Revenue or Yield Management in Hospitality Industry

Question: Examine about the Revenue or Yield Management in Hospitality Industry. Answer: Presentation Income the executives is basic for accomplishment of the budgetary objectives for each association in any case its industry, nature of business, or size of its activities. There are two essential components in the income the board, for example, request and cost. The administration of these two essential components is pivotal to guarantee appropriate income the executives lined up with the hierarchical objectives and systems (Huefner, 2011). Accordingly, the income the board could be characterized as a restrained way to deal with break down and foresee the customer request and set the costs to guarantee fulfillment of the ideal incomes. In this specific circumstance, a report has been set up here that manages different urgent parts of the income the board in the accommodation segment. This report covers conversation on the specialized terms utilized in income the board in the accommodation part, for example, inhabitance, ADR, and RevPAR. Further, the report additionally covers strategies to dissect inns execution alongside investigation of the contenders. The investigation of contenders is essential to check own shortcoming and embedding elective answers for beat such saw shortcomings (Huefner, 2011). Furthermore, the conversation has likewise been put over the yield the board procedures to be received by the supervisors of a lodging. Meaning of Occupancy, ADR, RevPAR Comprehension of the specialized terms, for example, inhabitance, ADR, RevPAR is significant in incomes the board. In the friendliness segment, inhabitance rate alludes to the unit request. It is determined by separating the consumed rooms of an inn by all out number of rooms accessible for rental (Hayes, Ninemeier, Miller, 2011). The inhabitance rate is utilized in registering the interest, which is an essential component of income calculation. Another significant component of income calculation in the friendliness segment is the normal every day rate (ADR). The normal every day rate speaks to the rental incomes per involved rental unit, for instance room. The RevPAR is alluded as income per accessible room, which is figured by increasing the ADR by inhabitance pace of the inn. In the accommodation division, the RevPAR is utilized to gauge the presentation of inn and its administration over a given timeframe (Hayes, Ninemeier, Miller, 2011). Examination of the Hotels Performance against Its Competitors The principal thing that could be seen about the lodging is the high inhabitance rate as appeared in the Smith Travel Research (STR) report. The report shows that inhabitance pace of the inn is higher than its rival in all week day with the exception of Saturday. It has been seen that the inhabitance pace of the inn on Saturday was 94.70%, against which the contender accomplished an inhabitance pace of 94.80%, which is insignificantly higher (Appendix). The high inhabitance rate unmistakably demonstrates that the inn is sought after. Further, the pattern in regard of inhabitance of the lodging additionally portrays increment by 39.10% in the present week when contrasted with just 6.90% expansion on account of the contender (reference section). The following thing saw in regard of the inn was the low normal every day rates (ADR). It was seen that the lodging kept up ADR of 40.79 in the present week as against the ADR of 69.39 of its rival. It might be that the lodging is following procedure to keep up low ADR to draw in more clients. The organizations receive changes in the costs to inject request, however the adjustment in the cost ought not bring about decrease in the general incomes. The third perception in regard of RevPAR shows that the equivalent has happened to the lodging in the present week. The lodging decreased ADR so low that its RevPAR went lower than that of its rival. For the present week, RevPAR of the lodging was 36.43 as against 45.32 of its rival (Appendix). Subsequently, regardless of keeping up high inhabitance, lodgings RevPAR went down, which demonstrates that the decrease in the ADR was not reasonable. Consequently, in view of RevPAR, it could be verbalized that the presentation of the inn has been down when contrasted with its rival. In any case, the lodging has developed a strong client base, which is delineated in the high inhabitance rate; along these lines, later on, supported increment in ADR could be made to pick up from the circumstance (Ivanov, 2014). Approaches to Analyze the Competitors In the present business situation of throat cut rivalry, it has been gotten basic for the organizations to keep eyes on the contenders and examine their qualities, shortcomings, and procedures. For this reason, SWOT (quality, shortcoming, opportunity, and danger) examination of the contender can be done. SWOT investigation centers around the examination of four center components, for example, qualities and shortcomings of the business and openings and dangers exuding from the earth (Varghese, 2012). The aftereffects of the SWOT investigation unveil the center capabilities of the contender and the powerless regions, which can be misused by others. In spite of the fact that SWOT investigation covers all the critical regions of business, for example, advertising, account, and organization, yet it underscores much on promoting (Varghese, 2012). Nonetheless, it ought to be noticed that investigation of the showcasing procedures and skills of the contenders isn't the main viewpoint that should be investigated in a contender examination. There are vital territories, for example, fund, which ought to be dissected in a contender investigation. For this reason, the fiscal reports of the contender for going before years state for 5 or 10 years could be alluded. The investigation of the fiscal report uncovers the monetary exhibition and position of the organization, which is important to comprehend the remaining of the rival in the commercial center (Varghese, 2012). Yield Management Strategies The yield the executives methodologies are applied with the end goal of viably dealing with the incomes by modifying the costs of products or administrations. These procedures are viable in overseeing incomes when the assets are limit, for instance, rooms if there should be an occurrence of lodgings, carriers in the event of an aircraft organization. The basic role of yield the board system is to diminish the wastage and expand the yield inside the requirement of the assets (Ingold, Yeoman, Beattie, 2000). There are different systems that can be applied in the field of yield the executives; among them significant five are recorded as underneath: Changing costs of the merchandise and ventures: Adjusting the costs of the products and enterprises is the greatest instrument in the hands of the administration. The value influences request, in this way, the administration utilizes cost as the apparatus to advance the interest (Rouse, 2011). Controlling stock in a superior manner: Controlling of stock here and there gets appropriate, for instance, if there should be an occurrence of transient merchandise. The transient merchandise bought in high amounts in the expectation of appeal could causes overwhelming misfortunes. Period insightful examination of interest: In request to use the assets to the ideal level, the enterprises, for example, friendliness and aircrafts lead period shrewd investigation of interest. In light of this investigation, the periods are isolated as pinnacle period and lean period (Rouse, 2011). Market or item savvy examination of interest: The investigation of interest dependent available or item is additionally useful in putting the constrained assets to their ideal use. Bringing rewarding impetus approaches: This procedure is utilized to push the interest upside. According to this system, the organizations in the business, for example, neighborliness acquire motivator approaches for the staff so the heap of pinnacle season could be supported without numerous issues (Rouse, 2011). For the situation being broke down in this report, it could be seen that the interest is at amazing level as demonstrated by high inhabitance rate, yet the valuing needs alterations. Subsequently, the administration of the inn ought to follow the methodology of modifying the normal day by day rates. At present, the normal every day paces of the lodging are low to the point that RevPAR is slopping descending in spite of enlisting development in inhabitance. In this manner, with the intention to build RevPAR, the administration of the inn should amend ADR to upside. Further, so as to continue the climb in ADR, the administration may consider conveying some extra worth added administrations to the clients (Rouse, 2011). Correspondence with the Stakeholders So as to guarantee fruitful usage of the methodologies and plans it is important to convey them to the partners in a viable way. For this reason, initially it is urgent to distinguish the partners to be imparted in regard of a specific technique or plan effectively. For example, in the present case, if the income chief intends to modify the costs for the room lease, the key partners to be conveyed will be top administration, lower level administration, and the clients (Bourne, 2015). The correspondence inside the administration that top administration and lower level of the executives is the part if inward procedures while the correspondence with the clients can be accomplished through ad in a superior manner (Bourne, 2015). The income director should initially get the endorsement of the top administration before thinking about execution of the technique. Subsequently, for this reason, it is fitting that the income chief orchestrates a pre-educated gathering with the top administration. The income chief ought to reveal the raw numbers alongside investigation of the assessed advantages to the association from the execution of the system (Bourne, 2015). Subsequent to getting endorsement from the top administration, the income supervisor should convey the usage plan to the lower level administration. This correspondence can be made through a gathering or sending composed correspondence by and by to the lower level administrators. In this correspondence, the lower level staff ought to be made mindful of the progressions to be helped out through the methodology execution and their obligations and responsibility toward the equivalent (Bourne, 2015). Further, th

Hrm Essay Example | Topics and Well Written Essays - 500 words

Hrm - Essay Example There are different contrasts among administration and the executives; be that as it may, their greatest distinction is the means by which they get their supporters to do what they need. This has a significant effect in different parts of how they get things done. Managers’ power given to them by the associations they are utilized in and they have collaborators who work for them. The executives utilizes value-based strategy to have errands done. This implies the subordinates do what they are told in light of the fact that they anticipate something consequently, this is typically compensation. Directors carry on of inspiration that they will get paid subsequent to conveying. In this way they put center to their subordinate to come to the organizations’ desires. Then again pioneers don't have subordinates, except if in formal setting where they additionally hold the executives jobs. In ordinary conditions, pioneers have supporters who are roused by their activities (Daft, and Lane, 2005, P. 5). Authority necessitates that an individual intrigue others so much that they are prepared to quit doing what they are doing to tail them. It implies they are prepared to face challenges they would not have considered to take were it not for the impact of a specific individual (Bertocci, 2009, P. 6). Pioneers complete things through their solid moxy and they don't guarantee their supporters material prize; they convince them by promising them positive change. Thusly, administration is tied in with making beneficial outcome in people’s lives and pioneers can persuade individuals that they will turn out to be better individuals subsequent to following their authority. Authority center a ton of their regard for individuals they work with. Pioneers a re magnetic however they don't really have a noisy character they utilize a calm, real style of tending to individuals. They are additionally prepared to assume fault for different people’s botches and consistently offer credit to other people. Administration has numerous beneficial outcomes to

Cost Structure Block in Business Model Canvas

Cost Structure Block in Business Model Canvas COST STRUCTUREThis building block represents all the costs that a business can or will incur if it opts for a particular business model. 90% of new businesses fail in the first 3 years because they fail to understand their costs or what it will take to create the goods and services they have promised in their value propositions. At least three other building blocks are contributors to the cost structure block. One must evaluate the cost of creating and delivering the value proposition, creating revenue streams and focus on long-term customer relationships. All three of these blocks represent a financial investment into the business. However, when an entrepreneur has effectively figured out their key resources, key activities and key partnerships the aforementioned costs become easier to calculate. If you have a major cost stream which cannot be matched to a Key Activity, it needs to be given a closer examination. Either your Key Activities block is missing a vital activity or your co sts are being inflated by an activity which is unimportant and yet has still been included in the business model. It is important to note that cost can be a fundamental concern for some business model. One example is ‘no frills’ airlines like SouthWest which are completely focused on reducing costs.Key questions to askWhen doing a thorough analysis of your business model, it is imperative to ask the following questions when filling in the Cost Structure building block of the business model canvas;What are the fundamental costs derived from my business model?Which Key Resources represent a significant expense to the business?Which Key Activities represent a significant expense to the business?How do your Key activities drive costs?Are the above mentioned activities matched to the Value Propositions for your business?By exploring different permutations of your business model, do the costs remain fixed or become variable?Is your business more values driven or cost driven?TYPES OF B USINESSES BY COST STRUCTURECosts will always remain a major concern for all businesses. It is in fact the universal concern. However, some businesses make it an organizational mission to minimize costs as much as possible and all their strategies and tactics are derived from this one goal. Hence businesses can be categorized into two extremes based on the volume of goods produced; both ends of the spectrum are either cost driven or values driven. Realistically though, companies usually fall somewhere in the middle of this spectrum.Cost-drivenAs the name suggests, such a business model is utterly focused on reducing costs. This is essentially a race to the bottom. This obviously impacts the other building blocks. A business which is cost-driven focuses on creating a lean cost structure through offering cheaply priced value propositions, a high degree of automation, and outsourcing of costly functions. It is important to lower your prices based on internal costs and expenses rather th an in response to what the competition is doing. Industries prone to price wars experience this tragedy all the time. During the price war competitors will steadily undercut each other’s prices to attract the price sensitive customer. However, if your competition is able to manage its costs and create operational efficiencies, they will be able to sustain their business on the lower price and continue to attract customers. If your business fails to do so, you may end up arriving at a price you are stuck with, which is unrealistic considering your expenses.Ryanair is another example of a ‘no frills’ airline which provides a cheap solution to its customer segment for air travel by reducing costs incurred by in-flight meals or other amenities traditionally offered by major airlines. Such airlines have increased seats in their planes and have a limit on luggage size. However, the swift takeover of the market airlines like Ryanair have accomplished clearly show an unmet need that t hese airlines have fulfilled. Conversely, more expensive airlines have aircrafts which now spend more time on the ground than they do in the air.Values-drivenNot all companies drive their business based on costs. Some focus completely on the value they are providing to their customers, hence taking the value-driven approach. This strategy is characterized by complete focus on the creation and delivery of a high value, value proposition which is highly customized to the customer segment’s preferences. Luxury hotels opt for a values driven approach. The Hyatt prides itself on its customer services and amenities. They put a lot of effort into creating an experience which customers are willing to pay top dollar for. Employees of the hotel are encouraged to anticipate individual customer’s needs right down to greeting a repeat customer by name and providing them with a room with their preferences already in place.Another volume specific example is of the transistors used to amplify o r switch electronics signals called metal oxide semiconductor field effect transistors or MOSFETs. This is one of the most commonly used transistors in analog and digital circuits. The price per unit is 21 cents. If you buy 10, the price per unit becomes 19 cents and if you buy a hundred the price per unit falls even further to 17 cents. Hence this is a variable cost dependent entirely on the volume you are trying to produce which requires the MOSFETs. There is a price difference depending on how much you buy, leading to economies of scale.CHARACTERISTICS OF COST STRUCTURESCost structures have multiple characteristics. These are highlighted below;Fixed costsFixed costs are business expenses that remain the same regardless of the volume produced by the business. These costs are usually time bound such as monthly salaries or rent for office space and can also be referred to as overhead costs. Manufacturing businesses are typically characterized by high fixed costs due to the investmen ts required in renting the facilities and the equipment. However, it is important to note that fixed costs will not remain the same forever. Instead, they may change with time but will remain stable over a period of time. Hence these costs are also known as sunk costs for the relevant period of time.Decisions for costs are often related to management. Capital Expenditure or CAPEX are investments in the long-term, things that are bought and go on the balance sheet of the company and will be depreciated over the years.Variable costsVariable costs are costs which are heavily dependent on the volume of output a company produces. These are costs incurred when you produce a product. If you do not produce, you will have no variable costs. Similarly you may have delivery costs but if customers aren’t asking for delivery then this is a possible variable cost which you can avoid. These costs are therefore sensitive to changes in demand and supply and cannot be easily predicted. They increas e directly proportional to increases in labor and capital. Variable costs are represented by utility bills and raw materials used for production of the end product. The organization and execution of a music festival will typically be characterized by high variable costs.Another cost close to the management’s hearts and minds are Operational costs or OPEX. These are the costs associated with the day to day running of the company or the used up expenses. Hence a 3D printer is an example of an expense that falls in OPEX. Other OPEX related expenditures are purchase of raw materials, electricity bills and expenditure on maintenance of buildings and machinery. Companies often have different budgets for CAPEX and OPEX.Economies of scaleThe higher the volume, the lower the overall cost per unit. Economies of scale are a benefit enjoyed by most big companies with a high output quota. Essentially this is a cost advantage which big companies can enjoy due to their size, sheer quantity of ou tput or scale of operation. The reason costs fall with higher volumes is because higher volumes spread fixed costs more thinly making the cost per unit fall dramatically; hence the average cost per unit is reduced. Hence a bigger company will have a lower cost per unit output than a smaller company or a company with more facilities will have more of an advantage than one with fewer facilities. Not only do economies of scale help lower fixed costs, they may also help reduce variable costs by creating synergies and increasing efficiency.Bulk buying is a common indicator of mass production and automatically leads to economies of scale. Bulk buying often leads to lower prices. When you are buying in volume, you often have a stronger negotiating position and can create lower prices for your raw material. This is a tactic used most successfully by Walmart which uses bulk buying to negotiate much lower prices for the items in its stores. It is then able to transfer these savings to its cus tomers, providing them with lower than market prices for regular items.Economies of scopeEconomies of scope refer to the reduction of costs when a business invests in multiple markets or a larger scope of operations. The average cost of production is therefore expected to decrease if a company opts to increase the number of goods it produces. A company will have a structure in place already along with all the departments such as Marketing, Finance or HR operating, so the company can increase their scope and hence economize the entire structure.Economies of scope based on product diversification are only achieved if the different products have common processes or share the use of some resource. Hence spending on marketing the products or distribution channels may lessen per unit if both products require similar marketing efforts or use the same distribution channel. The uses of product bundling and family branding are also an example of firms trying to achieve economies of scale. How ever, where economies of scale are easy to achieve and measure, economies of scope present a bigger challenge when trying to measure themEconomies of scope have multiple advantages for the business. These are listed below;A great deal of flexibility in the design and mix of the productIncreased response rate and decreased response time to market driven changesProcesses are repeatable with a higher degree of control over their executionCosts are reduced because wastage is minimized in this particular business modelOrganizations can more accurately predict changes and cyclesSoftware and hardware utilized more efficientlyThere is less risk associated with a company which sells multiple products, or targets multiple markets or does both. Even if one product or market falters, the company will have alternatives to help tide it over while it readjusts strategy.Let’s take a look at the Coca Cola brand. Coca Cola already has a number of drinks launched in the brand other than Coke itself. Supposing we look into how Coke can diversify even further by launching an as yet unheard of drink such as Coca Cola Green Tea. Distribution of the different products under one company will use the established Distribution Channel leading to a major saving for the company.CASE STUDY: GOOGLE © Entrepreneurial Insights based on the concept of Alex OsterwalderIn this post we explore the ninth and final building block in the business model canvas series which is called the Cost Structure. We briefly look at what we mean by the cost structure of an organization before delving into the key question every entrepreneur must answer if he/ she is to do a thorough and unflinching analysis of their business models. We also  look at what kind of characteristics most cost structures display; cost structure have fixed and variable costs and they can have benefits of economies of scale or economies of scope.Read on to learn about 1) cost structure, 2) types of businesses, 3) characteristics of cost structures, and a 4) case study of Google.COST STRUCTUREThis building block represents all the costs that a business can or will incur if it opts for a particular business model. 90% of new businesses fail in the first 3 years because they fail to understand their costs or what it will take to create the goods and services they have promised in their value propositions. At least three other building blocks are contributors to the cost structure block. One must evaluate the cost of creating and delivering the value proposition, creating revenue streams and focus on long-term customer relationships. All three of these blocks represent a financial investment into the business. However, when an entrepreneur has effectively figured out their key resources, key activities and key partnerships the aforementioned costs become easier to calculate. If you have a major cost stream which cannot be matched to a Key Activity, it needs to be given a closer examination. Either your Key Activities block is missing a vital activity or your costs are being inflated by an activity which is unimportant and yet has still been included in the business model. It is important to note that cost can be a fundamental concern for some business model. One example is ‘no frills’ airlines like S outhWest which are completely focused on reducing costs.Key questions to askWhen doing a thorough analysis of your business model, it is imperative to ask the following questions when filling in the Cost Structure building block of the business model canvas;What are the fundamental costs derived from my business model?Which Key Resources represent a significant expense to the business?Which Key Activities represent a significant expense to the business?How do your Key activities drive costs?Are the above mentioned activities matched to the Value Propositions for your business?By exploring different permutations of your business model, do the costs remain fixed or become variable?Is your business more values driven or cost driven?TYPES OF BUSINESSES BY COST STRUCTURECosts will always remain a major concern for all businesses. It is in fact the universal concern. However, some businesses make it an organizational mission to minimize costs as much as possible and all their strategies a nd tactics are derived from this one goal. Hence businesses can be categorized into two extremes based on the volume of goods produced; both ends of the spectrum are either cost driven or values driven. Realistically though, companies usually fall somewhere in the middle of this spectrum.Cost-drivenAs the name suggests, such a business model is utterly focused on reducing costs. This is essentially a race to the bottom. This obviously impacts the other building blocks. A business which is cost-driven focuses on creating a lean cost structure through offering cheaply priced value propositions, a high degree of automation, and outsourcing of costly functions. It is important to lower your prices based on internal costs and expenses rather than in response to what the competition is doing. Industries prone to price wars experience this tragedy all the time. During the price war competitors will steadily undercut each other’s prices to attract the price sensitive customer. However, if your competition is able to manage its costs and create operational efficiencies, they will be able to sustain their business on the lower price and continue to attract customers. If your business fails to do so, you may end up arriving at a price you are stuck with, which is unrealistic considering your expenses.Ryanair is another example of a ‘no frills’ airline which provides a cheap solution to its customer segment for air travel by reducing costs incurred by in-flight meals or other amenities traditionally offered by major airlines. Such airlines have increased seats in their planes and have a limit on luggage size. However, the swift takeover of the market airlines like Ryanair have accomplished clearly show an unmet need that these airlines have fulfilled. Conversely, more expensive airlines have aircrafts which now spend more time on the ground than they do in the air.Values-drivenNot all companies drive their business based on costs. Some focus completely on the value they are providing to their customers, hence taking the value-driven approach. This strategy is characterized by complete focus on the creation and delivery of a high value, value proposition which is highly customized to the customer segment’s preferences. Luxury hotels opt for a values driven approach. The Hyatt prides itself on its customer services and amenities. They put a lot of effort into creating an experience which customers are willing to pay top dollar for. Employees of the hotel are encouraged to anticipate individual customer’s needs right down to greeting a repeat customer by name and providing them with a room with their preferences already in place.Another volume specific example is of the transistors used to amplify or switch electronics signals called metal oxide semiconductor field effect transistors or MOSFETs. This is one of the most commonly used transistors in analog and digital circuits. The price per unit is 21 cents. If you buy 10, the price per unit b ecomes 19 cents and if you buy a hundred the price per unit falls even further to 17 cents. Hence this is a variable cost dependent entirely on the volume you are trying to produce which requires the MOSFETs. There is a price difference depending on how much you buy, leading to economies of scale.CHARACTERISTICS OF COST STRUCTURESCost structures have multiple characteristics. These are highlighted below;Fixed costsFixed costs are business expenses that remain the same regardless of the volume produced by the business. These costs are usually time bound such as monthly salaries or rent for office space and can also be referred to as overhead costs. Manufacturing businesses are typically characterized by high fixed costs due to the investments required in renting the facilities and the equipment. However, it is important to note that fixed costs will not remain the same forever. Instead, they may change with time but will remain stable over a period of time. Hence these costs are also known as sunk costs for the relevant period of time.Decisions for costs are often related to management. Capital Expenditure or CAPEX are investments in the long-term, things that are bought and go on the balance sheet of the company and will be depreciated over the years.Variable costsVariable costs are costs which are heavily dependent on the volume of output a company produces. These are costs incurred when you produce a product. If you do not produce, you will have no variable costs. Similarly you may have delivery costs but if customers aren’t asking for delivery then this is a possible variable cost which you can avoid. These costs are therefore sensitive to changes in demand and supply and cannot be easily predicted. They increase directly proportional to increases in labor and capital. Variable costs are represented by utility bills and raw materials used for production of the end product. The organization and execution of a music festival will typically be characterized by high variable costs.Another cost close to the management’s hearts and minds are Operational costs or OPEX. These are the costs associated with the day to day running of the company or the used up expenses. Hence a 3D printer is an example of an expense that falls in OPEX. Other OPEX related expenditures are purchase of raw materials, electricity bills and expenditure on maintenance of buildings and machinery. Companies often have different budgets for CAPEX and OPEX.Economies of scaleThe higher the volume, the lower the overall cost per unit. Economies of scale are a benefit enjoyed by most big companies with a high output quota. Essentially this is a cost advantage which big companies can enjoy due to their size, sheer quantity of output or scale of operation. The reason costs fall with higher volumes is because higher volumes spread fixed costs more thinly making the cost per unit fall dramatically; hence the average cost per unit is reduced. Hence a bigger company will have a lower cost per unit output than a smaller company or a company with more facilities will have more of an advantage than one with fewer facilities. Not only do economies of scale help lower fixed costs, they may also help reduce variable costs by creating synergies and increasing efficiency.Bulk buying is a common indicator of mass production and automatically leads to economies of scale. Bulk buying often leads to lower prices. When you are buying in volume, you often have a stronger negotiating position and can create lower prices for your raw material. This is a tactic used most successfully by Walmart which uses bulk buying to negotiate much lower prices for the items in its stores. It is then able to transfer these savings to its customers, providing them with lower than market prices for regular items.Economies of scopeEconomies of scope refer to the reduction of costs when a business invests in multiple markets or a larger scope of operations. The average cost of production is therefore expected to decrease if a company opts to increase the number of goods it produces. A company will have a structure in place already along with all the departments such as Marketing, Finance or HR operating, so the company can increase their scope and hence economize the entire structure.Economies of scope based on product diversification are only achieved if the different products have common processes or share the use of some resource. Hence spending on marketing the products or distribution channels may lessen per unit if both products require similar marketing efforts or use the same distribution channel. The uses of product bundling and family branding are also an example of firms trying to achieve economies of scale. However, where economies of scale are easy to achieve and measure, economies of scope present a bigger challenge when trying to measure themEconomies of scope have multiple advantages for the business. These are listed below;A great deal of flexibilit y in the design and mix of the productIncreased response rate and decreased response time to market driven changesProcesses are repeatable with a higher degree of control over their executionCosts are reduced because wastage is minimized in this particular business modelOrganizations can more accurately predict changes and cyclesSoftware and hardware utilized more efficientlyThere is less risk associated with a company which sells multiple products, or targets multiple markets or does both. Even if one product or market falters, the company will have alternatives to help tide it over while it readjusts strategy.Let’s take a look at the Coca Cola brand. Coca Cola already has a number of drinks launched in the brand other than Coke itself. Supposing we look into how Coke can diversify even further by launching an as yet unheard of drink such as Coca Cola Green Tea. Distribution of the different products under one company will use the established Distribution Channel leading to a maj or saving for the company.CASE STUDY: GOOGLEWe all recognize Google as a multinational corporation which specializes in internet based products and services. It is one of the biggest internet companies in the world and has made an unprecedented success of its Search Engine Optimization products. It has dedicated fans worldwide and is the most preferred search engine on the internet.For the purpose of this article, we will take a look at Google’s Cost Structure in particular. Holistically, Google’s cost elements can be divided into four categories which are:RD,Data center operations,Traffic Acquisition, andSales and Marketing.Google invests deeply into its research and development with the purpose of bringing around improvement in existing products and constantly creating new and innovative solutions. This expenditure has helped Google maintain its position at the top despite the typical short-lived cycles of popularity of most internet based successes. This has led to economies of scope for Google because it has resulted in a great deal of product diversification such as Google’s entry into the mobile app market as well as its cloud sharing services.It is speculated that Google has almost a million servers globally and these servers help process around a billion search requests daily. Google has invested a great deal into these data centers and they represent a significant fixed cost for the company. Even the management of these servers’ represents a major cost for the company. However, due to the high volume of searches these centers process, they are able to increase economies of scale for the company by optimizing the servers search capacities.Traffic acquisition costs refer to the money given to the Google Network through its Adsense program or to websites which redirect users to Google or provide the Google Toolbar to their customers. All these players help Google in attracting more and more users to its products and services daily.Finally, Google invests in advertising and marketing to the wide customer base it is targeting. These costs also include the worldwide Sales Force that Google maintains which aims to sell its campaigns as well as its support team, available to handle customer complaints or hiccups.

Essay about Message of Family Heritage in Alice Walkers...

In Alice Walkers Everyday Use, the message about the preservation of heritage, specifically African-American heritage, is very clear. It is obvious that Walker believes that a persons heritage should be a living, dynamic part of the culture from which it arose and not a frozen timepiece only to be observed from a distance. There are two main approaches to heritage preservation depicted by the characters in this story. The narrator, a middle-aged African-American woman, and her youngest daughter Maggie, are in agreement with Walker. To them, their family heritage is everything around them that is involved in their everyday lives and everything that was involved in the lives of their ancestors. To Dee, the narrators oldest†¦show more content†¦However, Dee does not realize that. Apparently, she believes that by changing her name she is expressing solidarity with her African ancestors and rejecting the oppression implied by the taking on of American names by black slaves. Commenting on the way Dee is acting when they sit down to eat, her mother says, Everything delighted her. Even the fact that we still used the benches her daddy made for the table when we couldnt afford to buy chairs (411). Dee seems to be so interested in all of the little household items that her family still uses. When she sees the top to the butter churn that her Uncle whittled out of a tree, she wants to keep it and use it a centerpiece for her alcove table. Also, Dee says, Ill think of something artistic to do with the dasher (412). These items are a part of life for Maggie and her mother, but to Dee they are merely pieces for decoration. Interestingly enough, Maggie knows exactly whom in her family made the items that Dee is claiming for house decorations. She informs Dee that, Aunt Dee s first husband whittled that dashÂ…His name was Henry, but they called him Stash (412). The girls mother comments earlier in the story that [Maggie] knows shes not bright. Like good looks and money, quickness passed her by (409). However, unlike her older sister, she understands her family heritage and the importance of it in her life. The strongest example of Dees confusion and of Walkers beliefShow MoreRelatedThe Importance Of Family Heritage By Alice Walker1100 Words   |  5 PagesSydney Elliott ENGL 102-52 Dr. Irmer February 25, 2015 The Importance of Family Heritage One of the most inspiring authors in American history is Alice Walker. Walker is the youngest child in a sharecropper family that found her overly ambitious and highly competitive (Walker 609). This gave her a strong fighting attitude, which allowed her to make positive changes in an extremely racist society. Unfortunately, when she was young, Walker was accidentally shot in her right eye with a BB gun whileRead MoreEveryday Use By Alice Walker1725 Words   |  7 PagesSometimes people forget that heritage has to do with truly understanding their past. 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The narratorRead MoreThe Meaning And Maintenance Of Heritage In Alice Walkers Everyday Use974 Words   |  4 PagesThe Meaning and Maintenance of Heritage in Alice Walkers Everyday Use In Alice Walker’s â€Å"Everyday Use,† Walker uses, the symbolic significance of the quilt in this story to represent the heritage of this family as their heritage signifies where they came from and their traditions and cultural values. Walker demonstrates, that the importance of the quilt was to display the family’s history from generation to generation in hopes that each would understand and appreciate their familys background.Read MoreEssay about Autobiography in the Fiction of Alice Walker1077 Words   |  5 PagesWhen reading Alice Walker’s â€Å"The Color Purple† and â€Å"Everyday Use,† it is evident that she writes about her life through her use of allegory. Alice Walker uses the events of her childhood, her observation of the patriarchy in African American culture, and her rebellion against the society she lived in to recount her life through her stories. Alice Walker grew up in a loving household in the years towards the end of the Great Depression. Although her family was poor, they were rich in kindness andRead MoreAlice Walker s Everyday Use906 Words   |  4 PagesHidden Messages A Critique of Alice Walker’s â€Å"Everyday Use† Title Often authors use the titles of their writing to portray a part of the story that will eventually come up, or to give an underlying message about what’s going on in the story. In Alice Walker’s short story, Everyday Use, she uses a title that isn’t blatantly seen within the story, but is explained through different aspects of the dialogue and actions of the characters. 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It is obvious that Walker believes that a persons heritage should be a living, dynamic part of the culture from which it arose and not a frozen timepiece only to be observed from a distance. There are two main approaches to heritage preservation depicted by the characters in this story. The narrator, a middle-aged African-AmericanRead More Essay on Appearance vs Reality in Everyday Use and The Gilded Six-Bits1200 Words   |  5 PagesAppearance versus Reality in Alice Walkers and Zora Neale Hurstons Everyday Use and The Gilded Six-Bits  Ã‚     Ã‚  Ã‚   In The Gilded Six-Bits it appears that Otis D. Slemmons, the towns newest arrival, is rich, but by closer inspection by Joe Banks and Missie May, is found to be poor.   In Everyday Use, Maggie doesnt appear to be smart enough to honor and appreciate her heritage, but she and not Dee/Wangero is really preserving the family traditions as well as heritage.   Both The Gilded Six-BitsRead MoreCharacterization And Suspense In Alice Walkers Everyday Use987 Words   |  4 Pagesdetails can be used to build suspense when they are placed in the correct space. Characterization is a huge part of Walker’s piece, and the way in which she used imagery and past events builds suspense and provides only needed information. The suspense created by Walker creates a sense of uneasiness in the reader, and adds to the overall message of the story. Through foreshadowing, Alice Walker was able to build up her characters and her plot, while at the same time not giving away too much in formation

The Man Of The Crowd And Ligeia By Edgar Allen Poe

In Edgar Allen Poe’s, â€Å"The Man of the Crowd† and â€Å"Ligeia†, and Nathaniel Hawthorne’s, â€Å"Young Goodman Brown,† there is a constant presence of darkness throughout each text. The darkness displayed in these works allude to the ongoing theme of the ambiguity of sin. Both authors, Poe and Hawthorne, are considered to be Dark Romantics because they both center their works around the conflict between good and evil in every individual and showcase the dark side of human nature. In using elements from Dark Romanticism, Poe and Hawthorne create characters who struggle in their ability to find one’s own true self, resulting in character’s inability to accept and understand others because they are incapable of accepting sin, thus preventing the characters from then accepting themselves. In each of the stories, there lies an overwhelming distrust and lack of acceptance of others. Poe and Hawthorne begin each of their short stories by demonstrating each Narrator and Goodman Brown s inability to accept others. In Poe s The Man in the Crowd, this is seen by the Narrator s decision to follow the man which he cannot identify. The Narrator makes the decision to follow the man as it would allow him a good opportunity of examining his person, something he needs desperately, demonstrated in his infatuation with the man (Man in the Crowd 4). The Narrator s need for identification demonstrates his inability to accept others. In Poe s story Ligeia, the inability of acceptance ofShow MoreRelatedEssay on The Romantic Side of Edgar Allan Poe 1061 Words   |  5 Pagesfocus on the spiritual and aesthetic dimensions, and they use metaphors about organic growth. It was this era that inspired Edgar Allan Poe. Poe used the basics from Romanticism and put a darker spin on them, creating mystery and horror, seen in many works nowadays. Poe’s works are now widely popular and he is considered the best dark romantic (3). The w orks of Edgar Allan Poe reflect the romantic period by their creativity, little-known characters, and use of emotion. The Romantic Movement had itsRead MoreDifferent Colors Of Darkness By Nathaniel Hawthorne And Edgar Allen Poe995 Words   |  4 PagesCallie Shipley Mrs. Carroll Literature 2326 5 October 2014 Different Hues of Darkness At first glance, Nathaniel Hawthorne and Edgar Allen Poe may appear as though they are two birds of a feather. Their stories are often dark and dismal, and an enduring despair runs through the tales as a common thread. However, their inspirations originate from opposite ends of the spectrum. Hawthorne’s works are the offspring of legalistic Puritan values and beliefs; on the other hand, Poe’s stories reflect godlessnessRead MoreEdgar Allen Poe: His Life and His Work1764 Words   |  8 Pagesbed, we secretly make sure the closet doors are shut. Fear keeps our hearts pumping and endorphins rushing, for it is an emotion that reminds us of our mortality. How ironic it is to experience more life in our fascination with death. br brEdgar Allen Poe was a master of his craft, gifted with the talent of introducing each reader to his or her own subconscious fears. As the first writer to initiate horror, death and mystery into literature and poetry, he is blessed- or perhaps curs ed- with an

Satire in Huck Finn Free Essays

Huckleberry Finn Banned†¦or Not? Picture a river; not just any kind of river, the Mississippi River. Now picture yourself on a raft, but you’re not alone. There’re two other people with you, known as Huckleberry Finn and Jim. We will write a custom essay sample on Satire in Huck Finn or any similar topic only for you Order Now Adventures of Huckleberry Finn by Mark Twain is known widely as a satirical novel, but due to the satirical techniques Twain uses all throughout the book has caused it to become controversial on whether it should or should not be banned. Although Twain may appear to be racist in Huckleberry Finn, he actually wrote the book during the Reconstruction Era but based the book during Pre-Civil War to show the â€Å"good ole times† when the white southerners had slaves. Because Twain uses so many satirical techniques to help show readers that slavery is horrible, therefore Adventures of Huckleberry Finn should not be banned. Adventures of Huckleberry Finn was and still is considered a satirical novel because of its use of caricature, broadside, irony, and social satire (maybe even a little of parody). Mark Twain uses satire to prove his point on slavery. And in order to accomplish that, he has to use all sorts of satirical techniques. He uses broadside to show the racism in the south, There isn’t any book out there in the world that is known that Mark Twain doesn’t use satire. In Adventures of Huckleberry Finn, Huck tries to decide whether he should â€Å"commit a sin† to steal back a captured slave, and when he sees that he wants to steal Jim back, he tears up the note and says, â€Å"All right, then, I’ll go to h___†. 208). This is satirical because Twain is using irony to show that Huck thinks he is doing something horrible when he is actually doing a good deed. This is an example of a â€Å"good† satirical technique used in the book. However, there are plenty reasons why many schools have banned the book. For example, Twain uses broadside a lot causing libraries and schools to think of it as being racist making them banning the book. How to cite Satire in Huck Finn, Papers

Narendra Modi Essay Example

Narendra Modi Essay The Grand Illusion? There may be general consensus that the election in Gujarat is a no contest but the jury is still out on whether to credit Narendra Modis performance as Chief Minister or credit his massive and expensive propaganda machine, which his critics say has vastly inflated his rather limited successes. The Modi PR machine never sleeps, but in election time, goes into overdrive. There are his surreal, and much publicised 3D speeches, 29 Vikas Raths equipped with projectors, and 10 LED Raths, each with a 110 screen, which roam interior villages. His personal website has been given a spanking new election upgrade. As has his other social media platforms: Twitter, Facebook page and Youtube channel. The frequency of advertisements on TV, print and online have multiplied. And he also has his own TV channel: NaMo Gujarat, which was launched just before the elections. But who runs this for Mr Modi, and who pays for it? As with most things related to Mr Modi, the answers are not easy to come by. The Modi spin machine appears to use a mix of official, quasi-official and private players, with fragmented responsibilities, a structure that allows for grey areas of accounting and accountability. One such hub is run in a corporate tower in Ahmedabad at the offices of Maulik Bhagat, who runs a software and media firm. Mr Bhagat is only 27 years old, but his father is a BJP party headquarter fixture. Also part of this firm is Modi confidante Parindu Bhagat. Hes a new, but integral part of the Modi spin team, creating the concept for a series of popular kabbadi ads, meant to highlight the leaderless state of the Gujarat Congress. Mr Bhagat says he is also coordinating the chief ministers mammoth online and social media campaign. We will write a custom essay sample on Narendra Modi specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Narendra Modi specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Narendra Modi specifically for you FOR ONLY $16.38 $13.9/page Hire Writer But at the BJP headquarters, Rajeeka Kacheeria, who heads the partys IT cell, seems to suggest that she is coordinating a similar effort. The confusion over who runs Mr Modis online operations extends to questions about the costs as well. Mr Bhagat admits that while social media is low cost, running websites and producing ads and buying ad space comes at a cost. He says he doesnt have any idea of budgets. There is equal secrecy about the other big expense: the 3D projections. The opposition claims they were quoted figures of R 5-6 crore per projection. If that were true, by the end of the election Mr Modi would have spent R 20 crore on the 3D visuals alone. But Mr Mani Shankar, the director of the projections says that his lips are sealed and he cannot talk about the deal. The same opaqueness surrounds the running of NaMo TV. All that is visible is its content: a mix of speeches, talk shows and promotional features on the government. NaMo TV and the 3D projections are run by Parag Shah, an ex-member of the chief ministers office. Mr Shah refused to come on camera. But then details of government spending have always been hard to come by. The publicity department of the Information and Broadcasting Ministry, which Mr Modi controls, in its annual budget for 2011-12 has set aside R 1 crore for hiring a PR firm in Delhi to showcase the Gujarat growth story. But expenses of different campaigns are spread out amongst different ministries, making it impossible to pinpoint ownership or a complete figure. www. ndtv. com/article/assembly-polls/narendra-modi-the-grand-illusion-306076 1/3 7/28/13 Narendra Modi: The Grand Illusion? | NDTV. com RTI activists like Trupti Shah and Rohit Prajapati describe how they were repeatedly stonewalled when they tried to get details of spending on some of Mr Modis pet schemes. Their RTI application was also about the governments claim of providing employment to 65,000 people during the Swami Vivekananda Employment Week. She said in reality the figure was much less. They were also not provided with details on the travelling expenditure of the chief minister and other ministers. As an apparent bid to show transparency in election fundraising, Mr Modi launched Dhan Sangrah scheme early this year. Controversially this set targets for party officials and ministers to raise R 500 crore from the public. The party refused to comment on how much they raised, but reports suggested that the scheme had to be abandoned after rising allegations that it was a form of indirect extortion. Gujarat Congress spokesperson Ami Yagnik says that since the voters do matdaan, one cannot ask them for dhan-daan for the party. To this Jainarayan Vyas, spokesperson for the Gujarat government, said that the targets were not for individuals but for party units. He admits that while he managed to meet his targets, many fell short. In their defence, Mr Modis team claims the publicity machine is low-cost, because it is propelled by adoring volunteers. Like an army of online followers who spread his word and take on his critics. Ms Rajeeka says that about four to five thousand people are involved in retweeting Mr Modis tweets and spreading his word. She says that his online followers are genuine. And yet, soon after Mr Modis spin machine declared that he crossed a million followers on Twitter, the hype was somewhat deflated by a piece of news which said almost 40% of his followers were fake. Ms Rajeeka claims this is a deliberate conspiracy to defame Mr Modi. So are claims of Ms Modis vast support base as exaggerated as his achievements? The Congress rather feeble counter narrative to the Modi success narrative is ads that make a parody of a popular folk song and describe the Gujarat CM as a phenku or exaggerator. A greater worry for the BJP is the powerful Gujarati press, which seems to have done a U-turn on Mr Modi. In a rare interview, Shreyans Shah, editor of Gujarat Samachar, the states largest selling daily, says that he would give (Modi) all compliments for his marketing ability. He is an excellent marketing manager and marketing man and he can sell a fridge in the North Pole. We asked Jainarayan Vyas about the anomalies in the claims being made by the Gujarat chief ministers spin machine. For instance Planning Commission figures show that Gujarat comes sixth in Agriculture, fifth in literacy rate and 10th in sex ratio. Mr Vyas says that while its true that some states maybe growing faster than Gujarat, this could be because they operate from a lower base. Selling Mr Modi to Gujarat is one thing but how did the Modi PR machine sell him to the world? The origins of the Modi PR hardsell began in the immediate aftermath of the 2002 riots. The ad firm Grey Worldwide, which had come up with the concept of Vibrant Gujarat for the tourism department, was given a wider and more ambitious brief to convert Vibrant Gujarat into an investor summit. In the words of a PR professional, it was to create happy, happening images of Gujarat. Since 2003, the five editions of Vibrant Gujarat claimed to have brought in pledges of 800 billion dollars, which some claim is unrealistic. Former Hindu journalist Nina Vyas says the Vibrant Gujarat website claims they had over 800 billion dollars of MoU totally. For the same period of 10 years, the Reserve Bank says that Gujarat got only seven billion dollars. So, where is 800 billion dollars and where is seven billion dollars? And you can see the absurdity of the figure because the whole of China for the same period received a total of 600 billion dollars in foreign direct investment (FDI). I mean its an utter web of lies. When it is pointed out that Gujarat trails at number 5 as an FDI destination, Mr Vyas says it is unfair to only go by FDI figures and that other sectors have flourished, citing the example of auto majors Maruti and Tata. But the summits may have served their intended purpose. Manoj Ladwa , a UK-based lawyer and a Whitehall insider, is believed to have laid much of the groundwork that led to the UKs U-turn on Mr Modi. He spoke of how anti-Modi voices in the UK, like Curry King Lord Gulam Noon and Lord Meghnad Desai, changed their mind about the Gujarat chief minister. Some reports suggested that the change of heart maybe because of lobbying by firms like APCO Worldwide, the PR firm which replaced Grey in 2009. www. ndtv. com/article/assembly-polls/narendra-modi-the-grand-illusion-306076 2/3 7/28/13 Narendra Modi: The Grand Illusion? NDTV. com APCO refused to respond to specific questions on lobbying and instead claimed: Our mandate is limited to positioning Gujarat as an investment destination of choice and the Vibrant Gujarat Summit as a global business and knowledge hub. Mr Manoj says it is not lobbying but the Vibrant Gujarat success story which brought this turnaround. He says that the starting p oint was in fact the statement made by the British High Commissioner after meeting Mr Modi, where he said that engagement with Mr Modi would happen if it was in their national self-interest, which would primarily mean business interest. But when asked to name big investors that have set up shop after 10 years of hardsell, he says its not about the big ticket but whats happening on the ground with smaller players across different sectors. With victory in sight, any exercise to point out loopholes in Mr Modis claims might be academic. But is using a political PR blitz to paper over a controversial past and win elections good for the health of Indian democracy? (With inputs from Niha Masih)