Freudian Analysis of “Beauty and the Beast” Essay

           In â€Å"Beauty and the Beast†, Beauty, the dreamer, successfully travels through the phallic stage and the Oedipus complex into the latency and genital stages. She is at first attached to her father, and wants to protect him. She mentions that she is willing to even die for him so that he can live a happy life. Beauty eventually realizes that she is actually in love with the beast (Brett, n.p).             Beauty starts out in the phallic stage of development. She is starting to recognize the difference between male and female, however, she still views males as beastly, and chose her father over them. When the beast comes into the story, Beauty offers to sacrifice her life for her father. This shows the Oedipus complex of Beauty. She still is competing with other people for her dad. Beauty’s father depicts phallic symbolism of a man through the efforts that he undertakes to especially by portraying that he is a self-made man, that is wealthy and makes use of common sense (Brett, n.p). Beauty’s father is portrayed as a self-made, wealthy man with common sense. Despite his bad luck and loss of his wealth, he still manages to bring up his six children and provide them with quite a comfortable life, talking the role of the man of the house and ensuring that his family is provided for despite all the circumstances.             Beauty stays in the Oedipus complex when she is brought into the castle. She still views other males as gross (the beast) and puts her father first. When the beast asks to marry her, she quickly rejects him. However, the Beast continues to see her regularly, day after day (Brett, n.p). The beast offers for Beauty to see her father, except that he would die if this happened. This is when Beauty starts entering the latency stage.            When Beauty visits her father and her sisters, she starts to realize how much she is longing to see the Beast. She starts to get annoyed by her sisters, who are jealous of how beautiful she is. However, she spends most of her time with the same sex, a sure sign of the latency stage. Beauty is seen to be very close to her father in a way and has what is referred to as an â€Å"electra complex† which is an â€Å"oedipal complex†, a female version (Brett, n.p). She sees her father as one that never does anything wrong and is always a good person. There is no fight between her and her mother over her dad hence she becomes quite closer to him although she undergoes a very quick transition (Brett, n.p).          When Beauty sees Beast at the end of the story, she is scared that the Beast will kill himself since she did not keep her promise. The Beast is upset about this, but still says how happy he is to see her and that he will die satisfied. This is where the genital stage begins. Beauty explains her love for him and that she cannot live without him. She is basically starting to go through puberty, a sure sign of the genital stage (Brett, n.p).          As Beauty passes through the stages in her life, she has the desire to read but also has more desires that she wants to satisfy and is not sure of the place or the person to find it from but this change when she starts developing interest and liking for the Beast. On the other hand, the Beast is seen as unconsciously searching for some form of help as well as someone that can be able to love him for who he is. As the picture and symbol of morality, Beauty finally develops a super-ego that is great (Brett, n.p).             Beauty passes through all of the stages of psychosexual development without much of a problem. She overcomes a little bit of trouble with the Oedipus complex, but seems to finally get to the genital stage when the story is over (Brett, n.p). The end of the story represents the rest of the genital stage where Beauty recognizes her love for the opposite sex. She has to renounce her affection and care for her father for a suitor that she would be spending the rest of her life with (Brett, n.p). In this part, the Beast, despite the nature of that he has, undergoes a lot of struggle in trying to contain and control the urges that he has just to have someone to love him. The refinement of the Beast in to something that is more human is not a mere facade, but it is part of who he really is and also forms part of the reason why he is able to succeed in controlling his lust (Brett, n.p).               The Beast is symbol of dual nature of the males whereby the outside portrays the rough and manipulative males while the inside is full of love and care, similar to Beauty’s father. He is strong on the outside and strict with his daughters although in the inside he is compassionate and loves them hence takes care of them despite losing his wealth (Brett, n.p). From the overall story, male presence is dominant and the Beauty has to make a choice between men that she is emotionally attached to in her life. Her father has been part of life for a long time but she then finds love and intimacy in the Beast, of which she wants to experience in her life as she also loves the Beast. Reference Brett, Jan. Beauty and the Beast. New York: Clarion Books, 1989. Print. N.p Source document

Global Marketing

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

John Grisham autobiography Essay Example | Topics and Well Written Essays - 1750 words

John Grisham autobiography - Essay Example In no way did I ever live a privileged life that would have exposed me to the beauty of writing novels. (Academy of Achievement â€Å"John Grisham†). Ever since I was a child, I would wake up at 6 or 6:30 a.m. , champing at the bit. Since my father had to wake up very early for work, my mother insisted that we all be awake along with him so that we could have breakfast together and get an early start to our day. For me, that meant heading out to the local baseball field and practicing a few hitters with the local kids. Just like any other child I fancied myself a fantastic baseball player and hoped to turn professional in the future, earning the big bucks along the way. But after my parents decided to settle down and lay down roots in Southaven, Mississippi in 1967 I came to realize that my aspirations of a pro baseball career were just that, dreams. I wasn't really athletic enough to see it become a reality. What I did concentrate on instead, thanks to the encouragement of my parents who did not get enough of a formal education, was my quest to earn a college diploma. (Famous Authors â€Å"John Grisham†) But just like any other person of college age, I wasn't exactly sure what I wanted to major in. It seemed like such a big responsibility had been placed upon my shoulders after high school and my parents could not help me find my way. So I drifted for 2 years as a college student. Drifting seemed to be the logical thing for me to do having been exposed to a drifter kind of life with my family while my parents decided where and when we would lay down roots. I was never worried that I would not finish college. I knew that I would find my major once I settled into college life. (Academy of Achievement â€Å"John Grisham†). After some time in college, I knew that i had to pick a major, any major. That was how I ended up becoming a double major in college. I first earned an accounting degree from the Mississippi State University. (Miller, Erin â€Å"John Grisham Biography†) Since already had the background in taxes and accounting, I thought of taking further studies while I still had the college bug in me. That was how I chose to major in one of the most boring fields of law. I decided to become a tax lawyer. But after some time, the drifter in me kicked in again, so I shifted my major to criminal law, then again to litigation. After 3 path changes in college, I finally earned my law degree from the University of Mississippi. After that bit of life adventure, I thought it best to go back home to Southaven and set up a small practice. (Academy of Achievement â€Å"John Grisham†) It's funny how life leads us down certain paths that we never imagined for ourselves as a part of our journey of self-discovery. Imagine if you will, the kind of private law practice that I had which would eventually lead me into a local political career. I must have done something impressive in the service of my community since they chose me to serve in the House of Representatives in 1983. Eventually I became the Vice Chairman of the Apportionment and Elections Committee. (Famous Authors â€Å"John Grisham†) They say that life gives us catalysts for change. But we need to be able to recognize these triggers when it enters our lives. I seriously doubt I would ever have written the first story had I not been a lawyer. I never dreamed of being a writer. However, after I'd been a lawyer for about five or six years, I started

Introduce a Company into Spain Essay Example | Topics and Well Written Essays - 1000 words

Introduce a Company into Spain - Essay Example Figure 1: Predicted Mall Distribution Space in Spain The product will be distributed through a long distribution channel whereby several middlemen will link the retailer with producers of different commodities. Although this kind of distribution channel may raise the price that the consumers will pay for the products, it will be essential to use it because the supermarkets will deal with a multiple of products and hence may not get time to deal with all the logistics of individual commodities – this role will be left for the suppliers. All in all, the market is concentrated in the hands of few, and it is these domineering stores Coles is expected to compete with, which means that the competition will be quite stiff. The right media will be chosen to ensure the marketing plan is successful. Therefore, the communication channels will be based on their ability to convey the right message to the target audience in the most effective means. Coles will develop communication channels largely through direct mail, television, radio, as well as the internet. These channels will be used to show consumers how they will benefit by shopping from Coles supermarkets. The products that will be sold by Coles will also act as a channel of communication with the consumers. The Supermarket stores will serve as sources of instant information regarding the sales, available products, location of in-store products and methods of getting out-of-stock items. Generally, the supermarket will exploit channels such as addressable media, interactive media, and mass media. Coles will apply pull strategy, which involves the customers dynamically looking for the company’s products while the retailers requesting for goods in response to direct consumer demand. This strategy will require Coles to establish a strong brand in Spain, which will be achieved through mass media promotions among other strategies of similar nature. In this view, when the supermarket identifies a certain prod uct that the consumers require, the management will ensure it is stocked – this means that the supermarket will be charged with the responsibility of creating the demand while the supply channels will ensure that this demand is met. Coles will adopt a competition-based pricing strategy, whereby the setting of prices will be based on what the rival supermarket are charging (Cannon and Morgan 19). Business Review Coles supermarkets have operated for more than 90 years in Australia. The company has very rich history of Australia especially because it was founded by the founders of Australia’s retail industry. Coles founder, George Coles, after studying best practices in retailing from the US went back to Australia in 1914 and opened stores in Melbourne, Collingwood and Smith Street. The company opened its first supermarket in 1960 in North Balwyn, Victoria. By 1973, Coles had managed to open stores in all the capital cities of Australia (Armstrong and Kotler 56). BI-LO is a chain of supermarket owned by Wesfarmers, which was previously known as Coles Group. BI-LO changed name to Coles Supermarkets during 2006 and 2007 when they attained 180 chains of stores. Following a poor performance of stores which had been converted

Which theory(ies) of persuasion in advertising are the most, or least, Essay

Which theory(ies) of persuasion in advertising are the most, or least, persuasive - Essay Example riety of functions with their advertising campaigns which include informing the public regarding their products and services, persuading the public to purchase their products and services, creating a brand image for their products and services, and reminding the public regarding their products and services (Sutherland & Sylvester, 1993, pp. 20-28). Hence, the main objective of businesses through advertising campaigns is to gain maximum business and earn maximum revenue by selling to more customers or selling more of their product to existing customers. Businesses tend to do this by attempting to persuade customers to perform in the way that the business sees desirable. Accordingly, businesses must take a sequence of steps and use various persuasion theories in order to convince customers to act in the manner the business deems desirable (Odih, 2007, pp. 40-48). Businesses use a variety of theories and appeals in order to engage commercials within their advertising activity. The three main types of advertising appeal that businesses use includes humor appeal in which businesses make funny adverts in order to appeal to consumers and show a light-hearted image of their company and products/services, sex appeal in which businesses use attractive content to appeal to the customer’s sexual preferences, and logic appeal in which business provide appropriate logic for purchasing or using their product/service (Odih, 2007, pp. 51-56). Businesses use a combination of theories in order to engage the customer into their advertising activity. Some theories claim to be more effective than others in attracting customers towards a product/service. The first thing that is essential for an organization to consider is the audience that they are catering to. There may be various types of people with differing personalities within their audience. Hence, it may be rather difficult to appeal to each of the different personalities individually and target the various types of people

Humanities Ethics Coursework Example | Topics and Well Written Essays - 1250 words - 3

Humanities Ethics - Coursework Example He notes than humans use this criterion as a moral importance that they believe succeeds in excluding all animals and including all humans. He points variations that exist among humans themselves that sometimes could undermine the essence of equality among human beings themselves. For instance, he argues that there exist essential differences among humans such as different sizes and shapes, different intellectual abilities, differing moral capacities, differences in ability to communicate effectively, different capacities to experience pain and pleasure, differences in the amount of benevolent feeling and sensitivity towards others. According to singer, humans equally have differences as mentioned hence it could be incredibly erroneous to assert that there should be equality among humans when the differences are profound. In other words, Singer posits that humans then, have only a common ground in which they share a fundamental characteristic. That is, all human beings belong to the species of Homo sapiens. So the existence in the human species confers the moral responsibility of humans to control the lives of other non-human beings. He considers this understanding arbitrary and that human beings should not take advantage on the difference that exist among groups to see themselves as morally important. According to him, â€Å"speciesism† exists and human beings have hijacked the differences in species to confer among themselves moral importance vis-a-vis that of animals (White, 328). Scruton would almost go contrary to the assertions of Singer. But certain distinction need to be made in Singer’s argument, he defends animals and demand that there should be equality. This simply does not mean that animal right should be exactly comparable to that of humans, or to any extent supersedes that of human. Scruton believes that it may be essential to defend the life and rights of animals but, he makes an emphasis that doing so at the expense of human life makes no sense. He believes that human beings have interests while non-humans do not have interests. They may feel the same pain and pleasure but that ends just there, while humans tend to look at the outcome or how certain actions would impact on them. He then believes that it is not appropriate my any mean feat to terrorize the lives of humans for the sake of protecting the interests of animals. On his radar is the Animal Liberation Front in Britain, which he sites as the most dangerous terrorist groups. He also criticizes the Parliament for acting as if they are the representatives of animals. 2. Human â€Å"animal use† runs the gamut from use for food, research, recreation (fighting/hunting), to protection. How would you differentiate between killing bacteria (antibiotics), cockroaches (bug spray), or a rogue tiger, where they pose a real danger to humans? What about using animals in medical research that may save human lives, although the animals may suffer, or die? Shou ld all living things be grouped together under the same rules? Explain. There are very serious moral issues that Scruton cites with relation to animal rights. For instance, he uses the example of fur trade that has seen serious resistance from animal activists. He also cites the situation the Oxford Professor,

How to Write a Thesis Essay Example | Topics and Well Written Essays - 3750 words

How to Write a Thesis - Essay Example The thesis proposal will show your thesis advisor the soundness (or the lack of it) of the thesis problem that you will pursue, the propriety of a research topic or the feasibility of the entire study, among others.One must never forget that in the whole process of thesis writing, constant communication with the thesis advisor is imperative. This thesis advisor is more in the position to suggest improvements, point out mistakes – in short provide invaluable insights that could increase your thesis’ chance of getting high mark. Moreover, the world may be impressed by outward show – neat typography and pretty layout - but assessors in higher education and professional people in your field should not be deceived by ornament. No amount of embellishments could hide the deficiencies in other respects. For instance, we have the inability to use language confidently and correctly, or from the use of inappropriate headings, or from the inclusion of information or ideas th at are inappropriate, irrelevant or out of place.For more resources about thesis writing, you may visit these pages: It is understandable that sometimes, due to time constraints, academic activities overload, a student could not single-handedly finish a thesis project. It may be a result of mistake in planning or adverse circumstances. However the case is, the consequences are quite unthinkable. For some researchers the thesis statement is the research question formulated in order to narrow a subject and give the thesis a direction.

Conspicuous Consumption in America Essay Example | Topics and Well Written Essays - 1500 words

Conspicuous Consumption in America - Essay Example As the report declares Marx’s theories of the fetishism of the commodity informs Veblen’s ideas of possessions having the capability of conferring an abstract noun upon its owner and by the middle of the twentieth century the advertising world had perfected the ability to translate this capability to consumers; at the same time the US economy began depending ever more heavily upon consumption of non-essential goods. Veblen’s â€Å"honor† eventually transformed into something else as the economic divide between rich and poor shrank alongside the growth of the American middle class. That something is called â€Å"status† and advertising works around the clock to convince consumers that status is something they can buy. Marx almost seems to be describing contemporary advertising tactics when he describes how a commodity can be fetishized. â€Å"The mystical character of commodities does not originate, therefore, in their use-value. Just as little does it proceed from the nature of the determining factors of value† This paper stresses that the major shift in the concept of conspicuous consumption from Veblen’s time to contemporary society is that when Veblen coined the term only the wealthy engaged in it; nowadays Americans situated at every point along the economic spectrum freely and willingly engage in consumption that is purely, and all too often only, conspicuous in nature. One needn’t be an economist to figure out that economic growth will be sluggish at best if the primary driving force is a low-profit endeavor.

Corporate Governance and Revised Combined Code Essay

Corporate Governance and Revised Combined Code - Essay Example This was damaging both to the British economy and to the City of London as a market for investors. This series of situations prompted the Stock Exchange to launch the Cadbury Inquiry into the financial aspects of corporate governance in 1990. Corporate governance had become important. The Cadbury Committee Report of December 1992 defines corporate governance (CG) as 'a system by which companies are directed and controlled. Boards of directors are responsible for the governance of their companies. The shareholders' role in governance is to appoint the directors and the auditors and to satisfy themselves that the appropriate governance structure is in place.' The Higgs Report, 10 years later, however, defined CG as, 'a system that provides an architecture of accountability - the structures and processes to ensure companies are managed in the interests of their owners.' The OECD Report of April 1998 provides an international view of corporate governance. It says that 'Corporate governance comprehends that structure of relationships and corresponding responsibilities among a core group consisting of shareholders, board members and managers are best designed to foster the competitive performance required to achieve the corporation's primary objective.' A number of best practices code in CG has emerged as a result ... andard good practices for all company related matters such as board composition and development, remuneration, accountability and audit and relations with shareholders. The Cadbury Committee (1992) recognised that the board of directors in a company should be free to drive their companies ahead but at the same time function within a framework of accountability. The Code was updated by the Hampel Committee in 1998, embracing the recommendations of the Cadbury and Greenbury committee, as well as the Hampel committee. The Combined Code was updated in 2003 with the recommendations of the Higgs Report about the role of non-executive directors and the role of the audit committee (the Smith Report). During this time the UK Government also confirmed that the Financial Reporting Council (FRC) was to have the responsibility for publishing and maintaining the Code. In 2006, further changes were made by the FRC to the code. The latest consultations on a proposal to revise the Combined Code will end in March 2010, after which the UK Corporate Governance Code, as it will be known, will apply to financial years beginning on or after 29 June 2010. First introduced in 1998, The Combined Code has been updated at intervals. The current version of the Code isthe June 2008 edition, which applies to accounting periods beginning on or after 29 June 2008. CG is important as it contributes both to business prosperity and to accountability. A Few Best Practices of CG in the UK United Utilities - Company of the Year 2009 The largest listed water company in the UK, United Utilities, owns, operates and maintains utility assets such as water, wastewater, electricity and gas. The company's commitment towards corporate social and environmental responsibilities has been demonstrated through its

Culture Essay Example | Topics and Well Written Essays - 750 words - 6

Culture - Essay Example addition, cultures can be learnt through interactions that people have, and this is because as individuals interact, they get to understand one another’s perception of things (Rosenblatt 105). Culture has a great influence on one’s communication since it shapes what people think and say all the time. Consequently, culture influences how people think and operate within business or in their professional environments. Rosenblatt (109) explains that in order to understand the impact of culture in business, one has to study the following cultural frameworks: contextual culture and the values attached to culture. Contextual culture refers to the nonverbal signs that are portrayed by an individual during communication. They include things such as gestures and facial expressions. Some cultures attach more value to these cues than to what an individual actually says. They help in interpreting the inner unexpressed feelings of a person, and they can be really helpful during interviews (Rosenblatt 110). High-contextual cultures have a high regard for non-verbal signs, while low-contextual cultures have a high regard for the verbal words that are said by an individual. Rosenblatt (112) asserts that in a communication, one has to study the message being put across closely in order to determine whether the message is direct or indirect. A direct message means that a person means exactly what she/he says, while indirect messages require a deeper understanding. Direct messages are mostly used in high-contextual cultures whereas indirect messages are mostly used in low-contextual cultures. Time orientation is equally important in communication since it shows the importance attached to time in different cultures. Time orientation has two dimensions: polychromic which emphasizes human relations and monochromic which on the other hand stresses on schedules and appointments (Rosenblatt 114). Finally, conflict communication is a key focus in high-context cultures because in these

Distinctive Human Resource Are What Firms Need Essay Example for Free

Distinctive Human Resource Are What Firms Need Essay Introduction Benchmarking is a crucial management tool that guides the stakeholders on the overall performance of the organization as well as mobilizing the employees on a continuous improvement of the organisation’s environmental and social performance. Bench marking is considered to have an impact when the results of the organization performance are immediate (Vorhies and Morgan, 2005). It is essential to recognize that benchmarking and the transfer of the best industry practices are supposed to help an organization in the long run through maximum utilization of the available resources and filling in the gaps associated with an organization poor performance (Drew, 1995). The notion of a single best practice may be overstated. Distinctive human resource practices help to create unique competencies that differentiate products and services and drive competitiveness in organizations. People management practices are the drivers of efforts to create distinctive competencies and, in turn, business strategies. There are various human resource management models that have been used by companies to benchmark and stay competitive in the turbulent business environment and they include the Industrial Organization Model and McKenzie’s 7s Strategy which include shared values, structure, strategy, systems, style, staff and skills. Shared Values Shared values are commonly held beliefs, mindsets, and assumptions that shape how an organization behaves and its corporate culture. Shared values are what engender trust. They are an interconnecting centre of the 7Ss model. Values are the identity by which a company is known throughout its business areas, what the organization stands for and what it believes in, it central beliefs and attitudes. These values must be explicitly stated as both corporate objectives and individual values. Structure Structure is the organizational chart and associated information that shows who reports to whom and how tasks are both divided up and integrated. In other words, structures describe the hierarchy of authority and accountability in an organization, the way the organizations units relate to each other: centralized, functional divisions (top-down); decentralized (the trend in larger organizations); matrix, network, holding among others. These relationships are frequently diagrammed in organizational charts. Most organizations use some mix of structures: pyramidal, matrix or networked ones to accomplish their goals. Strategy Strategies are plans an organization formulates to reach identified goals, and a set of decisions and actions aimed at gaining a sustainable advantage over the competition. Systems Systems define the flow of activities involved in the daily operation of business, including its core processes and its support systems. They refer to the procedures, processes and routines that are used to manage the organization and characterize how important work is to be done. Style Style refers to the cultural style of the organization, how key managers behave in achieving the organization’s goals, how managers collectively spend their time and attention, and how they use symbolic behaviour. How management acts is more important that what management says. Staff Staff refers to the number and types of personnel within the organization and how companies develop employees and shape basic values. Skills Skills refer to the dominant distinctive capabilities and competencies of the personnel or of the organization as a whole. Industrial Organization (I/O) Model The external environment is primary determinant of the organizational strategy rather than internal decisions of managers. The environment presents threats and opportunities all competing to have equal access to resources. Resources are highly mobile between firms. Organizational success is achieved by offering goods and services at lower costs than competitors. Professional sports 49ers †¢ The 49ers have succeeded by using a strategy of long-term player development by recruiting through college drafts rather than trades. This helps the team cement loyalty to the club by the players. Raiders †¢ The Raiders scoop up talented players who fail or do not fit in elsewhere. The club reinforces its strategy through autocracy where the members are not supposed to participate in decision making. The system of the club embraces outside recruit of experienced players. Retailing: Sales as the Service Sears †¢ The Sears selection system requires extensive training. The style keeps track of employee attitude and morale through employee surveys, pay programs to match other retail business through industrial organization model. Nordstrom †¢ The Nordstrom structure of hiring is decentralized and uses no formal selection tests. There are continuous stream of programs to motivate employees with very little attention paid to the staffs in terms of training and commissions when retailing. †¢ The link between employees and product market strategy is sometimes less direct in services, but there are still relationships between the way employees are managed, the competencies employees help produce, and the way companies compete. Professional Service Firms; Information and Advice as the Product Boston Consulting Group (BCG) †¢ The style of BCG is to hire the best undergraduate and MBA students to work for them. †¢ The firm’s system requires rigorous selection procedures and through industrial organization Model provides exceptional compensation to the employees as compared to other organizations. †¢ The firm develops its staff through formal training. †¢ BCG shared value approach expects each team to come up with innovative ways to reinforce its entrepreneurial culture. McKinsey †¢ The professional firm develops its distinctive capabilities through on-campus recruiting and employee skills and development through extensive training model. †¢ The firm’s strategy lies in providing clients with consistent services. The core competency is also consistent with the products and the techniques of the company. Business Schools Harvard Business †¢ The business school staff development represents internal skills development. The school hires employees and turns them into experts. †¢ The business school invests a lot on employee development through the staff model. Wharton School †¢ The school recruitment strategy model relies on external environment to recruit its employees from a network of academicians. †¢ The system model that is used to make the institution maintain a competitive edge in the market is by hiring employees with superior technical skills and by making use of its outside market. Financial Services Chubb †¢ The insurance firm success is based on its shared value model of becoming the insurance of choice. †¢ The firm makes substantial staff investment through its recruitment, intensive training and testing before hiring. American International Group (AIG) †¢ The success of the insurance firm is through its industrial orientation strategy model where the company identifies new areas of business, creates new products, and benefits from the first mover advantage as a result of exploiting the market. †¢ The company’s competencies are its ability to respond to the turbulent business environment. †¢ The company hires from its competitors and invests less on staff development. The Shipping Business FedEx †¢ The shipping business has a strategy model of empowering its employees in the implementation of its vision. †¢ First service company to win the Malcolm Baldridge National Quality Award †¢ Intensive orientation program for staff development. †¢ One hub at FedEx meant that there were fewer coordination problems, allowing for autonomy and participation through it structural model. †¢ This model highly enhances loyalty in employees. UPS †¢ The orientation of the company structure model takes an autocratic approach where the employees have no direct say over work organization matters. †¢ Company standards for each task through its shared value model. †¢ Pays the highest wages and benefits in the industry (Industrial Organization Model). †¢ Productivity of UPS’s drivers is about three times higher than that at FedEx due to its high compensation. †¢ UPS’s business demands a level of coordination that is incompatible with individual employee involvement and a â€Å"high commitment† approach through it structural model. Food and Beverages Coke †¢ Coke builds on employee skills and hangs on them through staff development model. †¢ Coke hires college graduates with little or corporate experience and provides intensive training. †¢ There is promotion and seniority based salary incentives. †¢ Decision making is centralized Pepsi †¢ The company relies on employees’ innovativeness to identify market niches †¢ Pepsi hires employees with experience and advanced technical skills through industrial organization model. †¢ Decision making is decentralized. †¢ Employees have little job security. †¢ Less loyal employees. References Drew, S. A. W. (1995). Strategic Benchmarking: Innovation Practices in Financial Institutions. International Journal of Bank Marketing 13 (1),4-16. Vorhies, D. W., Morgan, N. A. (2005). Benchmarking Marketing Capabilities for Sustainable Competitive Advantage. Journal of Marketing 69 (January Issue), 80–94.

Environmental Factors Influencing Alton Towers Uk Tourism Essay

Environmental Factors Influencing Alton Towers Uk Tourism Essay It was a challenge for me to work on this project, because it is a learning process for me that how, I could tackle this question therefore I collected primary and secondary data for my project and try my best to analyze the whole situation and produce a good Peace of work. I gather information about Theme parks called Alton tower. After getting the brief knowledge about this theme park and their strength and weaknesses, through assess to Alton tower website. With the help of some good secondary data such as different website and books sources. I used some marketing strategies such as segmentation which is used to target different types of consumers and it will help to find out how this theme park can do something new among other competitor further I did a pest analyses , created a good pricing strategies which will help this theme parks to do long term planning and allow them to face different threats and problems in a defendable way . Political factor effect very much because Government changes frequently and every Government makes it own policy, which cancel or postponed the previous policies and new policies are implemented, which start their work from zero point and all the previous work and policies result fruitless. Such as theme park might have problems in pricing strategies , if Taxes increasing , expensive increasing , timing factor etc so due to this it can influence the theme park negatively . On other hand if government policies are in the favor of business sector so might be possible that it will help Alton Tower and they can earn more profit margins ,Such as recently UK government has reduce the VAT value added tax which will increase the demand of costumers coming towards theme parks more so this show that ità ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â‚¬Å¾Ã‚ ¢s a good step taken by government in favor of business sector. . Government Development When it comes to development so government some time can play a vital role in improving the society standard such as government can give funds to theme parks or provide good facilities for people who comes over there for enjoyments such built sitting area , emergency help desk , locater and maps of London in theme parks for tourists . Environmental protection and regulation To protect the environment government always force the theme park management to be stick on this issue and aware there costumers to follow the regulation such as left eating items , garbic , should be through in dustbins and whole theme park should be Cover up by dustbins . Cars should be not allowed in theme parks they should have separate parking yard due to pollution which is spoiling the environment . Government should put billboards of Environmental protection and regulation on entrance of theme parks to aware people. Contract enforcing law over costumerà ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â‚¬Å¾Ã‚ ¢s safety. In this factor government will always try their best to make sure that theme parks are having good safety precaution for costumers and whole theme parks is fully covered by CCTV so that they can defend in good way against any dangerous situation . (Dave, 2004 ) , what is pest analysis. (2008) Economical Inflation In this factor if the price increase over all the UK and there is high amount of inflation in country so this will affect the theme park , because there will be a decrease in public spending due to inflation . further if inflation is rising so there will be increase in cost of theme parks such as expenses will rise up , therefore theme park will have no other option left and they will increase their tickets price also . Economic development If the Alton theme parks does a good business ever year such as many people or tourist love to come to UK for enjoyment and in this case Alton theme park Is a good example of entertainment and many people would like to visit it due to this it will have a positive impact over economic conditions of UK, such as there will be increase in GDP , Globalization will increase and there will be a big boom in tourist industry . Employment Alton theme park is place which is full of entertainment and in this case many people want to visit it in different seasons such as summer vacations is a good season in which theme parks are fully crowded . To handle that demand of people Alton theme park will need workers in their organization every year . Theme park can play a vital role in seasonal employment which is good for economic growth because unemployment will be reduced. Mac Gee (2004) Pg 415, (themeparks UK, 2008), titley, b.pg 378 (1993). Social Life style changes When we talk about life style so now days different people have different life style . According to people they want something new in life so therefore they decide to have some good vacations or holidays so that they can stay relax for some time in such busy world , so theme park like Alton can play a vital role in changing life style of people this theme park can allow people to stay relax and have peace in their life such as it has good atmosphere , hotel nice fun place for family and couples . Population and age population and growth rate is a very important factor which can influence any business in a positive or negative way and when it comes to theme park like Alton tower , they need costumers so that they can have good business growth and UK has a good population which is helpful to this theme park and in this population theme parks are more attractive towards kids around 10 to 15 or teen agers so this will help Alton theme parks to do segmentation of people who can be interested in theme parks and then they can target generation X (10-16 ) and Y (16 à ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬ 20 ) .more . Living conditions This is factor which Alton theme park should focus more because this theme parks have hotel arrangements for costumers therefore they have to be perfect in keeping good Quaintly standard living conditions so that customers are satisfied in a good way and once costumers are happy form there services this will help to improve theme parks image and good growth in sales what is pest analysis. (2008). TECONOLGY E Business This is factor which can also help to improve theme parks sales and growth among other competitors such as theme park should have a online buying ticketing system which can help the theme park to increase its sales . and it allows costumer to book their tickets in advance which is a very nice facility to them , the more facility theme park will provide the more costumer will buy . Machinery Alton theme park has many different types of rides which are running through machines therefore every year this machinery should be checked and renovate so that good service is provided to costumers and this theme parks should introduce more high machinery for rides so that good quality is produces while costumer take those rides . Computers To improve the theme parks image or growth organization should bring new latest computer in theme parks for buying tickets or keeping records of all the sales this will help to reduce time and work will be done more faster . Internet Theme park should give wifi internet facility to costumer as they enter in theme parks so that they should have nice time and there pending work should be done easy through internet . what is pest analysis. (2008). For effective marketing research theme parks should focus more on field research such as they should make questioner , survey and then ask the costumers who come to the theme parks which will allow them to get new idea from costumer point of view and also it will tell them weather they are satisfied or not further more to do good marketing research they should following the pricing strategy and segmentation which I mention in my report and it will help them to improve there weak points into strength and they should also review this pest analyses to make their good position among other competitors and it will help them to defend any harm full situation in good way . 1.4) Price Strategy Competitors(theme park Price Price Strategy Alton tower Thorpe park chessington (One day ) Tickets Adult 35 , child 26 , family, 98 (One day ) Tickets Adult 33, child 21, family 88. (One day ) Tickets Adult 32child 21, family 86. Skimming penetration penetration After a survey of the theme parks market price trend through there website link I found out that Thorpe and chessington has applied penetration among other competitors so that they can have good sales . On other hand Alton tower has applied skimming pricing strategy therefore to compete and achieve high sales they should use markriented price strategy or apply presentation for few months until it adjusts in market. (themeparks UK, 2008) , DF IMK student potal ( 2008) 1.5) Segmentation Good marketing research also contain segmentation which is very much important strategy which can help Alton tower in very effective ways . Segmentation is where we group together costumers intro subsets with common need and characteristics to market a product and if we look at Alton tower they should follow this segmentation which is mention above and also this will give idea to them that they should target people in this limit and this segregation suites Alton tower a lot . Demographic AGE: 16-20 generation Y 10 -16 generations X 35-45 Nesters Gender: Male and Female Nationality: English or European Geographic Country: UK Urban Area: London Psychographic Family life style people (themeparks UK, 2008), (Dave, 2004 ), , DF IMK student potal ( 2008)

EU Economic And Monetary Policy Case Of Spain

EU Economic And Monetary Policy Case Of Spain This research paper aims to discuss how the EU has influenced economic and monetary policies of Spain and vice versa. This dual relationship is of utmost importance as we look at the costs and benefits the EMU has brought to Spain and the possibility of the long-standing inflation problem in Spain affecting EUs monetary policies. EU membership has undoubtedly largely influenced the economic policies and conditions of Spain. For example, Spains accession in 1986 forced the government and economic elites to adopt the necessary policies to embark on economic modernization. In addition, the European Monetary Union (EMU) Maastricht Treaty criteria resulted in Spain having to implement micro and macroeconomic policies like fiscal consolidation, central bank independence and wage moderation (Royo, 2006). Also, the current Greek debt crisis has also thrown the spotlight on Spain which is also undergoing a crisis of itself: competitiveness crisis. With this crisis in mind, it is highly unlike ly but still possible that EU might either choose to expel Spain from the euro area or undergo a series of policy reforms to deal with this crisis. This research paper will begin with an introduction of Spains accession into the EU, followed by the costs and benefits Spain experienced from complying with the EMU Maastricht Treaty. This will be followed by an investigation on the competitiveness crisis in Spain and its influence on the EU. Lastly, this paper will have a discussion on the possible economic and structural reforms that both Spain and EU should undertake to smoothen EU integration for both parties. Spains accession into the EU Before accession into the EU, Spains economy was of a protectionist nature. It remained largely outside the international economic trading area. However in the 1980s, Spain decided to integrate with Western Europe, and was enthusiastic in accommodating to the EC trade customs and rules in order to secure accession. Spain joined the EMU because it was economically beneficial then as the majority of Spains trading partners are in the EU. On January 1986, Spain joined the European community as a full member. Spain was a firm supporter of the European and Monetary Union from the very beginning and rushed to be a part of the European Monetary System (EMS) in 1989 (Sebastian Royo, 2003). The European Monetary Union was established with the purpose of creating and improves trade among European countries. Based on the accession agreement, the taxation policy of Spain was transformed dramatically. Firstly, Spain had to gradually remove custom duties as well as industrial tariffs on EC goods (US Library of Congress). Spains tax rebate on exports had to be removed too. In addition, Spain had to impose a value-added tax (VAT) which had affected Spain negatively in the 1980s. For instance, the introduction of VAT makes Spain a more expensive destination for inbound visitors/tourists and this will affect the Spanish tourism industry. 2.1 Implications of European financial integration on Spain More importantly, membership in the Economic Monetary Union has many implications on Spains domestic economic policies. This is because Spain now loses control of monetary and exchange rate polices to fix problems in its economy and have to rely on the EMUs monetary policy instead. The EMU is tasked with the objective to conduct policies to ensure and achieve stability and growth in the Euro zone (Trichet, 2005). European financial integration kick-started a series of reforms aimed at liberalizing and modernizing the Spanish economy. Accession to ERM and then EMU membership resulted in the reform of the tax system. This reform of the Spanish tax system includes the introduction of VAT as well as a reduction of import duties. This was accompanied by a fiscal consolidation process (reducing government budget and debt deficits). Membership in the EU which resulted in European financial integration has both positive effects and negative effects on the economy. The general consensus is that the economic outcome for Spains membership is still largely positive. For example, gross domestic product per capital (GDP) increased significantly from 1985 and 2005 (Elcano Royal Institute European Parliament Office in Spain, 2006). The Spanish economy has also enjoyed growth since accession. Furthermore Spain has received a large amount of funds since accession and has made use of these funds to finance regional cohesion projects and develop infrastructures to modernise the economy. In addition, with greater exchange rate stability, imports of goods and services in Spain rose significantly and thus there was a greater degree of openness in the Spanish economy. However there remain major differences in economic development between Spain and the leading economies in the EU. Financial integration due to EMU was not totally smooth-sailing for Spain. The financial integration, which resulted in industrial restricting, has adverse effects on the economy in the early 1980: it resulted in high unemployment. In addition, the 1992 EMS crisis was traumatic for Spain. The 1992 crisis originated from an increase in government spending in Germany. This coupled with contractionary monetary policy led to increase in interest rates which affected the rest of the members of the EMU. The result was a sharp decline in the growth rate of real GDP and Spain having to devalue thrice. Many jobs in Spain were lost in the crisis. Fortunately these effects were cushioned somewhat by an economic boom in Spain, the continuing fall in oil prices and large inflow of foreign direct investment into Spain as many foreign companies seek to grab a slice of Spains expanding consumer market (US Library of Congress). Therefore for Spain to seize the benefits of EU membership and enjoy economic growth as well as low inflation, it has to push forward its structural reforms as well undertake sound fiscal policies. Spain till now has succeeded in conducting sound fiscal policies. However its inherent problem of high inflation continues to threaten its competitiveness and hence its trade balance. This has not been resolved quickly partially because of complacency due to its early economic success in the EU (Royo, 2006). European financial integration of the EU which entails efficient free movement of capital, commitment to exchange rate stability as well as harmonization of capital taxes have many positive implications on the Spanish macroeconomic policies. One benefit is that free movement of capital results in a decrease in financial costs for companies and thus allowing companies to raise more resources. However European financial integration has its drawbacks too for Spain. For instance, such commitments come into conflict with the aim of the Spanish government to reduce inflation as such commitments tend to result in lower interest rates thus raising inflation rates. Nevertheless, EU membership has contributed to some extent in lowering inflation in Spain. The introduction of the Euro and the European Central Bank (ECB), have considerable success in limiting price increases. The ECBs main aim of its monetary policy is to keep inflation of those in the euro zone under control and achieves this b y raising interest rates. The ECB therefore sets long-term interest rates for all the EMU countries. Since entering the EMU and participating in the single currency, Euro, the Spanish economy has transformed in a starkly different manner as compared to its counterparts in the EU. Spains economic growth in terms of GDP and inflation rate has been significantly higher than the other member states in the EU (Andres, Hurtado, Ortega, Thomas, 2009). These differentials particularly the inflation differential is most probably caused by the convergence and the integration of foreign markets. In fact, the surrendering of a nations right to pursue autonomous monetary policy as a result of complying with EMU and ECB is one reason why Spain has problems reducing her traditionally high inflation rate. Therefore this is perhaps the reason why Spain is powerless to use initiatives like setting interest rates to control inflation. As mentioned previously, one of the most significant implications of EMU membership for Spain was the convergence of interest rates which resulted in extremely low interest rates in Spain. (Royo, 2006). The drastic decline of interest rates in Spain was necessary in order to secure entry into the EMU. In fact, this convergence of interest rates as a result of EMU membership has an indirect effect on Spains current account trade deficit. Low interest rates led to an explosion of credit and mortgages. This raises houses prices. Low interest rates cause savings to decrease and thus the saving rate is insufficient to finance investment projects, resulting in the private sector having a large trade deficit. Low interest rates also result in excess demand and leading to high goods and wage inflation. Therefore, although membership in the EU served as a primary trigger for the Spain to embark on liberalizing the economy and has largely improved trade, it also contributes to problems regarding Spains trade balance. This is because most of Spains trade partners (countries which Spain exports her products to) are in the EU. (Royo, 2006)This coupled with rising GDP, which increased at a faster rate than exports, resulted in a growing current account deficit. It is important to note that the high inflation problems and the rising current account deficit took place in a setting of fiscal stability (Ubide, 2007). Once again, membership in the EU has resulted in Spain having a lack of monetary and cyclical tools to achieve fiscal surplus and control rising inflation. Having the national currency in a fixed exchange rate due to the EMS thus caused Spain being unable to resolve these economic problems. In other words, if Spain is not a member of the EU and do not participate in the single currency, Euro, she could have devalue her currency with respect to other currencies and improve its competiveness of its exports, and thus improve her trade balance. 3.1 The Competiveness Crisis in Spain The Greek debt crisis has put the spotlight on the peripheral member states of the EU especially Spain. However Spain is undergoing another crisis which of a different nature as compared to Greece. Spains crisis is not due to a lack of budgetary discipline, but caused by the boom in domestic credit (due to convergence in interest rates in the EU). The membership in the EMU can be attributed to the boom in domestic credit leading to the construction boom in Spain. EMU reduced the cost of borrowing for households as real interest rates for households fall substantially. This is due to the reduction in the risk premium as a result of EMU membership. Therefore, reduced cost of borrowing for households led to an increased in number of houses built and thus a boom in the construction industry. The construction boom in the private sector was accompanied by poor economic performance in the other sectors; this resulted in instability as well as trade imbalance. From the late 1990s to 2007, Spain has displayed poor international cost competitiveness (as compared to the rest of the EU members) as a result a significant increase in cost of production especially in the tradable goods sector (Marzinotto, 2010).This significant increase in cost of production is caused by Spains real estate investment boom. Other factors that contributed to poor international cost competitiveness include wage indexation to past high inflation and extension of wages which are agreed at industry level (Marzinotto, 2010). In the 19809s, Spanish firms were facing intense competition from Latin America and the Far East on products like clothing, textile which are Spains main exports. These countries from the Far East and Latin America have leverage on Spain because they are able to produce these goods far cheaper than Spain due to their low wages (Royo, 2006). As a result, Spain is often overlooked by foreign investors who chose to set their operations in these countries instead. This situation worsened when the enlargement of the European Union to the central and eastern European countries materialized. This is because Spain has to deal with new competition from new members on industries which are labor-intensive which form the bulk of Spanish trade. This further affect the trade balance of Spain because these new members also are able to exploit their low wages thus are able to produce cheaper exports as compared to EU. It is a tough obstacle for Spain to resolve the resulting current account deficit because such trade imbalance exists independent of any utilization of sound fiscal policies. This is not only an important issue for Spain but also has an important influence on the EU. This is because the poor international competitiveness of Spain will affect the stability of the Euro too. 3.2 Spains crisis and its implications on the EMU Based on the current competiveness crisis of Spain, one of the unlikely options for Spain is to exit from the euro area. However such an option begs another central question: is a euro exit possible and how will the credibility of the euro being affected? Firstly, the credibility of the euro is unlikely to be threatened if countries like Spain and Greece exit from the euro zone. However in an event of a Spanish exit from the euro zone, it will lead to other troubled nations pondering over similar departures and such spill over effects will create an uncertain environment which is not conducive for further European financial integration. Nevertheless, such concerns may be redundant because the chances of Spain exiting the euro zone or any other member state doing likewise is extremely unlikely because of the difficulty in doing so. One important barrier to exit is the financial integration between the members of the EU has reached a significant degree thus cross-border assets are very high. Therefore an exit will result in massive upheaval (Willams, 2009). Of course there will be benefits for Spain to leave the euro as it implies regaining autonomy in pursuing independent monetary policy as well as exchange rate flexibility. However, the costs of withdrawal are high too. For instance, there will be a cut in access to finance as well as a sharp increase in funding costs due to a removal of funding by the EMU as a result of withdrawal. This thus suggest a likely situation where Spain will remain in the euro zone and attempt to deflate its housing boom without the use of independent monetary policy or currency devaluation. This crisis has wide implications on the EU. The EU cannot and will not hang these struggling economies out to dry. Therefore to fix the competiveness crisis in Spain, there is a need for the EU to make some changes or introduce some frameworks. One possible way in which the EU can manage this crisis is to introduce a system to monitor wage and price developments (Marzinotto, 2010). This is not exactly a novel avenue which the EU has not implemented before. One of the requirements of the Exchange Rate Mechanisms ERM (before the introduction of the euro) was that no member country could change its nominal exchange rate without the consent of the others due to its effects on competitiveness. This is not the case now. Member states can now change its real exchange rates via VAT increases and cuts in social security contributions (Marzinotto, 2010). Therefore in this avenue, the EU should regularly monitor the real exchange rates in the euro zone and should introduce initiatives whenever economic developments pose a threat to the stability and the operation of the EMU. In addition this European competiveness monitoring framework (Marzinotto, 2010) should have a euro-wide perspective and focus as Spains current account deficit means a surplus for another country. Therefore in the event of necessary adjustments, the EMU must take into consideration both the interests of the deficit and surplus member states. In addition to a monitoring framework, there should also be an alert procedure (Marzinotto, 2010)that will have an assessment whenever fluctuations in a countrys current account deficit exceed the predefined limits. In the alert procedure, the country that has flouted the predetermined limits will be assessed based on its efforts to correct this problem. If the assessment is negative, the commission will then propose initiatives to solve the problem based on a euro-wide focus. Nevertheless, despite these recommendations to help Spain and other similar countries to solve such competiveness crisis, the onus is for these countries to make a concerted effort to resolve it via national efforts. The Spanish government should implement a national competiveness monitoring framework (Marzinotto, 2010). This framework includes utilizing a range of policies for remedial action. However this will not be any easy task due to obligations to the EU. Policies that Spain is hindered from using due to euro membership include encouraging inward investment by offering tax incentives and cheap loans to investors as well as devaluation. Therefore there seems to be only supply-side policies which Spain can use to remedy the crisis. Supply-side policies are favourable because an improvement in supply-side performance tends to lead to sustained economic growth without a rise in inflation rate, ceteris paribus. However, a good supply-side performance alone is not sufficient and mus t be accompanied by a sufficiently high level of aggregate demand so the productive capacity of the economy can be utilized. The Spanish government can encourage an entrepreneurial culture by providing regional policy assistance for entrepreneurs and also helping these firms with regards to access to knowledge and advice. In addition, although Spain has managed to maintain a sound fiscal policy, it has not fully utilized the fiscal policy to deflate the housing boom. Spain can modify the tax treatments of interest payments on house loans to cool the domestic housing market. With higher cost of capital, the disposable income of a household will be affected thus leading to a reduction in excess housing demand. In fact Ireland has demonstrated that raising the cost of capital of households can be achieved by removing interest relief on mortgage interest payments, (Gerald, 2004) is possible within the EMU. This goes to show that the loss of independent monetary policy (as a result of EMU membership) to correct the crisis cannot be an excuse for failure. This is because a well targeted fiscal policy can be used effectively to reduce excess demand in the housing market. However such measures undertaken by the Spanish government may not be popular with the Spanish public. 3.3 Efforts by the Spanish government Spanish government launched the National Reform Program (OECD, 2007) in 2005 to identify challenges to the economy (as a result of indirect implications of EMU membership) and propose initiatives to solve these problems. Despite the intentions of the program, it has not been very successful in meeting the challenges. In addition, the tightening by the European Central Bank has not managed to cool the domestic demand in Spain by a small degree. Furthermore, although the housing market in Spain has showed some signs in slowing down, residential investment continue to form a significant part of Spains GDP and house prices are still steadily increasing (OECD, 2007). Industry productivity has not improved significantly thus inflation differential still persist between Spain and the rest of the euro zone members. As compared to other members of the euro zone, Spain has embarked on a fiscal consolidation policy with a more concerted effort. This is because of a need to counterbalance the effects of the current loose monetary policy conditions. Although ECB raised the interest rates in 2007, it had limited success in cooling the domestic demand in Spain. This is partially due to tax reductions on households which increase the households disposable income. Therefore Spain should continue or even enhance its restrictive fiscal stance to reduce pressure on the domestic demand. The Spanish government has also attempted to develop the rental housing market. However it has met with limited success. Therefore, it will be better to gradually phase away any forms of assistance which home owners can receive in order to balance the incentives between renting and purchasing and moderate demand pressures. (OECD, 2007). Another measure is to improve the legal security of relations between owners and tenants so as to improve the use of the housing stock (OECD, 2007). With the gradual decrease in EU transfers to Spain as a result of enlargement, there is an increasing need to have and manage the government budget effectively. The Spanish government has recognized this need and have adopted reforms to improve the management of the government expenditure and resources. The Spanish government limited the growth of government expenditure to below the projected rise in nominal GDP and also used tax revenue to reduce indebtedness (OECD, 2007). The government has also increased the accountability and responsibility of regions regarding their expenditure. This is achieved via increasing the control the regions have over the taxes imposed on their specific regions. This will have the effect of reducing the reliance by these regions on the central government for transfers. Therefore this delegation of responsibility will also enhance the regions revenue raising powers. However there are problems associated with such decentralization, there may be loss of in formation thus affecting efficiency. Therefore there have to be an independent agency to monitor and evaluate the polices of the various government agencies of the respective regions (OECD, 2007). In addition such assessments have to be transparent to the Spanish public. The Spainish government has also reformed the 2003 Fiscal Stability Law (OECD, 2007)in order to maintain fiscal stability and prudence in a decentralised system. According to the 2003 Fiscal Stability Law, each level of the government has to ensure that its accounts are permanenty in balance. In addition, the law assessed the cyclical position of the Spanish economy by monitoring its expected growth rate against it potential. Although this law seems has a great influence on maintaining fiscal stability, the government must execute this law with caution to prevent a situation of a pro-cyclical budgetary outcome where a loose fiscal stance is adopted when times are good and a restrictive fiscal stance when times are bad. Conclusion Since accession into the EU in 1986, Spain has enjoyed a positive economic growth. In addition, EU transfers had also allowed Spain to modernise and develop its economy as well as infrastructure. Although the financial integration process was difficult for Spain with the introduction of VAT and other measures, Spain accommodated its national policies to secure entry into the EMU. Despite Spain maintaining an environment of fiscal stability, the high inflation differerntial between Spain and the rest of the euro zone members threatens to harm Spains international competitiveness. This competition crisis can be partially attributed to the low interest rates set by the EMU thus leading to domestic credit boom and hence excess demand in the housing market. This is a central issue for both the EU and Spain as it has wide implications for both parties. Therefore it is likely that EUs economic policies and framework will be modified to include initiatives like a monitoring framework to mana ge the Spains crisis or other similar crisis by other member states in the future. In addition, although Spain is tied by its obligations to the EMU (which include not being able to devalue its exchange rate or pursuing an independent monetary policy to deflate its booming housing market), there are some supply-side policies and national reforms that Spain can pursue to reduce inflation. Lastly, remedial action by both the EU and Spain will invariably have implications on each other as well on the rest of Europe.