned to their clients because their findings after the recommendation will have an impact on the audit opinion  (Knechel & Salterio, 2016). Multiple referrals could also affect the auditor's opinion. According to the case study both business enterprises have been in business for a number of years, Luxury Travel Holidays LTD (LTH) could make referrals to the finance department to make the adjustment to some vouchers and documents, this is to present the interest of some management individuals. Clients are advised not to make any referrals to any departments, the exact finding of the auditor portrays that the organization needs to implement on some applicable measures. According to Gay, & Simnett, 2000, audit planning is strategic control measure for auditing, it conducted at the beginning of the audit procedure this is to make sure that the right interest is fermented to essential organizational areas. This is to ascertain that the potential problems are promptly recognized and viable solution are generated to reduce their impact, to make sure that all auditing work is completed and coordinated. While developing and creating the audit practices, there are some elements that may affect the auditing procedures  (Lyon & Maher, 2005). Clarke & Johnson Company and Luxury Travel Holidays LTD (LTH) are now taken into consideration to function in new markets. New markets are bounded and guided by means of commercial laws and regulations which are surpassed through the federal governments  (Knechel & Salterio, 2016). Consequently, the organizations that operate outside their nearby market are affected by the legal processes that are used to regulate the business enterprises when it comes to their commercial activities. U.S Common Laws are the examples of the commercial law that are used to guide organization business activities U.S and European market  (Johnstone, 2000). Economic threat is the primary external environmental factor that impacts the operations business corporation in international markets. They incorporate elements such as GDP and unique country financial improvement quotes. Some markets are affected by down-tuning economic developments, currencies also affect the activities of a business organization. For instance, U.S currency is a globally accepted currency, it is used in the international market for the exchange of goods and services  (Sadgrove, 2016). According to Jackson 2016, the declining in product demand is a marketing factor originating aftermarket segmentation and diversification. Operating in an expanded marketplace place create a room for more corporations to create products and services which resemble the ones produced by using the existing organizations  (Jackson, 2016). Companies operating in the broader market are advocated to ensure that they produce quality products and services that meet the competitive market they operate in. According to Johnstone 2000, financial dangers chance contains those monetary aspects that stand up because of lack of monetary management procedures and measures. The economic worldwide marketplace has experienced many issues that have affected the operation of commercial enterprise companies, mainly Crampton and Hasaad and Mining Supplies LTD (MSL) corporations  (Johnstone, 2000). The research conducted by Knechel 2007 concluded that the financial contributes to the economic failures of a company that operates internationally  (Knechel & Salterio, 2016). Inherent audit risk is the risk that involves the material misstatement in the financial statement of an institution arising due to errors and omission (Kachelmeier, et al., 2014)made as a result of failing to implement on specific controls and measures. The impact of inherent audit to a business organization are felt when the companies operating in specific market fails to implement on the existing financial measures and controls  (Ricchiute, 2001). These risks are perceived to be generated when the business organization failed to make application estimation while making complex transactions. The control risk comprises the threats originating from the fabric misstatement existing within financial reporting of the company, this fabric misstatement is experience due to failure to work under the financial policies and measure of the organization  (Bell, et al., 2001). Crampto and Hasaad and Mining Supplies LTD (MSL) are advocated to have the applicable financial internal control measure, this measure is relevant in preventing and reducing frauds originating from the internal business transactions  (William Jr, et al., 2016). According to Bell, Landsman, & Shackelford 200, the detection risk is that risk that arises when the external auditor fails to come over the cloth misstatement in the financial information of the company, vouchers, assets and other relevant documents  (Bell, et al., 2001). While implementing the audit planning, the auditor is encouraged to focus on the relevant financial and documents of the company and provide the solution to the financial misstatement. The business organizations are advocated to make use of the audit measures that will reduce the fabric misstatements in the financial statements and asset documents of an enterprise that ought to be audited. Eilifsen, Knechel, & Wallage 2001, concluded that, while mitigating the dectecion risks, the audit company is recommended to increase and take the variety of sample transactions  (Eilifsen, et al., 2001). In conclusion, auditing is explained as part of the managing a business organization, it is the independent examination of the company financial reports, this is to assure that the financial information of the business organization shows true and fair view of the company. The audit opinion is a relevant element of audit report as presented by the external auditor. Some aspects affect the independence of an external auditor, these aspects comprise multiple referrals, size of the firm and advising threat. Business risk is defined as the primary factors that affect the business organization, especially those which are operating in the international market. Legal risk, financial risks, economic risks and declining in the product demand are the examples of the business risk addressed in the paper. Inherent risk, detection risk, and control risk are the examples of audit risk affecting the auditor practices. Arens, A. A., Elder, R. J. & Mark, B., 2012. Auditing and assurance services: an integrated approach:. Boston: Prentice Hall.. Bell, T. B., Landsman, W. R. & Shackelford, D. A., 2001. Auditors' perceived business risk and audit fees: Analysis and evidence.. Journal of Accounting research,, 39(1), pp. 35-43. Eilifsen, A., Messier, W. F., Glover, S. M. & Praw, 2013. Auditing and assurance services.. s.l.:McGraw-Hill.. Eilifsen, A., Knechel, W. R. & Wallage, P., 2001. Application of the business risk audit model: A field study. Accounting Horizons. s.l.:s.n. Elder, R. J., Beasley, M. S. & Arens, A., 2011. Auditing and Assurance services. s.l.:Pearson Higher Ed.. Gay, G. E. & Simnett, R., 2000. Auditing and assurance services in Australia.. Sydney: Mcgraw-hill. Jackson, R. A., 2016. Business at risk: keynote speakers for this year's IIA International Conference identify emerging risks facing organizations. Internal Auditor,. In: s.l.:s.n., pp. 40-46. Johnstone, K., 2000. Client-acceptance decisions: Simultaneous effects of client business risk, audit risk, auditor business risk, and risk adaptation. Auditing:. A Journal of Practice & Theory, 19(1), pp. 1-25.. Kachelmeier, S. J., Majors, T. & Williamson, M. G., 2014. Does Intent Modify Risk-Based Auditing?. The Accounting Review. s.l.:s.n. Knechel, W., 2007. The business risk audit: Origins, obstacles and opportunities.. In: s.l.:s.n., pp. 383-408. Knechel, W. R. & Salterio, S. E., 2016. Auditing: assurance and risk. s.l.:Routledge. Lyon, J. D. & Maher, M. W., 2005. The importance of business risk in setting audit fees: Evidence from cases of client misconduct.. Journal of Accounting Research, 43(1), pp. 133-151. Messier, w. f., 2014. An approach to learning risk-based auditing.. Journal of Accounting Education, 32(3), pp. 276-287. Ricchiute, D. N., 2001. Auditing and assurance services.. s.l.:South Western Educational Publishing.. Sadgrove, K., 2016. The complete guide to business risk management.. s.l.:Routledge. William Jr, M., Glover, S. & Prawitt, D., 2016. Auditing and assurance services: A systematic approach.. s.l.:McGraw-Hill Education.

New Terrorism Essay Example | Topics and Well Written Essays - 2000 words

New Terrorism - Essay Example This led to several groups who were a part of this era were specifically opposed to the government and political systems and focused on committing assassinations of those who were in power to overthrown the current system and to re-establish a different system. The rise of terrorism from the 1900s created the understanding of traditional terrorism, which was based on weapons such as guns that were used for assassinations. The motivations and strategies were always based on killing the leaders in power as well as the ability to overthrow specific powers. Most would separate themselves from society by different ethnic groups and through religious beliefs (Laqueur, 24: 1996). During the 1980s, the intensity of terrorism increased. The Cold War and the associations with international conflicts for the first time became the main conflict that was associated with terrorism. The main focus during this time was with state based terrorist groups who were taking part in guerrilla warfare, asso ciations with Civil Wars and which were creating specific statements against the government. During this time, there was a rise in small groups of terrorists that were interested in spreading a specific message across the state that opposed the government and system that was in conflict. The main initiative of these terrorist groups was based on finding ways to cause a level of destruction to the national governments while creating domestic problems in different regions. While some of these were based on domestic attacks to get international countries out of the country, the main objective was to work on attacking the current system and political affiliations that were in the country (Laqueuer, 25: 2006). The types of terrorism began to change after the... Even though there are several groups that use specific tactics that are upgraded and which have a specific mission, there are also similarities between the traditional and new groups. The first is based on the individualistic ideologies that are a part of terrorism. There is a known psychology which is related to terrorist groups which are based on specific personality disorders. Opposing groups to the government will act in a similar manner, despite the traditional or modern concepts used. In the traditional forms, this irrationality moved into attacking political leaders and creating assassinations, usually which was followed by delivering a message that the system needed to change. Today, the same commitment to delivering this message and to the irrationality of killing civilians to get a message across is the main agenda. The concept has led terrorist campaigns to be linked to the same irrationality and fanaticism throughout history and has altered the way in which all groups act in response to given situations. The concept of commitment to a message is one which is also driven by the concepts of how one begins to believe in the specific message and mission to be delivered as well as the fanaticism which is used to carry this out. In modern terrorism, most groups are religiously based and pride themselves on delivering a message from a sacred script which is ignored by political leaders and which is causing the destruction of specific systems.

Case discssion Essay Example | Topics and Well Written Essays - 1500 words

Case discssion - Essay Example By taking into concern the above discussed aspects, the statement "Begum and Playfoot show that the law is based on fair procedures and tests that respects human rights and justly determine the way in which people of different (and no) faith interrelate with each other in school environments† would be discussed. It would be vital to mention that R (Begum) v Headteacher and Governors of Denbigh High School and R (Playfoot) v Millais School Governing Body are two separate cases relating to equality and human right that would be analysed for discussing the above statement. The case of Begum can be apparently observed to examine the phenomenon of expressing religious belief through the selection of specific dresses or outfits. In this similar concern, Begum desired to wear a conservatively styled garment, referred as ‘jilbab’ in the school, which was however disapproved by the school management. Shabina Begum was a student at Denbigh High School in a secondary school in her comunity. The school provided shalwar kameeze specifically for the Muslim girls as school uniform. The disapproval of the school in wearing ‘jilbab’ and its refusal to permit Ms. Begum for attending school unless she wore the proper school uniform, eventually became a ground to bring the lawsuit against the school authority. According to Ms. Begum, she was forced to sue the school arguing that her liberty towards manifesting her ‘religion or belief’ and right to education, as was assured under the European Convention on Human Rights and Fundame ntal Freedoms 1950 (ECHR) and the Human Rights Act 1998 (HRA), were infringed (Butcher, 2011). Notably, the right of an individual towards their conscience, thought and religion is fundamentally assured by Article 9 of the ECHR. This also encompasses the liberty of manifesting one specific

Leadership and Change in Construction Industry Coursework

Leadership and Change in Construction Industry - Coursework Example Some of these challenges are sector-specific. In the housebuilding sector, there is a shortage of housing, and this is unlikely to ease in the short term, unless planning regulations are relaxed and a substantial affordable-housing programme makes an impact: high house prices exclude many prospective first-time buyers from the housing market. The infrastructure subsectors have experienced a decline in work, much of which is due to delayed programmes in, for example, transport. The industrial construction sector has experienced a growth in warehouse construction work, but the factory sector is likely to remain subdued as the UK loses manufacturing jobs to cheaper manufacturing centres overseas. Commercial construction work benefits from major Private Finance Initiative (PFI) programmes in education and health, although some of these have been delayed. Output from office construction is particularly important in the commercial sector, while work in the retail subsector faces increasing planning restrictions. In the building materials subsector, there are challenges relating to rising energy costs and environmental issues, such as sustainable material sources, disposal of waste and recycling. New materials are being investigated to accommodate improved environmental features; for example, reducing heat loss and simplifying construction methods (UK Construction Industry Market Review, 2006). These major developments in the UK's construction industry highlight importance of the human resource issues to be faced by the managers within this sector of economy. Attracting skilled labour and career oriented employees (especially considering the growing share of part-time and causal job in the sector), retaining such employees in order to build bench strength required for succession planning, providing advanced training are only the most evident tasks to be fulfilled by the companies within the construction industry in the long-term perspective. Therefore, strong and effective leadership is a critical aspect of human resources related activities required to manage the recent challenges. Leadership in the modern highly dynamic and turbulent marketplace is not restricted to simply getting the employees to do what the leader wants and requires them to do. The key task of a modern leader in the construction industry is to bring out the very best of the employees' potential and help them focus their energies to reach a common set of goals. Therefore, some authors believe

H.J.Heinz Marketing Strategy Case Study Example | Topics and Well Written Essays - 2500 words

H.J.Heinz Marketing Strategy - Case Study Example The paper shall examine these with specific reference to the initiatives launched by the company and recommendations will be given about the issues that can be changed within the company. Heinz has established a name for themselves in the food industry through their pricing strategies. Usually, the company studies markets in its respective environs and then looks for a way in which it can stay ahead of that competition. Their prices are normally sufficient enough to attract clientele, while at the same time maintaining a level of profitability and competition within its respective regions. Numerous marketers acknowledge the fact that when sufficient value has been added onto a product, then its pricing becomes a secondary factor in convincing clients to purchase the item. For instance Heinz ketchups contain additional ingredients such as garlic and other flavours that can be used to enhance its overall taste and hence its value. This is the reason why consumers became loyal to the brand. In addition to the latter, pricing is also largely determined by the strength of the brand. For instance, when one considers some of the goods offered by the company, it can be seen that some of them may be much higher than what their competitors sell them for. However, because of the strong brand name, some people who are loyal to the Heinz brand may be willing to pay a little extra for the commodity as long as it comes from the H. J. Heinz food company. (Grant, 2005) Heinz pricing strategies are also largely affected by their geographical proximities. For instance, the largest pickle manufacturing Heinz factory is located in its headquarters within the United States. Consequently, some countries that may be in need of this product but are far from the United States will have to include the additional costs that come along with shipment and the like. Heinz usually incorporates a lot of in-store discounting in its product offering. Most of the time, this is done through a range of grocery stores or it also deals with a series of hyper stores too. The company realises that in order to boost their sales at the last point of contact with the consumer, there is a need for one to establish a mechanism that will encourage this kind of initiative. (Balakrishnana & Coyne, 1995) Perhaps the most important aspect in Heinz's marketing strategy is the strength of its products. First of all, Heinz is largely known for its "fifty-seven-varieties" advertisement and logos. The company has invested thoroughly in offering a range of food items such as pickles, sour onions, tomato sauce and many other varieties. The number fifty seven does not signify the exact number of products available under the Heinz name because these products are much more than this. However, the number is meant to indicate just how diverse the company's product offerings are and also, to capture consumer's attention. (Mc Gahan, 2004) The major strategy behind Heinz's product strategy over the past three years has been to streamline their product offering. The company realized that in order to offer better quality products, it would be more helpful for them if they categorised their items. This was the reason why the company decided to offer all their products under three major brands that included; Sauces Ketchups Baby food Convenience meals The company was determined to grow this category by buying out other companies that had specialised in some of their weak categories such as the