Business Opportunity Fundamental Principles †MyAssignmenthelp.com

Question: Discuss about the Business Opportunity Fundamental Principles. Answer: Introduction The Corporations Act, 2001 (Cth) is a key piece of legislation which is applicable for all the companies in Australia. This act acts as a governing act for the companies in the nation, where each and every aspect of the functioning of the company is ruled by the act. So, from the naming requirement of the company, to its type, from its incorporation to winding up, all such and more provisions are provided under this act (Latimer, 2012). One of the key provisions of this act relates to the director duties covered under Part 2D.1. When the duties laid down under this section are contravened, a case is brought against the directors and they have to face relevant penalties for such breach (Cassidy, 2006). Hannon v Doyle [2011] NSWSC 10 is one of such cases where a breach of director duties was claimed, and these were established by the court, but as they were not claimed upon, no decision was made on these duty braches. This case revolved around the claims of minority oppression management and the resulting remedies from it (Wright, 2011). This report covers a detail of the different aspects which surrounded this case to specifically highlight the duties breached in this case. In this case, David Hannon had applied for leave so as to initiate legal action on behalf of APH, i.e., Afro Pacific Holdings Pty Ltd and APC, i.e., Afro Pacific Capital Ltd, where APH held 88% shares, based on section 237 of the Corporations Act. As he had been a former director and the member of these companies, he made a claim pursuant to section 236(2)(a)(i) and section 236(2)(a)(ii) and left the court to decide upon whether the criteria covered under section 237 of this act was fulfilled. It was argued in the matter of serious question by Hannon that unsecured loans were made by APC to Doyle and Turner and some of these loans were interest free. He also claimed that the 15 million options which APC held in TFC, i.e., Transvaal Ferro Chrome Ltd had been alienated to the two companies which were owned by the two directors of APC, i.e., by Doyle and Turner, along with the options of the company being sold at a price which was below the market value. He also highlighted that Doyle a nd Turner were provided with excessive remuneration by APC (Wright, 2011). A noteworthy point raised by Hannon was that APC had lent some money to Africa Pacific Capital Pty Ltd, herein referred to as Pacific, which was a company formed and owned by Turner and Doyle. Further, Turner and Doyle made Pacific supply certain services to such companies which were the existing clients of APC, and where the services procurement was based. There had also been diversion or transfer of assets to Pacific, and these assets were such to which APC had been entitled. Lastly, Hannon highlighted that no dividend had been paid by APC even when there was amiability of profits, where the dividends could have been paid prudentially. And this gave rise to a claim to be made under section 232 of this act for the oppressive conduct of affairs (Wright, 2011). Duties Breached Under the Corporations Act, the directors of the company have been imparted with certain duties. One of the reasons for imparting these duties on directors is that the minority shareholders of the company are to be protected from oppressive conduct and where such is done, the remedies have to be awarded to the minority shareholders (Paolini, 2014). Under section 181 of this act, the directors have been given the duty to make use of their powers and to undertake their obligation for such a purpose which can be deemed as fair, which is not only undertaken in good faith but also for the best interest of the company (Australasian Legal Information Institute, 2017). A duty has been placed on the directors through section 182 for to not using their position of the company for their own, or for someone elses benefits, particularly when a detriment is caused to the company (WIPO, 2015). In case the provisions covered under these sections are contravened, a civil penalty is applied on the breaching party which is covered under section 1317E of the Corporations Act (Federal Register of Legislation, 2017). Based on this section, the court can make a declaration of contravention and this further gives the option to ASIC to either seek pecuniary penalties based on section 1317G or apply for disqualification order based on section 206C. Based on the duty covered under section 181, is the duty to work in the interest of the different stakeholders of the company (ICNL, 2017). The directors duty is enhanced when it comes to minority shareholders as these shareholders do not hold the ability of influencing the company affairs due to their minority status. So, the directors need to take special care of the shareholders and ensure that the decisions are taken in a manner which denotes the best interest of not only the company but also of its shareholders. Where a director fails in doing so, not only the statutory obligations are contravened, but also claim can be made against them pursuant to section 232 and 232 of this act (Easton, 2013). The claims of Hannon were made for granting leave to the member of company based on section 236(2)(a)(i) as per which he was satisfied that: Based on section 237(2)(a) of this act, it is a possibility that the proceedings would not be brought by the company; Based on section 237(2)(b) that the applicant had been acting in good faith; Based on section 237(2)(c) that it was in the companys best interest to grant the leave to the applicant; and Based on section 237(2)(d) that a serious question had to be tried (Wright, 2011). These points raised by Hannon showed that the directors of the company, i.e., Doyle and Taylor had breached their director duties by not working in the best interest of the company and taking advantage of their position in the company. This is evidence from Doyle and Turner were being overcompensated by the company for the financial year which ended on Feb 29th, 2008 by being paid $1,566,960 and $1,570,234 respectively as consulting fees, which was a sum higher than the reasonable fees in such situations management. Further, these sections were again breached when they benefited their own company, Pacific instead of APC and even caused detriment to APC for benefiting Pacific (Wright, 2011). The court also analysed the use of business opportunity of the director where the business opportunity of one company was taken by another company which had been formed by such director. This diversion was seen as a breach of the fiduciary duties which were owed by the company and also a breach of the statutory duties. However, as these breaches were not claimed by Hannon, a decision was not made on the contravention of these duties. Instead, the court stated that in the best interest of APH, a claim of breach of director duties should be brought against the directors of the company on behalf of Hannon (Wright, 2011). Decision of the Case Each of the issues which were raised by Hannon was separately considered by the judges in this case. With regards to the point raised for the loan, no contention had been made regarding the loans being made. It was noted by the judges that each of the loans was made to either the director or to the entity which was related to the directors. This was seen as a contravention of the fundamental principles as were stated under the case of Aberdeen Railway Co v Blaikie (1854) 1 Macq HL 461. In this case it had been stated that none of the agent of the company could enter into arrangements where a conflicting interest is present, particularly with the interests of such individuals who could be in conflict. This was necessary so that a contract cannot be claimed as being fair or unfair later on. And so, the judges were satisfied that the claims made under section 237(2)(c) and section 237(2)(d) had been rightly claimed (New South Wales Caselaw, 2011). When it came to the options claim regrading TFC, the same reasoning was applied by the judges. It was noted by the judges that it was of not relevant if the options were sold at a price which was lower than the market value based on the "no question is allowed to be raised as to the fairness or unfairness" of the particular contract. And so, the claims made based on the two sections were also satisfied. The court also addressed the claims regarding the overcompensation of Doyle and Turner and stated that indeed the consulting fees were higher than the reasonable fees. And on this basis, again the two subsections were satisfied (New South Wales Caselaw, 2011). In the matter of the last claim regarding the major claims in reference to Pacific, it was noted by the judges that a letterhead was deliberately designed adopted by Pacific which was deceivingly similar to that of APC and there were several misrepresentations made on their website which resulted in an impression being created that APC and Pacific were the same business. Further, Pacific had informed the bankers that the income was received by them from the sale of shares where these shares belong to APC and not to Pacific. Lastly, in this matter, the judges also noted that Pacific and APC operated as one and so they had to be considered as one. Hence, it was concluded by the judges that a serious question indeed had to be tried in this case (New South Wales Caselaw, 2011). It was held by the judges that a serious question was present in this case regarding the claim of oppression made by Hannon which was related to the non-payment of the dividend. However, it was held that the absence of the dividends could not be deemed as sufficient for fulfilling claims under section 232 and that these claims had to be assessed after considering all of the relevant circumstances. In the case at hand, there was a lack of dividends which "may properly be made part of the matrix" of the claims made under section 232, in addition to the particular claims regarding the breach of duty. In the end, it was held by the judges that in this case, section 237(2)(a) and section 237(2) (b) had been clearly fulfilled. And so, it was concluded by the judges that Hannon actually and honestly believed that a good cause of action was present due to the evidence which had been put forward by Hannon, along with the efforts which he had put into for pursing the claims which were made under this section and the findings with regards to the serious question being present. Lastly, they stated that all these claims made by Hannon were indeed in the best interest of the company (New South Wales Caselaw, 2011). Conclusion In the preceding sections, the case of Hannon v Doyle was discussed, which acts as a key example for a claim being raised by the member of the company on behalf of the company, when the company fails to do so itself, as a result of the directors being involved in activities which were not in the best interest of the company. This claim saw a leave appeal being made by Hannon where the judges took into consideration the presence of serious question so as to allow this claim. The claims raised by Hannon were allowed in this case due to the questionable loans made by the directors, the alienation of the share options to the companies of the directors, the provisions whereby excessive remuneration was being provided to the directors, the diversion of business of the company to another company which was owned by the directors and by being engaged in oppressive conduct, which satisfied the criteria laid down under the different sections of the Corporations Act. The director duties were bre ached in this case by Doyle and Taylor on several grounds but owing to the absence of a claim being raised in this regard, a claim of breach of directors duty could not be allowed by the court. References Australasian Legal Information Institute. (2017). Corporations Act 2001. Retrieved from: https://www.austlii.edu.au/au/legis/cth/consol_act/ca2001172/ Cassidy, J. (2006). Concise Corporations Law (5th ed.). NSW: The Federation Press. Easton, M. (2013). Dont forget minority shareholders. [Retrieved from https://www.austlii.edu.au/cgi-bin/viewdoc/au/cases/nsw/NSWSC/2009/342.html?context=1;query=Nassar%20v%20Innovative%20Precasters%20Group%20Pty%20Ltd Federal Register of Legislation. (2017). Corporations Act 2001. Retrieved from: https://www.legislation.gov.au/Details/C2013C00605 ICNL. (2017). Corporations Act 2001. Retrieved from: https://www.icnl.org/research/library/files/Australia/Corps2001Vol4WD02.pdf Latimer, P. (2012). Australian Business Law 2012 (31st ed.). Sydney, NSW: CCH Australia Limited. New South Wales Caselaw. (2011). Hannon v Doyle [2011] NSWSC 10. Retrieved from: https://www.caselaw.nsw.gov.au/decision/54a634483004de94513d82c7 Paolini, A. (2014). Research Handbook on Directors Duties management. Northampton, MA, USA: Edward Elgar. WIPO. (2015). Corporations Act 2001. Retrieved from: https://www.wipo.int/wipolex/en/text.jsp?file_id=370817 Wright, G. (2011). 5.13 Granting of leave to bring derivative proceedings under section 237 of the Corporations Act. Retrieved from: https://www.glenwright.net/files/Granting%20of%20leave%20to%20bring%20proceedings%20under%20the%20Corporations%20Act%202001,%20section%20237.pdf

Scandinavian Airlines and Lufthansa Essay Example

Scandinavian Airlines and Lufthansa Essay Lufthansa: Going Global, but How to Manage Complexity Strayer University Business Administration Capstone – BUS 499 #004016 September 5, 2010 Describe the type of international strategy the company has chosen. An international strategy is a strategy through which the firm sells its goods or services outside its domestic market (Hitt, Ireland Hoskisson, 2009). Lufthansa tends to follow a transnational strategy that will help grow the company internationally and in their own country. Since the September 11 terrorist attacks airlines have been struggling to stay in business. The fear that passengers have is slowing diminishing but it is still affecting the airlines. Airlines have been forced to enforce many regulations and fees adding to their financial struggle. With any international strategy comes a risk. Lufthansa seems to have managed to survive many risks all while being one of three airlines where their debt is to the point of bankruptcy if they have not started it already. Since mergers are illegal across country boarders the response from Lufthansa was an alliance with Star Alliance (Hitt, Ireland Hoskisson). Star Alliance is an alliance that is made up of a partnership amongst several airlines, in an effort to offset costs and create value. The alliance has been a constant balancing act. The alliance was done to help reduce Lufthansa’s debt but has come with many challenges in managing the alliance with Star Alliance. The plan was to increase the revenue side of Star Alliance by keeping passengers’ loyalty to fly with them. Since the late 1999, Lufthansa has been running according to the value –based management. We will write a custom essay sample on Scandinavian Airlines and Lufthansa specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Scandinavian Airlines and Lufthansa specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Scandinavian Airlines and Lufthansa specifically for you FOR ONLY $16.38 $13.9/page Hire Writer The aim of the value-based management approach applies to all planning, steering and monitoring processes in order to achieve a purposeful, long-term and continuous increase in enterprise value in investor’ and lenders interest (Lufthansa Investor Relations). Explain what means the company has used to expand internationally The biggest move that Lufthansa has done to expand internationally and help reduce their debt and increase revenue was to join with Star Alliance. Star Alliance is a group alliance with Lufthansa and airlines like Air Canada, United and SAS Scandinavian Airlines, just to name a few. They are a good option for intercontinental business travel. The alliance helps to reduce costs by coordinated flight schedules, have common lounges and baggage handling. Lufthansa has a few more cost saving strategies in place. While it does affect their employees, they have a cost saving structure resulting from slightly lower wages, they have smaller planes adjusted to the traffic density a reduced services level, an operating base in second-tier airports, and point-to-point-services so that the on time in the air is greater for â€Å"network† airplanes (Hitt, Ireland Hoskisson, 2009). They have also restored antique planes. Lufthansa has some of the newest built planes in their fleet but the rebuilt airplane is for the airplane enthusiast. Enthusiasts wait months and pay C259 ($400. 00) for a bumpy hour long ride on a 1936 Junkers-52 propeller plane (Lufthansa’s Labor of Love). To ensure safety of the passengers the planes are re-built every winter. Identify and describe the elements and objectives of Lufthansa’s cooperative strategy A cooperative strategy is a strategy in which firms work together to achieve a shared objective (Hitt, Ireland Hoskisson, 2009). The alliance that Lufthansa has with Star Alliance is almost by definition a cooperative strategy. The airlines that are in the alliance are all working together to cut costs and develop and grow each of their own airlines. The alliance is a partnership that works for all involved to include the right to leave the alliance. Lufthansa is the leading member in the Star Alliance (Hitt, Ireland Hoskisson). Lufthansa’s value-based management adds viable recognition of cooperative strategy. Lufthansa has a joint venture with Star Alliance that gives Lufthansa strength in its network in the transatlantic traffic. These networks have been used to gain the shared objectives of those in the alliance. Describe the uncertainties and challenges related to operating beyond the company’s national boundaries Having a stable airline is the key to a successful airline. If the airlines in the Star Alliance are not stable they will lose their place in the market. Many think of Lufthansa as the leader and integrator, because the biggest member, United Airlines, was preoccupied for more then three years with emerging from Chapter 11 bankruptcy procedures in the United States. With United Airlines otherwise occupied, Lufthansa was driving the revenue side thus implemented through â€Å"code sharing† leading to higher utilization of planes and infrastructure and sometimes economies of scale in purchasing and sales (Hitt, Ireland Hoskisson). One of the biggest challenges that Lufthansa, actually all airlines, are dealing with is global warming. This is something that most businesses do not need to think about. Airlines claim 3 percent of carbon dioxide comes from the air traffic but because of the higher altitude of the planes they number is rapidly growing and by 2020 the emission from air traffic might increase by 20 percent (Hitt, Ireland Hoskisson). Describe the potential risks of cooperative strategies The decision to be involved in a cooperative strategy is a risk in itself. You are trusting other firms to work with you in order to accomplish mutual goals of financial and organizational stability. One risk is the risk of trust. There is always a risk of one of the firms becoming involved in unethical practices for their own selfish gain. The firms have to trust that the alliance they have developed is based on productive and positive motives. The firms involved in the alliance have to be in it for the good times and bad. Another risk is the entrepreneurial risk. If any of the partners is not making available resources, that can not only bring down that company but it can bring down the value of the alliance. The purpose of the alliance was to develop services and products that would be productive to the alliance. Explain the use of organizational structure and controls to effectively support Lufthansa’s strategy. An organizational structure specifies the firm’s formal reporting relationships, procedures, controls and authority, and decision making processes and organizational controls guide the use of strategy, indicate how to compare actual results with expected results, and suggest corrective actions to take when difference is unacceptable (Hitt, Ireland Hoskisson, 2009). In any business organizational structure and controls are important. Organizational structure develops a chain of command making everyone involved responsible. Lufthansa is no different. Lufthansa is part of the organizational structure of Star Alliance. The formal organization has the CEO who is in charge of legal, HR/Training and finance and strategy and then the corporate office who runs commercial, products and services, loyalty marketing and information technology (Hitt, Ireland Hoskisson). Lufthansa at one point had an integrated corporation and now has six business lines. The business lines are related in the area of shared products and markets and help develop their economies of scale. Their executive board is responsible for managing the company and their goal is growth and adding value. Corporate Profile, 2009) Describe what strategic leadership actions should be recommended for developing human capital at Lufthansa. Human capital refers to the knowledge and skills of a firm’s entire workforce (Hitt, Ireland Hoskisson, 2009). Human capital is the most important aspect in a business. Any business will essentially fail if t hey do not take time to invest time and energy into improving their employees. Lufthansa should continue to invest time in developing and training staff and the management teams to ensure that they have the highest knowledge and the best developed skills. This will not only help Lufthansa but it will help the alliance because of all the changes, additions of the partnerships and acquisitions. It is important for Lufthansa’s strategic leadership to create a positive culture for the continued training and development to build continued success. The investment of building development programs not only build knowledge and skills but it motives employees to want to learn, it can boost internal core values and morals and promotes Lufthansa vision and organizational goals. Lufthansa is operating in a very diverse area with being part of the Star Alliance. It is important for them to develop their employees to fit the needs of the alliance as well as Lufthansa. Describe what strategic leadership actions should be recommended for establishing an effective organizational culture at Lufthansa. Having a strong and positive organizational culture is important to any business. An Organizational culture consists of a complex set of ideologies, symbols, and core values that are shared throughout the firm and influence the way business is conducted (Hitt, Ireland Hoskisson, 2009). Lufthansa used to be known for a strong culture based on pride, the positive image of the company in Germany, its reputation for engineering excellence and ongoing training and educational activities. However, in 2001 there was a pilots strike that showed the changes within the company and the unhappiness of the employees toward the company was not as good as they thought. The management teams should make sure they are fully aware of the diversity within the segments of the business. They need to make sure they are communicating any messages, training or even promotions to fit the different cultural diversities within Lufthansa. All the employees should be involved in solutions to problems, to include the discovery of them, within their core position. It is also necessary for the leadership to make sure they are leading by example not just in working but in ethical practices. It is the leadership’s responsibility to encourage all employees on all levels to follow their lead. Improving an organization’s culture will do nothing but increase the company’s value and the opinion of its employees; from simply an employee working for a paycheck, to an employee who feels they have worth. The employees then will want to invest time and energy into the company. Describe what strategic leadership actions should be recommended for promoting an entrepreneurial mind-set at Lufthansa. Lufthansa main goal, like any other business, is to maintain financial discipline and health. Because of the crisis from 2001-2004, the gearing increased from 36 percent in 2000 to 85. 4 percent in 2005 and because of that the operating goals are dominant and Lufthansa has learned to focus its cost cutting on the cash flow impact (Hitt, Ireland Hoskisson, 2009). Lufthansa should continue to lead by allowing its acquisitions to keep their identities and brand but operate with limited control. Investing in developing their training of their staff and managers will help in maintaining that financial discipline by having well rounded and educated employees who will limit the mistakes they could be making without the knowledge and training. It is important for Lufthansa to have an entrepreneurial mindset to gain the advantage over its competitors and even for keeping the lead within Star Alliance. With Lufthansa having an entrepreneurial mindset they are showing that they are a committed business that will focus on gaining financial growth and developing more and stronger value to the business. They should be involved in strategic entrepreneurship and focus on opportunities in the external environment of the business. They should make sure that all the segments have the means to grow innovatively and reward them when success is apparent. Lufthansa is one of the world’s largest airlines with 424 aircrafts and 39,500 employees. They transport approximately 55. 5 million passengers every year; they have sales revenue of 39. 1 billion dollars and have been a member of Star Alliance since May 1997 (Lufthansa a Star Alliance Member). This all shows the current success of Lufthansa and that their entrepreneurial mind set is going in the correct and positive direction. Describe what strategic leadership actions should be recommended for reducing complexity at Lufthansa. It is important for Lufthansa to have knowledge of all the segments in the division’s internal operations. Top management must stay well versed in global economics with the fluctuating prices of oil, the competition, and increasing no-frills airlines. Because of the alliance with Star Alliance they have pushed themselves into the center of the world of complexity. It will be important for them to keep a well rounded culture by having diversity in top management to include females in top positions. The top management team must have knowledge of their European counterparts in order to stay on top. Not only will top management have to deal with the complexity but they will have to work hard to remain a part of the world’s leading airline. The top management team can be used to make strategic decisions along with CEO and ensure that the decisions are followed not by just the employees but by members of top management. Maintaining the knowledge and training that Lufthansa had developed is a must. Because of the high priced competitive market, Lufthansa’s segments will need different cost structures and support financially. They will need to monitor the acquisitions, partnership and alliances to make sure that there are no unnecessary expenses and that no one is being non-productive. References Corporate Profile (2009), Retrieved September 3, 2010 from http://www. lufthansa- cargo. com/content. jsp? path=0,1,19142,91382,99001 Hitt, M. , Ireland, D. R. Hoskisson, R. E. 2009), Strategic Management: Competitiveness and Globalization, Concepts and Cases. Ohio: Cengage Learning. Lufthansa a Star Alliance Member (2010), Retrieved September 3, 2010 from http://www. staralliance. com/en/about/airlines/lufthansa/ Lufthansa Investor Relations (2009), Retrieved August 24, 2010 from http://investor- relations. lufthansa. com/en/fakten-zum-unternehmem/group-strategy. html Michaels, D. (2008). Lufthansaâ €™s Labor of Love: Restoring Some Really Old Junkers, Retrieved August 25, 2010from http://online. wsj. com/article/SB121357457537975947. html? mod=hps_us_inside_today Scandinavian Airlines and Lufthansa Essay Example Scandinavian Airlines and Lufthansa Essay Lufthansa: Going Global, but How to Manage Complexity Strayer University Business Administration Capstone – BUS 499 #004016 September 5, 2010 Describe the type of international strategy the company has chosen. An international strategy is a strategy through which the firm sells its goods or services outside its domestic market (Hitt, Ireland Hoskisson, 2009). Lufthansa tends to follow a transnational strategy that will help grow the company internationally and in their own country. Since the September 11 terrorist attacks airlines have been struggling to stay in business. The fear that passengers have is slowing diminishing but it is still affecting the airlines. Airlines have been forced to enforce many regulations and fees adding to their financial struggle. With any international strategy comes a risk. Lufthansa seems to have managed to survive many risks all while being one of three airlines where their debt is to the point of bankruptcy if they have not started it already. Since mergers are illegal across country boarders the response from Lufthansa was an alliance with Star Alliance (Hitt, Ireland Hoskisson). Star Alliance is an alliance that is made up of a partnership amongst several airlines, in an effort to offset costs and create value. The alliance has been a constant balancing act. The alliance was done to help reduce Lufthansa’s debt but has come with many challenges in managing the alliance with Star Alliance. The plan was to increase the revenue side of Star Alliance by keeping passengers’ loyalty to fly with them. Since the late 1999, Lufthansa has been running according to the value –based management. We will write a custom essay sample on Scandinavian Airlines and Lufthansa specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Scandinavian Airlines and Lufthansa specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Scandinavian Airlines and Lufthansa specifically for you FOR ONLY $16.38 $13.9/page Hire Writer The aim of the value-based management approach applies to all planning, steering and monitoring processes in order to achieve a purposeful, long-term and continuous increase in enterprise value in investor’ and lenders interest (Lufthansa Investor Relations). Explain what means the company has used to expand internationally The biggest move that Lufthansa has done to expand internationally and help reduce their debt and increase revenue was to join with Star Alliance. Star Alliance is a group alliance with Lufthansa and airlines like Air Canada, United and SAS Scandinavian Airlines, just to name a few. They are a good option for intercontinental business travel. The alliance helps to reduce costs by coordinated flight schedules, have common lounges and baggage handling. Lufthansa has a few more cost saving strategies in place. While it does affect their employees, they have a cost saving structure resulting from slightly lower wages, they have smaller planes adjusted to the traffic density a reduced services level, an operating base in second-tier airports, and point-to-point-services so that the on time in the air is greater for â€Å"network† airplanes (Hitt, Ireland Hoskisson, 2009). They have also restored antique planes. Lufthansa has some of the newest built planes in their fleet but the rebuilt airplane is for the airplane enthusiast. Enthusiasts wait months and pay C259 ($400. 00) for a bumpy hour long ride on a 1936 Junkers-52 propeller plane (Lufthansa’s Labor of Love). To ensure safety of the passengers the planes are re-built every winter. Identify and describe the elements and objectives of Lufthansa’s cooperative strategy A cooperative strategy is a strategy in which firms work together to achieve a shared objective (Hitt, Ireland Hoskisson, 2009). The alliance that Lufthansa has with Star Alliance is almost by definition a cooperative strategy. The airlines that are in the alliance are all working together to cut costs and develop and grow each of their own airlines. The alliance is a partnership that works for all involved to include the right to leave the alliance. Lufthansa is the leading member in the Star Alliance (Hitt, Ireland Hoskisson). Lufthansa’s value-based management adds viable recognition of cooperative strategy. Lufthansa has a joint venture with Star Alliance that gives Lufthansa strength in its network in the transatlantic traffic. These networks have been used to gain the shared objectives of those in the alliance. Describe the uncertainties and challenges related to operating beyond the company’s national boundaries Having a stable airline is the key to a successful airline. If the airlines in the Star Alliance are not stable they will lose their place in the market. Many think of Lufthansa as the leader and integrator, because the biggest member, United Airlines, was preoccupied for more then three years with emerging from Chapter 11 bankruptcy procedures in the United States. With United Airlines otherwise occupied, Lufthansa was driving the revenue side thus implemented through â€Å"code sharing† leading to higher utilization of planes and infrastructure and sometimes economies of scale in purchasing and sales (Hitt, Ireland Hoskisson). One of the biggest challenges that Lufthansa, actually all airlines, are dealing with is global warming. This is something that most businesses do not need to think about. Airlines claim 3 percent of carbon dioxide comes from the air traffic but because of the higher altitude of the planes they number is rapidly growing and by 2020 the emission from air traffic might increase by 20 percent (Hitt, Ireland Hoskisson). Describe the potential risks of cooperative strategies The decision to be involved in a cooperative strategy is a risk in itself. You are trusting other firms to work with you in order to accomplish mutual goals of financial and organizational stability. One risk is the risk of trust. There is always a risk of one of the firms becoming involved in unethical practices for their own selfish gain. The firms have to trust that the alliance they have developed is based on productive and positive motives. The firms involved in the alliance have to be in it for the good times and bad. Another risk is the entrepreneurial risk. If any of the partners is not making available resources, that can not only bring down that company but it can bring down the value of the alliance. The purpose of the alliance was to develop services and products that would be productive to the alliance. Explain the use of organizational structure and controls to effectively support Lufthansa’s strategy. An organizational structure specifies the firm’s formal reporting relationships, procedures, controls and authority, and decision making processes and organizational controls guide the use of strategy, indicate how to compare actual results with expected results, and suggest corrective actions to take when difference is unacceptable (Hitt, Ireland Hoskisson, 2009). In any business organizational structure and controls are important. Organizational structure develops a chain of command making everyone involved responsible. Lufthansa is no different. Lufthansa is part of the organizational structure of Star Alliance. The formal organization has the CEO who is in charge of legal, HR/Training and finance and strategy and then the corporate office who runs commercial, products and services, loyalty marketing and information technology (Hitt, Ireland Hoskisson). Lufthansa at one point had an integrated corporation and now has six business lines. The business lines are related in the area of shared products and markets and help develop their economies of scale. Their executive board is responsible for managing the company and their goal is growth and adding value. Corporate Profile, 2009) Describe what strategic leadership actions should be recommended for developing human capital at Lufthansa. Human capital refers to the knowledge and skills of a firm’s entire workforce (Hitt, Ireland Hoskisson, 2009). Human capital is the most important aspect in a business. Any business will essentially fail if t hey do not take time to invest time and energy into improving their employees. Lufthansa should continue to invest time in developing and training staff and the management teams to ensure that they have the highest knowledge and the best developed skills. This will not only help Lufthansa but it will help the alliance because of all the changes, additions of the partnerships and acquisitions. It is important for Lufthansa’s strategic leadership to create a positive culture for the continued training and development to build continued success. The investment of building development programs not only build knowledge and skills but it motives employees to want to learn, it can boost internal core values and morals and promotes Lufthansa vision and organizational goals. Lufthansa is operating in a very diverse area with being part of the Star Alliance. It is important for them to develop their employees to fit the needs of the alliance as well as Lufthansa. Describe what strategic leadership actions should be recommended for establishing an effective organizational culture at Lufthansa. Having a strong and positive organizational culture is important to any business. An Organizational culture consists of a complex set of ideologies, symbols, and core values that are shared throughout the firm and influence the way business is conducted (Hitt, Ireland Hoskisson, 2009). Lufthansa used to be known for a strong culture based on pride, the positive image of the company in Germany, its reputation for engineering excellence and ongoing training and educational activities. However, in 2001 there was a pilots strike that showed the changes within the company and the unhappiness of the employees toward the company was not as good as they thought. The management teams should make sure they are fully aware of the diversity within the segments of the business. They need to make sure they are communicating any messages, training or even promotions to fit the different cultural diversities within Lufthansa. All the employees should be involved in solutions to problems, to include the discovery of them, within their core position. It is also necessary for the leadership to make sure they are leading by example not just in working but in ethical practices. It is the leadership’s responsibility to encourage all employees on all levels to follow their lead. Improving an organization’s culture will do nothing but increase the company’s value and the opinion of its employees; from simply an employee working for a paycheck, to an employee who feels they have worth. The employees then will want to invest time and energy into the company. Describe what strategic leadership actions should be recommended for promoting an entrepreneurial mind-set at Lufthansa. Lufthansa main goal, like any other business, is to maintain financial discipline and health. Because of the crisis from 2001-2004, the gearing increased from 36 percent in 2000 to 85. 4 percent in 2005 and because of that the operating goals are dominant and Lufthansa has learned to focus its cost cutting on the cash flow impact (Hitt, Ireland Hoskisson, 2009). Lufthansa should continue to lead by allowing its acquisitions to keep their identities and brand but operate with limited control. Investing in developing their training of their staff and managers will help in maintaining that financial discipline by having well rounded and educated employees who will limit the mistakes they could be making without the knowledge and training. It is important for Lufthansa to have an entrepreneurial mindset to gain the advantage over its competitors and even for keeping the lead within Star Alliance. With Lufthansa having an entrepreneurial mindset they are showing that they are a committed business that will focus on gaining financial growth and developing more and stronger value to the business. They should be involved in strategic entrepreneurship and focus on opportunities in the external environment of the business. They should make sure that all the segments have the means to grow innovatively and reward them when success is apparent. Lufthansa is one of the world’s largest airlines with 424 aircrafts and 39,500 employees. They transport approximately 55. 5 million passengers every year; they have sales revenue of 39. 1 billion dollars and have been a member of Star Alliance since May 1997 (Lufthansa a Star Alliance Member). This all shows the current success of Lufthansa and that their entrepreneurial mind set is going in the correct and positive direction. Describe what strategic leadership actions should be recommended for reducing complexity at Lufthansa. It is important for Lufthansa to have knowledge of all the segments in the division’s internal operations. Top management must stay well versed in global economics with the fluctuating prices of oil, the competition, and increasing no-frills airlines. Because of the alliance with Star Alliance they have pushed themselves into the center of the world of complexity. It will be important for them to keep a well rounded culture by having diversity in top management to include females in top positions. The top management team must have knowledge of their European counterparts in order to stay on top. Not only will top management have to deal with the complexity but they will have to work hard to remain a part of the world’s leading airline. The top management team can be used to make strategic decisions along with CEO and ensure that the decisions are followed not by just the employees but by members of top management. Maintaining the knowledge and training that Lufthansa had developed is a must. Because of the high priced competitive market, Lufthansa’s segments will need different cost structures and support financially. They will need to monitor the acquisitions, partnership and alliances to make sure that there are no unnecessary expenses and that no one is being non-productive. References Corporate Profile (2009), Retrieved September 3, 2010 from http://www. lufthansa- cargo. com/content. jsp? path=0,1,19142,91382,99001 Hitt, M. , Ireland, D. R. Hoskisson, R. E. 2009), Strategic Management: Competitiveness and Globalization, Concepts and Cases. Ohio: Cengage Learning. Lufthansa a Star Alliance Member (2010), Retrieved September 3, 2010 from http://www. staralliance. com/en/about/airlines/lufthansa/ Lufthansa Investor Relations (2009), Retrieved August 24, 2010 from http://investor- relations. lufthansa. com/en/fakten-zum-unternehmem/group-strategy. html Michaels, D. (2008). Lufthansaâ €™s Labor of Love: Restoring Some Really Old Junkers, Retrieved August 25, 2010from http://online. wsj. com/article/SB121357457537975947. html? mod=hps_us_inside_today

April 17, 2017 Essays (328 words) - Construction, Home, House

April 17, 2017 Essay A house is a building that functions as a home , ranging from simple dwellings such as rudimentary huts of nomadic tribes and the improvised shacks in shantytowns to complex, fixed structures of wood, brick, concrete or other materials containing plumbing, ventilation and electrical systems. [1] [2] Houses use a range of different roofing systems to keep precipitation such as rain from getting into the dwelling space. Houses may have doors or locks to secure the dwelling space and protect its inhabitants and contents from burglars or other trespassers. Most conventional modern houses in Western cultures will contain one or more bedrooms and bathrooms , a kitchen or cooking area, and a living room . A house may have a separate dining room , or the eating area may be integrated into another room. Some large houses in North America have a recreation ro om . In traditional agriculture-oriented societies, domestic animals such as chickens or larger livestock (like cattle) may share part of the house with humans. The social unit that lives in a house is known as a household . Most commonly, a household is a family unit of some kind, although households may also be other social groups , such as roommates or, in a rooming house , unconnected individuals. Some houses only have a dwelling space for one family or similar-sized group; larger houses called townhouses or row houses may contain numerous family dwellings in the same structure. A house may be accompanied by outbuildings , such as a garage for vehicles or a shed for gardening equipment and tools. A house may have a backyard or frontyard, which serve as additional areas where inhabitants can relax or eat.

Competitive Strategies for Service Organizations Case Study

Competitive Strategies for Service Organizations Case Study Competitive Strategies for Service Organizations – Case Study Example The paper "Competitive Strategies for Service Organizations" is a brilliant example of a case study on marketing. Nakha, is one of the renowned advertising agencies in Qatar and has been very successful over the years. This is because of the effective strategies that it has been incorporated which can be seen to align with its goals. One of the key aspects of its success is closely related to the effective strategic positioning of its service in the market. The organization provides an assortment of services such as advertisement design, promotional idea, event planning, presentation, research, and survey and consulting. These services are highly attractive to the clients as well as reasonable in terms of prices charged to clients. Hence, the clients are highly satisfied. Thus, the positioning of the products of Nakha can be placed in the quadrant of highly attractive and average priced in the map of market positioning (Botten McManus, 1999). The marketing/service mix contains 7 ele ments, which are commonly known as 7Ps. The first element is the product. The products of Nakha generally consist of advertisement design, event planning, presentation, promotional idea, research, and survey and consulting. The second element is the price, which is highly reasonable and on the average mark for the products of Nakha. Moreover, the element place refers to the offices of Nakha and its availability on television, internet, radio and social media networking sites such as Facebook and Twitter among others. The other element is promotion. The promotional tools that it uses are the social media networking sites including Facebook. Furthermore, People is also a crucial element of the service mix. The dimension of people here implies the proprietors of Nakha, the employees, the clients and the viewers of the advertisements. In addition, another element is the physical evidence. For Nakha, the physical evidence is the video footage, payment receipts, and cheques among others. Last but not least the seventh element is the process. The process that Nakha follows is classified as an information possessing process (Botten McManus, 1999).

Walmart VS. Target Research Paper Example | Topics and Well Written Essays - 1000 words

Walmart VS. Target - Research Paper Example An ancient business analyst, Fernandez, in his publication once depicted that business and humankind are inseparable (98). This shows that the success of business entities and that of humankind are dependant of each other. With the increasing need to sustain human need, numerous business entities have been put in place. The quality and manner of delivery of the products determine the success the organizations realize. It is arguable that human needs are better satisfied when there is free entry and exit into the market. This increases competition, lowering the product’s prices and ensuring better services and service delivery (Chapman 15). In the competition of big box retailers, it is hard for two different firms such as Wal-Mart and Target to achieve the same kind of success in their operation. The first factor that makes Wal Mart to be rated above target is that Wal-Mart provides locally grown products, products that provide energy efficiently, and policies of innovative internal recycling (Kipple, et. al. 174). This has made the company dominate in the market. However, it does not have fair policies for its workers and the wage rate hourly of $10.76 is arguably not impressive. The number of employees at Wal-Mart is around 2.1 million. This proves that the progress of the company is very evident (Murphy 57). Further, the company has expanded to 15 countries with 8,100 retail units. This means that the firm has won a bigger market share than Target. The average revenue recorded by the firm totals $405.6 billion annually. The annual revenue is the commonly used determinant of the company’s success. This means that the firm is successful. From Schwartz Ariel’s article, Sustainability Faceoff: Walmart vs. Target, the number of employees in Target is approximatel y 351,000, which is relatively lower than Wal-Mart. In the entire United States, the firm has initiated stores in 48 states, bringing the retail units to 1,684 stores. This

The Research Proposal Dissertation Example | Topics and Well Written Essays - 2000 words

The Research Proposal - Dissertation Example The presence of such significant number of industries in the region also invariably affect the environment of the region specifically and UK generally. London is also considered as the third command city in the world after New York and Tokyo because of the fact that it is the leading financial hub of the world. The overall population of London is however, mostly employed by the Services sector with less than a million population working in the manufacturing sector. Region’s only substantial manufacturing facility is Ford Dagenham which is also the largest diesel engine manufacturing facility in the world. Though the overall concentration of industry is low in the region however, it can still pose a threat to the environment. This proposed research study therefore aims to assess and explore the impact of industry in greater London on the environment of UK generally and Southern England specifically. Aims and Objectives of the Research The major aim of this research study is to understand and explore as to how the industry of great London impact on the environment of UK and especially the Southern England. ... How industries in great London have an impact on environment? 2. Are there any particular types of industries which are affecting the environment most? 3. Whether regulatory requirements for environment are being met by the industry? A general assessment of the regulatory requirements and the implementation will be undertaken to understand as to whether regulations have any influence on reducing the impact. 4. Does industry is taking efforts to lessen such impact? 5. If yes, what measures have been taken so far in order to contain the damage? These broader aims and objectives will therefore set the overall tone and direction of the research. These research objectives will also allow the researcher to set the overall research questions and hypothesis for this research. Research questions and Hypothesis Following research questions and hypothesis will be constructed for the purpose of this research: 1. Industry has significant impact on the environment. Industry does not have any impac t on the environment? 2. Businesses have put in place appropriate security and risk measures to reduce the impact on environment. There are no significant efforts taken by the industry to reduce the impact on environment. 3. Regulations have been successful in compelling businesses to reduce the harmful impact on environment. Regulations have failed to compel businesses to reduce the harmful impact on environment. Literature Review Greater London region has important significance in the economy of UK and contributed towards the economy to a great extent. It is also however, important to note that the economy of London went through a structural change where the focus was shifted from the manufacturing to services sector. Greater London therefore is still dominated by the firms

Edmund Husserl's Cartesian Meditations (topic upon your own decision) Essay

Edmund Husserl's Cartesian Meditations (topic upon your own decision) - Essay Example Edmund Husserl's is one such philosopher who lived in the more modern world. His work was concerned about phenomena and how the human mind interacts with it. In his book titled Cartesian Meditations: An Introduction to Phenomenology, Edmund Husserl (1960) introduces a number of significant philosophical thoughts. One of the most prominent of these is transcendental phenomenology in which the author gives a new way of analysing phenomena. This kind of thinking looks at phenomena from a different point of view. Although Edmund’s views can be seen as having been inspired by Rene Descartes, a French philosopher and mathematician in the 17th century, Edmund’s theories on phenomena seen to be developed in contrast to what Descartes developed. This can be particularly seen in his transcendental phenomenology which tries to see phenomena in a very different way. Unlike Descartes, Edmund and his school of thought argued that phenomenal can be seen in different dimensions (Husser l, 1960). In fact, Edmund argued that it is possible to take a phenomenal and strip it down to its very essence. In other words, transcendental phenomenology as developed by Edmund postulates that with regard to phenomena, there are those elements which are essential for that phenomenon to exist and there are those which are merely conceptual as conceived by human beings. To be able to separate the essential from the conceptual, Edmund used eidetic reduction. Eidetic Reduction Eidetic reduction is a process by which phenomena can be stripped to its basic essential aspects, without changing it. Eidetic reduction is a conceptual tool that can be used to understand Edmund’s transcendental phenomenology as a way to understand phenomena. Eidetic reduction can be traced back to Descartes. Descartes used a block of wax phenomena as a way to explain the layers of phenomena. For example, the wax can be experienced by the five senses in regard to its shape and the space it occupies, th e smell it exudes, the texture, its opaqueness etc. However, by heating up the block of wax, these properties of the wax can be changed without changing it into another object. In other words, once the wax has been heated up, it will lose its texture, its shape, space and its opaqueness will be changed to transparency. Yet, even after all these characteristics have been changed, the wax will continue to be wax. This means that the block of wax is perceived in two particular ways. The first is one the essential properties of the wax and the second one are the perceived or non essential properties of the wax. Edmund argued that the same can be applied with regard to people’s thoughts. In other words, people’s thoughts can be seen to have both the essential aspects of phenomena and other aspects of phenomena which are more conceptual or perceptual. Using eidetic reduction however, Edmund argues that these thoughts can be stripped down to their basic or essential details. The importance of this kind of stripping is that it leads to a more practical reality, as opposed to when phenomena is understood while it is still shrouded in non-essential properties. Edmund was an essentialist in that he believed that phenomena should be understood in its very essence without being affected by the other factors. However, with regard to ph