Friday, December 27, 2019

Salario mínimo 2019 y 2020 federal, estados en EE.UU.

En Estados Unidos, el gobierno federal fija el monto del salario mà ­nimo, asà ­ como las categorà ­as de trabajadores que pueden cobrar una cantidad inferior a ese sueldo. Ademà ¡s, estados, ciudades y condados pueden exigir a las empresas que operan en sus territorios que paguen un sueldo mà ­nimo superior al federal. Y es que la empresa està ¡ obligada a pagar a sus trabajadores el salario mà ­nimo mà ¡s alto que aplique. Por ejemplo, si opera en una ciudad con salario mà ­nimo de $15,00/hora en un estado que fija un sueldo base de $12, la empresa debe pagar el de fijado por las ordenanzas de la ciudad, por ser mà ¡s alto. Salario mà ­nimo El gobierno federal fija el salario mà ­nimo por hora, y tambià ©n sus excepciones (trabajadores que reciben propinas, aprendices, etc.)29 estados han establecido un salario mà ­nimo superior al federal y que aplica obligatoriamente dentro de sus territorios.44 ciudades y condados han elevado los salarios mà ­nimos que aplican en sus territorios por encima de los mà ­nimos fijados por el gobierno federal y sus estados. Salario mà ­nimo federal en 2019 y 2020 en Estados Unidos En Estados Unidos el Congreso de EE.UU. fija un salario mà ­nimo segà ºn la Ley de Està ¡ndares Laborales Justos, conocida como FLSA por sus siglas en inglà ©s. El establecimiento de un sueldo bà ¡sico fue establecido por primera vez en 1938 durante el gobierno de Franklin Delano Roosevelt y se fijà ³ en 25 cà ©ntimos por hora. Ese mismo aà ±o se establecià ³ que, salvo excepciones fijadas por la ley, todo el trabajo que supere las 40 horas a la semana debe ser pagado a la razà ³n de una hora y media por hora extra. En la actualidad, y desde el 24 de julio de 2009 el salario mà ­nimo que fija el gobierno federal para todo el paà ­s es de $7,25 por hora, excepto para los trabajadores exentos, que pueden cobrar menos. Sin embargo, en cumplimiento de la Orden Ejecutiva 13658 los trabajadores que realicen labores relacionadas o en conexià ³n con un contrato federal deben cobrar un sueldo mà ­nimo superior. En 2019 es de $10,35 por hora y a partir del 1 de enero de 2020 sube a $10,80/hora. Ademà ¡s, comenzando el mismo dà ­a, los trabajadores que reciben propinas y està ¡n cubiertos o conectados con un contrato federal deben cobrar un mà ­nimo de salario en dinero de $7,55/hora. Salario mà ­nimo federal $7,25: salario mà ­nimo federal$7,55: Salario mà ­nimo para personas con contratos federales que reciben propinas$10,35 (2019) / $10,80 (2020): salario mà ­nimo para trabajadores con contratos federales o conectados al gobierno federal sin propinas Salario mà ­nimo en 2020 en los 50 estados de EE.UU., Distrito de Columbia (D.C.), Puerto Rico y otros territorios Segà ºn el Economic Policy Institute un total de 29 estados exigen el pago de un salario salario mà ­nimo superior al de $7,25/hora fijado por las leyes federales. Estos son los datos por hora desglosados por estados: Alabama:  $7,25  (salario mà ­nimo federal, no mà ­nimo estatal)Alaska:  $10,19Arizona:  $12,00Arkansas:  $10,00California:  $13,00  (empresas con 25 empleados o menos tienen un aà ±o para cumplir)Colorado:  $12,00Connecticut:  $11,00  ($12.00 Septiembre 2020)Delaware:  $9,25District of Columbia:  $15,00Florida:  $8,56Georgia:$7,25  ($5,15  si no està ¡ cubierto por reglas federales)Guam:  $8,75  (Marzo 2020). Este es un territorio de EE.UU.Hawaii: $10,10  Idaho:  $7,25Illinois:  $9,25  Indiana:  $7,25Iowa:  $7,25  Kansas:  $7,25Kentucky:  $7,25Louisiana:  $7,25  Maine: $12,00  Maryland:  $11,00  Massachusetts:  $12,75Michigan:  $9,65Minnesota:  $10,00, ($8,5 pequeà ±as empresas con menos de 50k en ventas anuales)Mississippi:  $7,25  (salario mà ­nimo federal, no mà ­nimo estatal)Missouri:  $9,45Montana:  $8,65 ($4,00 para negocios con rentas anuales brutas de $110.000 o menos)Nebraska:  $9,00Nevada: $9,00  (Julio 2020)  New Hampshire:  $7,25  New Jersey:  $11,00New Mexico:  $9,00New York:  $11,80North Carolina:  $7,25  North Dakota:  $7,25Ohio:  $8,70Oklahoma:  $7,25Oregon:  $12,00  (Julio 2020)Pennsylvania:  $7,25Puerto Rico: $6,55  ($7.25 Trabajadores cubiertos por la Ley Federal de Està ¡ndar Laboral Justo (FLSA))Rhode Island:  $10,50  South Carolina:  $7,25  South Dakota:  $9,30Tennessee:  $7,25  Texas:  $7,25Utah:  $7,25Vermont:$10,96U.S. Virgin  Islands: $10,50. Territorio de EE.UU.Virginia:  $7,25Washington:  $13,50West  Virginia:  $8,75Wisconsin:  $7,25Wyoming: $7,25 Washington tiene el salario mà ­nimo estatal mà ¡s alto en 2020: $13,50 Salario mà ­nimo 2019 en los  50 estados, DC y Puerto Rico   En ocasiones se hace referencia a incrementos segà ºn CPI. Esas son las iniciales en inglà ©s del Indice de Precio al Consumo y significa en este contexto que los salarios suben automà ¡ticamente en una fecha determinada segà ºn el incremento de ese à ­ndice. Alabama: $7,25Alaska:  $9,89. Se incrementa anualmente de acuerdo en el CPIArizona: $11,00Arkansas: $9,25California: $12,00. (Empresas con mà ¡s de 26 empleados. $11 para las que tienen menos)Carolina del Norte: $7,25Carolina del Sur: $7,25Colorado: $11,10Connecticut: $10,10Dakota del Norte: $7,25Dakota del Sur: $9,10Delaware: $9,25 con fecha 1 octubre 2019Distrito Columbia (Washington D.C.): $14,00Florida: $8,46Georgia: $7,25. Trabajadores excluidos protecciones federales: $5,15Guam: $8,25 (territorio de EE.UU.)Hawà ¡i: $10,10Idaho: $7,25Illinois: $8,25Indiana: $7,25Iowa: $7,25Kansas: $7,25Kentucky: $7,25. Trabajadores laborando para el estado, $10,10Luisiana: $7,25Maine: $11,00Maryland: $10,10Massachusetts: $12,00Michigan: $9,45Minnesota: grandes empresas, $9,86 y las pequeà ±as, $8,04Misisipi: $7,25Misuri: $8,60Montana: $8,50. $4 en empresas con menos de $110.000 ventas brutas.Nebraska: $9,00Nevada: $8,25Nuevo Hampshire: $7,25Nueva Jersey: $8,85Nuevo Mà ©xico: $7,50Nueva Yor k:  $11,10Ohio: $8,55Oklahoma: $7,25Oregà ³n: $11,25Pensilvania: $7,25Puerto Rico: $7,25 (trabajadores protegidos por Federal Fair Labor Standards Act)Rhode Island: $10,50Tennessee: $7,25Texas: $7,25Utah: $7,25Vermont: $10,78Islas Và ­rgenes: $10,50 (territorio de EE.UU.).Virginia: $7,25Virginia Occidental: $8,75Washington: $12,00Wisconsin: $7,25Wyoming: $7,25 ($5,15, si no aplican regulaciones federales) Condados y ciudades con salarios mà ­nimos: 2019 y 2020 Segà ºn el Economic Policy Institute, en Estados Unidos 44 condados y municipios tienen salarios mà ­nimos superiores a los exigidos por las leyes federales o por las del estado en el que se encuentran. Son los siguientes: Alameda (CA) 2019: $13,50A partir 1 julio 2020: $15,00 Albuquerque (NM) $9.20. Menor para cuidadores Belmont (CA) 2019: $13,502020: $15 Berkeley (CA) 2019: $15,59A partir 1 julio de 2020: $15,59 mà ¡s CPI Bernalillo County (NM) 2019: $9,052020: $9,20 Birmingham (AL) $10,10, pero no aplica. Pendiente resolucià ³n en corte. Chicago (IL) 2019: $13,00A partir 1 julio 2020: $13,00 mà ¡s incremento CPI Cook County (IL) 2919: $12,001 julio 2020: $13,00 Cupertino (CA) 2019: $15,002020: $15,35 El Cerrito (CA) 2019: $15,002020: $15,37 Emeryville (CA) $16,20, con situacià ³n de pausa para restaurantes pequeà ±os e independientes. Flagstaff (AZ) 2019: $11,002020: $12,00 Fremont (CA) 2019, empresas con 26 empleados o mà ¡s: $13,50A partir 1 julio 2020, empresas con 25 trabajadores o menos: $13,50. Empresas con mà ¡s: $15,00. Las Cruces (NM) 2019: $10,102020: $10,25 Los Altos (CA) 2019: $15,002020: $15,40 Los Angeles City (CA) 2019: $13,25 para empresas con 25 trabajadores o menos y $14,25, con 26 trabajadores o mà ¡sA partir del 1 de julio de 2020, empresas con 25 trabajadores o menos: $14,25 y con mà ¡s: $15,00 Los Angeles County (CA) Lo mismo que en Los Angeles City. Malibu (CA) 2019: $14,25.A partir 1 julio 2020: $15,00 Milpitas (CA) 2019: $15,002020: incrementarà ¡ el CPI cada 1 de julio. Minneapolis (MN) 2019: $8,04 pequeà ±as empresas, $9,86 empresas grandes2020: $10,00 grandes empresas y $8,15 para pequeà ±as. Montgomery County (MD) 2019: $12,50 empresas con 50 empleados o menos, $13,00 empresas con mà ¡s.A partir del 1 de julio de 2020, pequeà ±as empresas: $13,00, medianas empresas: $13,25 y empresas grandes: $14,00. Mountainview (CA) 2019: $15,65.2020: $16,05 Nassau, Suffolk y Westchester counties (NY) 2019: $12,002020: $13,00 Nueva York Ciudad (NY) 2019: $15,00 empresas de 11 trabajadores o mà ¡s, $13,50 para el resto.2020: $15,00 para todas Resto estado Nueva York 2019: $11,10.2020: $11,80. Oakland (CA) 2019: $14,25A partir 1 julio 2020: $15,00 Palo Alto (CA) 2019: $15,002020: $15,40 Pasadena (CA) 2019: $13,25 empresas pequeà ±as y $14,25 para el restoA partir 1 julio 2020: $14,25 para pequeà ±as empresas y $15,00 para las grandes. Portland Metro (OR) 2019: $12,50A partir 1 julio 2020: $13,25. Portland (ME) $11,11 Prince Georges Country (MD) $11,50 Richmond (CA) $15,00 San Diego (CA) 2019: $12,002020: $13,00 San Francisco (CA) 2019: $15,591 de julio de 2020 incrementarà ¡ segà ºn el CPI. Santa Fe (AZ) 2019: $11,80.2020: se incrementa con CPI Santa Monica (CA) 2019: $14,25 empresas de menos de 26 trabajadores, $13, 25 empresas con mà ¡s. Trabajadores de hoteles, mismo salario que en Los Angeles.1 de julio 2020: $15,00. Empresas con menos de 25 trabajadores y ONGs tiene un aà ±o mà ¡s para ajustarse a esa cifra. Seatac (WA) 2019: $16,09.2020: $16,34 Seattle (WA) 2019: $16,00 para empresas de 501 trabajadores o mà ¡s. $15,00 para empresas mà ¡s pequeà ±as para trabajadores sin beneficios mà ©dicos ni propinas. $12,00 para el resto.2020. $16,00 para grandes empresas, $15,75 para resto sin beneficios mà ©dicos ni propinas y $13,50 para resto. Sunnyvale (CA) 2019: $15,652020: $16,05 Tacoma (WA) 2019: $12,35.2020: ajuste de acuerdo al incremento del CPI. Cabe destacar que frecuentemente quedan excluidos de esos salarios mà ­nimos los trabajadores que reciben propinas o trabajan en el sector de la comida rà ¡pida. Asimismo, cabe resaltar que la mayorà ­a de las ciudades y condados que incrementan sus salarios mà ­nimos lo hacen el primer dà ­a del aà ±o. Cuando no es asà ­, se especifica que el cambio se produce a partir del 1 de julio, cuando lo realizan muchas entidades. Sin embargo, hay excepciones. Por ejemplo, Flagstaff cambia en marzo y Nueva York el 31 de diciembre. Finalmente, algunas ciudades y condados unen el monto del incremento de su salario mà ­nimo al Indice de Precios al Consumo, conocido por sus siglas en inglà ©s CPI, que fija todos los aà ±os el Bureau de Estadà ­sticas de Trabajo. Seatac es la ciudad con salario mà ­nimo mà ¡s alto en 2020: $16,35/hora. Empresas con salario mà ­nimo Algunas empresas han establecido salario mà ­nimo por hora para sus trabajadores, por ejemplo: Amazon: $15,00Bank of America: $17,00Cotsco: $15,50Ben Jerrys: $16,92JP Morgan Chase: $15,00. Para trabajadores en Chicago, Detroit y Wilmington: $16,50. Para trabajadores en NYC y San Francisco: $18.Facebook: $15, aumentando a $18 en à ¡reas caras como Washington D.C., Nueva York o San Francisco y pagando a sus empleados en la sede de Seattle un mà ­nimo de $18,00/hora.Whole Food Markets: $15,00Huntington National Bank: $18Walmart: $11,00Target: fijado en $15 para final de 2020 Los cruceros suelen pagar salarios por encima del salario mà ­nimo, tanto a trabajadores estadounidenses como a extranjeros con visa C1/D. Excepciones a la regla general del salario mà ­nimo Leyes federales establecen las situaciones en las que se permite pagar al trabajador  un sueldo inferior al salario mà ­nimo federal. Por ejemplo, empleos con propinas (tips). Otra excepcià ³n a las leyes del salario mà ­nimo son los jà ³venes menores de 20 aà ±os. Durante las primeras 90 horas trabajadas en un empleo el salario mà ­nimo es de $4,25 por hora. Tampoco aplica el mà ­nimo federal a estudiantes a tiempo completo, incluidos los internacionales,  que durante sus estudios trabajan para una universidad, college, tienda o en el sector servicios dentro del Full-Student Program. Cobran el 85 por ciento del salario mà ­nimo. Finalmente, tambià ©n està ¡n excluidos: aprendices, que deben cobrar, al menos, el 75 por ciento del salario mà ­nimoempleados con ciertas discapacidades  (disabilities)babysitter en situaciones de horas sueltasacompaà ±antes de personas ancianasempleados en granjas pequeà ±asrepartidores de perià ³dicosempleados de ferias y atraccionestrabajadores en el sector de la pesca Sueldo bà ¡sico federal y por estados de los meseros que cobran propinas Segà ºn la ley federal, el sueldo bà ¡sico de los meseros que cobran propinas es $2,13 por hora. Sin embargo, si entre lo que cobran por propinas y salario no llega a $7,25 por hora en una semana, el empresario deberà ¡ compensar al trabajador por la diferencia. Por ejemplo, si un dà ­a hay muy poco trabajo porque hay una nevada muy grande y a consecuencia de ello un mesero atiende en un turno de 8 horas solamente una mesa y recibe una propina de $10 en toda la noche, debe hacerse un cà ¡lculo para ese turno y el patrà ³n debe aportar dinero hasta completar el mà ­nimo por hora para ese turno. Ademà ¡s, los que realizan trabajos que reciben propinas y que està ¡n relacionados con contratos federales deben cobrar en efectivo el salario mà ­nimo de $7,55/hora en 2020. Asimismo, hay estados que establecen su propio mà ­nimo para trabajadores con propinas –tipped minimum wage, en inglà ©s. Por ejemplo: California: Menos de 25 empleados: $11Mà ¡s de 25 empleados: $12 Colorado: Salario mà ­nimo: $8,08 para un mà ­nimo de $11,20/hora incluyendo propinas Florida Salario mà ­nimo pagado: $5,44 para un mà ­nimo de $8,46/hora, incluidas propinas. Illinois Salario mà ­nimo pagado: $4,95, para un mà ­nimo de $8,25 incluyendo propinas Nueva Jersey Salario mà ­nimo pagado: $2,63 para un mà ­nimo de $10,00/hora incluyendo propinas Nueva York En la industria de la comida rà ¡pida, los trabajadores deben ser pagados en 2020 $15 la hora en NYC y $13,75 en el resto del estado. Texas y Virginia Salario mà ­nimo pagado: $2,13, para un mà ­nimo con propinas de $7,25/hora Segà ºn una sentencia de la Corte Suprema de 1942 y una modificacià ³n de la Ley de Està ¡ndares Laborales de 2012, todas las propinas pertenecen al trabajador que las recibe, no estando obligado a compartirlas ni con otros empleados ni con el patrà ³n. Por otro lado, debe pagarse impuestos por las propinas y el empleador està ¡ obligado a reportarlas en el W-2, para ello el empleado debe haber completado el formulario I-9 para trabajar. La empresa debe, asimismo, colaborar en el pago de impuestos FICA (Medicare y Seguro Social). Quà © hacer si la empresa no paga el salario mà ­nimo Se puede llamar al 1-866-487-9243 o contactar con la pà ¡gina de la agencia del gobierno federal encargada de implementar estas leyes.   Este servicio es confidencial y gratuito. Pueden utilizarlo no sà ³lo los trabajadores legales sino tambià ©n los indocumentados. En todo caso, teniendo en cuenta la situacià ³n delicada actual de los migrantes en esa situacià ³n migratoria es aconsejable contactar con un abogado o con una asociacià ³n de apoyo a migrantes con conocimiento de las leyes laborales.  ¿Es suficiente el salario mà ­nimo para vivir en EE.UU.? No hay una à ºnica respuesta ya que depende, entre otros factores, del tamaà ±o del hogar familiar, de cuà ¡ntos sueldos ingresan, de si hay personas enfermas, de si se tiene opcià ³n a recibir seguro mà ©dico en el trabajo y, tambià ©n, cuà ¡n asequible es la ciudad en la que se reside. Muchos de estos trabajadores, a pesar de trabajar a tiempo completo, necesitan apoyarse en beneficios sociales como, por ejemplo, Medicaid, un programa de asistencia mà ©dica, CHIP para nià ±os, cupones de alimentos, o los voucher de la Seccià ³n 8 de ayuda para el pago del alquiler. Los migrantes, aà ºn cuando sean residentes permanentes legales, deben asegurase de que cumplen todos los requisitos legales para, en primer lugar, recibir beneficios pà ºblicos. Efectos migratorios de cobrar salario mà ­nimo: la carga pà ºblica Ganar el salario mà ­nimo en EE.UU. podrà ­a ser problemà ¡tico para pedir los papeles de la residencia para familiares segà ºn las nuevas reglas de carga pà ºblica que quiere aplicar el gobierno del presidente Donald Trump. Esta nueva medida deberà ­a haber entrado en vigor el 15 de octubre de 2019, sin embargo, cortes federales han paralizado su aplicacià ³n dentro de EE.UU. por parte de USCIS y DHS a la espera de otras resoluciones judiciales, que serà ¡n las que determinen si se pueden aplicar las nuevas normas de carga pà ºblica y quà © beneficios pà ºblicos pueden afectar a la obtencià ³n de la residencia. Sin embargo, esta regla de carga pà ºblica sà ­ puede ser aplicada por el Departamento de Estado en sus consulados y embajadas desde 15 de octubre de 2019 cuando, entre otras labores, tramitan las visas de inmigrante. Fuentes: â€Å"Establishing a Minimum Wage for Contractors, Notice of Rate Change in Effect as of January 1, 2020.†Ã‚  Federal Register, 19 Sept. 2019, https://www.federalregister.gov/documents/2019/09/19/2019-19673/establishing-a-minimum-wage-for-contractors-notice-of-rate-change-in-effect-as-of-january-1-2020.â€Å"Minimum Wage.†Ã‚  U.S. Department of Labor, https://www.dol.gov/general/topic/wages/minimumwage.â€Å"The Free Online Labor Law Resource.†Ã‚  Federal and State Minimum Wage Rates for 2019, https://www.minimum-wage.org/ Este es un artà ­culo informativo. No es asesorà ­a legal.

Thursday, December 19, 2019

Racisim in the World We Live In - 753 Words

What is racism in the world that we live in? Racism as we know it dates back to ancient times. In the society that we live in today racism is defined as a person that believes a certain human race is superior to any or all others. When someone treats another race with inferiority it causes people to be unequal. Whether it is the difference in skin color or culture racism has affected the world in thousands of ways and for thousands of years. Our ancestors have gone through the question of what makes one man believe that he is better than another. It is troubling that even today we still deal with this problem. The use of racism needs to be abolished from the media representation, government discrimination, and education. These solutions can solve some of society’s dilemma with racism. To begin with the media representation of racism plays a significant role in society. The world we live in today is influenced by what the media shows and portrays. It reinforces people’s values and norms. It also perpetuates certain ways of perceiving the world and people within this world. When the media only shows you the negative that is all people ever see. It’s in the movies and even on the news. The media encourages influencing the audience’s stereotype on different groups of people. If you look at minorities in the media today they are always associated with words like criminal, rapist, and drug dealer. The world will hear and see these negative connotations and it will change theirShow MoreRelatedThe Green Parties Primary Goal929 Words   |  4 Pagesresisting attacks to protect us from extreme weather events, protect the natural world, and end animal testing which harms the natural world. They will provide and dispose waste safely for a better environment and use limited resources. This is where the party platform takes in place. 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On this day the lives of every American changed forever. We witnessed an terrorist attack unforeseen ever before, and the aftermath would change the country and the world forever. Despite only being 14 years, 9/11 has changed our lives and will continue to do so for the foreseeable future. Such an event definitely ranks itself as a turning point for American history. On the morning of September 11, 2001, 19 hijackers tookRead MoreEssay on How Popular Culture Affects Race1347 Words   |  6 Pagesreflected in the streotypes presented by the visual media. i strongly believe in the George Gebners scientific examintaiton of televison that how we perceive ourselves and how we view those around us are affected by what we see on television. 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It’s situations like this that make me wonder is it visual identity that we use as African Americans to access a person’sRead MoreComics, The X-Men, and Popular Culture Essay4876 Words   |  20 Pagessociety, American ideology for instance, as to what is acceptable â€Å"good† reading material. Many comic book reader s become addicted to their favorite titles and the heroes involved yearning to be immersed further into whatever fantastical world these characters live in. The theory of Leavisism can be used to describe how the X-Men have been advertised and commercially marketed specifically in each decade since the team’s inception. In 1963, Stan Lee and Marvel Comics introduced issue number one of

Wednesday, December 11, 2019

Hemp Essay Research Paper Hemp Hawaii free essay sample

Hemp Essay, Research Paper Hemp: Hawaii fs Future Industry Hawaii fs economic system is based chiefly on the tourer industry. But, there is another industry that can make even better, the hemp industry. Hemp is a tall, aggressive works, or scientifically, the Cannabis sativa L. Many people confuse hemp with the drug-type of this works. They are both from the Cannabaceae household, but are really different from each other. Many people believe that hemp may hold been the first cultivated works. For 1000s of old ages, it has been used worldwide. The earliest known woven cloth was of hemp, which dates back to the eight millenary ( 8,000-7,000 b. c. ) . Majority of all canvass, apparels, collapsible shelters, carpets, curtains, towels, paper, rope, string, art canvas, pigments and varnishes, and illuming oil were all made from hemp. It is one of the strongest and longest fibres in the universe. But one time William Randolph Hearst, proprietor of the largest newspaper concatenation in the US, published articles that the drug-type hemp was linked with offense, they renamed it # 8220 ; marijuana # 8221 ; . We will write a custom essay sample on Hemp Essay Research Paper Hemp Hawaii or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page This name has been stuck with all the types of this works, including industrial hemp. Over the past 50 to sixty old ages, it was made illegal and seen as immorality. Hemp is divided into fiber-type workss and drug-type workss based on their THC ( THC ) content. THC is the chemical that produces hallucinogenic effects. Hemp may incorporate a degree up to merely 0.3 % THC which is uneffective in bring forthing any type of hallucination. The THC degrees of the drug-type ( marijuana or drug hemp ) that people smoke are typically between 3 % and 10 % . Hemp can be grown in all climatic zones in America, including Hawaii. There wouldn foot be any competition for productive farm land with nutrient harvests because it can be grown in rotary motion with the nutrient harvests or on fringy farm land where nutrient production is non profitable. Decreases in sugar cane and pineapple land area have left agricultural lands available for cultivation of new harvests, such as industrial hemp. The cultivation of hemp airss few jobs with works diseases and there have been merely a few studies on soil-borne diseases caused by it. Probes on the consequence of fibre hemp were tested on three major dirt pathogens. They were all suppressed with hemp, and were found that hemp in a harvest rotary motion might better dirt wellness. This shows that hemp can be used as a rotary motion harvest and assist extinguish or stamp down these pathogens for other harvests. Another environmental benefit hemp has to offer is that it fs non necessary to hold to weedkillers or pesticides. Fungicides haven ft been found effectual and other biocides aren foot needed. Hemp is besides a really effectual weed suppressor. It grows really rapidly and dumbly, about four metres in three months, so it blocks out sunlight to any other weeds seeking to turn. Hemp is besides a really successful eliminator of C dioxide. This provides obvious benefits for the nursery consequence. Every ton of hemp grown and used removes 1.5 dozenss of C dioxide. Hemp is considered to be one of the best biomass merchandises in the universe. It fs a significant renewable resource that can be used as a fuel for electric power and other energy merchandises. By the twelvemonth 2010, it is predicted that over 13,000 megawatts of biomass power could be installed. The economic activity associated with biomass presently supports about 66,000 occupations in the United States. That fs a batch of occupations that more people can take advantage of. Hemp is better than coal and oil because they are pollutants and release gases into the ambiance. Biomass fuels don ft produce any sulfur emanations, they recycle atmospheric Cs, minimise planetary heating impacts, and they help to alleviate acid rain. It can besides be used to obtain alternate fuels from new engineering, which reduces our dependance and export of money out of the local economic system. Economically, hemp produces fantastic merchandises. It can do edifice stuffs and all classs of paper or cloth. Hemp seeds can be used as a beginning of oil. But in order to import hemp seeds into the U. S. , it has to be sterilized outside of the state. Anything that can be made out of wood or plastic can be made from hemp. As a cloth, it fs softer, more insulating, absorptive, and longer enduring than cotton. One acre of hemp produces the same sum of paper as 4.1 estates of trees do. It is all natural and biodegradable. And can besides be safely bleached. The first paper really made from hemp, every bit good as the first bill of exchange of the Declaration of Independence and the U. S. Constitution. The importance of the hemp industry could intend so much to break the province of Hawaii. Not merely is industrial hemp an environmental benefit, but it would besides break our economic system. Because hemp has so many environmental benefits, we wouldn ft have to pass so much seeking to repair anything and nature degree Fahrenheit jobs. Industrial hemp allows us to salvage money and spend it other of import issues necessitating aid. Traveling into this industry might look as if we are headed towards a life style of drugs, but it is all really incorrect. The lone manner any human being could acquire # 8220 ; high # 8221 ; off of industrial hemp, would be to smoke a joint the size of a telephone pole in a individual scene, which is humanly impossible. The House of Representatives of the Twentieth Legislature of the State of Hawaii, Regular Session of 1999, the Department of Business, the Economic Development, and Tourism has requested the turning of industrial hemp in Hawaii for biomass energy production. The authorities has proposed this to the Department of Business and the Department of Agriculture, finishing the research of turning workss. Hawaii is acquiring a start that might merely alter our economic system and better the status of the universe. We now need to recognize that hemp is non traveling to destroy the image of Hawaii, but merely better it with an earth-friendly industry. By turning hemp for economic benefits, the Earth will be thanking us.

Tuesday, December 3, 2019

Timkens Case Study Market Entry at Romania Essay Example

Timkens Case Study Market Entry at Romania Essay TIMKEN CASE STUDY1Doan Thi Thu Ha Timken was known as a leading manufacturer of highly engineered bearings and alloy steels and famous for its tapered roller bearings with over 200 types in more than 30,000 sizes. It was also the market leader in mechanical seamless steel tubing and shipped more than one million tons of premium alloy steels annually. Timken was located in Canton, Ohio. However, its operation was not limited in Ohio but in twenty-five countries and employed over 20,000 people worldwide. In the early 1990s, Timken intended to take the U. S model to Europe with some customization for the local market and focused on case-carburized tapered roller bearings. In early 1997, Timken reviewed its strategy with specific aim for the European market: to gain market share, to lower its cost structure and to increase production capacity. It also addressed three segments: small bearings for automotive and light industrial markets, medium bearings for construction equipment and large bearings for process and other heavy industries. As Timken Polska fulfilled the small bearings plant requirement and Gnutti Carlo S. p. A. in Italy provided a medium-sized bearings plant, Timken had to search for a large bearings plant in Central Europe that would provide the company with low-cost manufacturing capacity. Rulmenti Grei in Romania could be the potential choice for Timken ¶s large bearings plant. Rulmenti Grei offered valuable assets from market share, equipments to skill engineers to help Timken to crack the European industrial bearings market. This acquisition would be consistent with Timken ¶s strategy of gaining market share, improving cost structure and increasing production capacity. We will write a custom essay sample on Timkens Case Study Market Entry at Romania specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Timkens Case Study Market Entry at Romania specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Timkens Case Study Market Entry at Romania specifically for you FOR ONLY $16.38 $13.9/page Hire Writer However, Timken might face the difficulties of Romania ¶s political instability and the numerous operational challenges of integrating the plant into Timken ¶s global organization. Furthermore, as Rulmenti Grei produced a variety of bearing types, this investment could lead to the change in its century-corporate culture of focusing on tapered roller bearings. Timken also had to consider the acquisition cost and the additional investment they would undertake for plant upgrades and expansion. The merits of an acquisition of Rulmenti Grei and the risks for Timken According to the ranking system of Timken, Rulmenti Grei seemed to have a good assessment First, Rulmenti Grei had been a big manufacturer producing over 1,200 types and sizes of bearings including tapered, cylindrical, spherical, and ball bearings. Although tapered roller bearings currently represented only 18 percent of production, this proportion could be increased by retooling its equipment. Second, Timken was familiar with much of Grei’s equipment as It was made by an American machine builder. Third, the employees of Rulmenti Grei seemed to have high education and many of them had technical degrees. Furthermore, many professors spoke English fluently. Therefore, Timken could easily bring it up to US standards. Skilled talent is hard to find and difficult to retain. Local companies usually take advantages of this as they understand the culture, the behaviors and the expectation of local people to build up a strategy to attract talents (Bhattacharya, 2008). Thus, acquisition a company with impressive workforce could strengthen Timken’s competitive ability. Rulmenti Grei was considered as the good candidate for the company’s three-plant plan. It could offer Timken an opportunity to establish a stronger competitive position in the European industrial bearings market and to lower manufacturing costs across its heavy bearings business. It is said that local companies often win in the price war while the organizational processes and cost structures of many global companies make it difficult for them to sell products and services at optimal price points to satisfy both global, glocal, local and bottom customers (Khanna, 2006). Therefore, having effective cost structure would be the great advantage for Timken to become more competitive not only in Europe but also globally. Although Timken had several plants in Europe, their operation was less effective than those of competitors. With this acquisition, Timken could break into and dominate the European market and use it as the leverage to be the leader in bearing industry. However, the investment was not without risks. There are four types of risks in international business called cross-culture risk, country risk, currency risk and commercial risk. Cross-cultural risk refers to a situation or event where a cultural miscommunication puts some human value at stake. Country risk describes the potentially adverse effects on company operations and rofitability holes by developments in the political, legal, and economic environment in a foreign country. Currency risk is the risk of adverse unexpected fluctuations in exchange rates. Commercial risk refers to potential loss or failure from poorly developed or executed business strategies, tactics, or procedures (Boter Wincent, 2010). Investment in Rulmenti Grei , Timken might face the salient risks of political and economic instability. Romania’s economic growth was slower, inflation was higher, and the labor force was more volatile. Furthermore, there might be a risk of re-nationalization. It is said that economic risk analysis tells corporate leaders the ability of a particular country to pay its debt while political risk analysis tells them whether that country will pay its debt. Political risk measures the stability of individual countries through the combination of four factors: government, society, security, and the economy (Bremmer, 2005). However, the most important risks Timken faced were operations. Besides, the plant was struggling and lack a broad sales base outside Central Europe. Moreover, it sold most of its bearings to Romanian and Russian steel mills, whose business was in decline. An inability to make change rapidly could result in the need for Timken corporate to subsidize the Romanian operations for some time. Operating and organizational issues In order to gain broad acceptance of its product outside Central Europe, Timken need both technical and marketing expertise. First, Timken needed to improve the product to Western European standards. It would be difficult as steel quality was low, and the equipment was in disrepair. Even FLT where the technology and processes were relatively simple as it manufactured only tapered roller bearings, it had taken eighteen months to bring product quality up to Timken standards. Therefore, it would be impossible for Rulmenti Grei which had over 1,000 part numbers for four different bearing types to achieve Timken-level quality in six month. Further more, if Timken wanted to increase the proportion of tapered roller bearings production, new heat treatment equipment and workforce education in tapered roller manufacturing skills would be required. Besides, Timken needed to improve not only technology, technology but also raw materials to produce case-carburized bearings for industrial market with total additional investment of at least $8 million which was not a small figure. To bring Rulmenti Grei up to Timken’s quality was difficult but to convince potential customers that the product was of high quality and met their standards was also a big concern due to the fact that Western companies generally matched Central European manufactured bearings with poor quality. Applying Timken brand on these bearings producing to Western standards could help to gain the customers’ confidence. However, if the quality was not well controlled, it could damage Timken’s image and lead to a huge loss. Another issue was about what Timken would decide with other bearings that Rulmenti Grei was producing. If Timken decided to continue to produce these types of bearing, it might need to consider how to sell them and how to change its century-old corporate culture of producing tapered roller bearings. If Timken continued to focus only on tapered roller bearings, investment in equipment, technology and human resource must be high and the investment project would take a long time. Conditions to secure in framing the proposal and what the Romanian Government looked for in a winning proposal The Romanian government assessed the proposals based on the scoring worksheet including the acquisition price, future investment, and environmental remediation. Bidders were asked to nominate their acquisition price for 50. 99% of Rulmenti Grei which was for sale from a minimum of 183. 72 billion lei. In addition, bidders were required to indicate how much additional investment they would undertake for plant upgrades and expansion, and also what they would spend on environmental remediation. Romanian Government also expected bidders to put forward other more qualitative dimensions which could be influential in the final decision. Understanding the expectation of Romanian Government to satisfy them was the key element to win the acquisition. When a government was calling for an investment, of course they wanted an outstanding investor which had ability to drive the company successfully with a long-term investment not only for that company but also for society. Therefore, Timken would mention clearly in the proposal about its competitive strength and future development ability. In addition, Timken would focus on what Timken could do for the Rulmenti Grei as well as Romanian society such as a detail plan to make Grei become the biggest manufacturer in Europe which could bring thousands jobs for Romanian people by applying new technologies and processes. This investment would contribute much to Romania ¶s economic and technology as well as shorten the distance between Romania and other developed countries in Europe. Furthermore, Timken would show its investment in environmental protection and other activities to improve the Romanian environment, education, and living standards. Last but not least, Timken should also consider to nominate the appropriate acquisition price as it would be very difficult to win if its nominated price is much lower than that of other competitors. Furthermore, Timken could even ask for some commitment from Rumanian Government for a stable law in bearing industry or even a favorable treatment for Timken to ensure the sustainable growth especially in the first stage of investment. Proceed with a proposal or not? Globalization is said to be a double-edged sword (Bhattacharya, 2008). For all the pros and cons of this acquisition, the trade-off between benefits, costs and risks should be taken into consideration. However, one of the reason why Timken had not cracked the European market was its lack of competitive production capacity and a strong local presence on the continent, which was the home field of its two largest competitors, SKF and FAG. Although Timken had several manufacturing plants in Europe, the plants were low scale and less efficient compared to those of its major European competitors. Therefore, if Timken chose not to proceed this acquisition, the company would still need to secure low-cost manufacturing capacity some wherein Europe to build a platform to win European market. With its advantages as mentioned above, Rulmenti Grei was the best choice to support Timken ¶s mission, so taking this chance would open a new world of success for Timken. Moreover, SKF was keen on acquire Rulmenti Grei soif Timken did not take this chance, the distance between SKF and Timken might be lengthened and Timken might lose its competitive ability in Europe. Then, increasing European market share would be a big problem of Timken. Proceeding the proposal would be the lucid decision, however, the problem was how to analyze the risks accurately and mitigate them effectively. For example, as politics never stops moving, risk analysts must be able to follow a nations story as it develops with information gathered from journalists in the local and foreign press, current and former midlevel officials, and think-tank specialists (Bremmer, 2005). To mitigate the political risks, companies can maintain the good relationship with the government or become part of the country ¶s infrastructure or use local R, etc (Boter Wincent, 2010). In addition, companies can buy insurance for political risks such as the expropriation of property, political violence, currency inconvertibility, and breach of contract (Bremmer, 2005). However, it is worth remembering that though instability translates into greater risk, risk is not always a bad thing. Political risk in underdeveloped countries nearly always carries an upside because such nations are so unstable that negative shocks can do little further damage. (Bremmer, 2005). For the operational risk of not achieving Timken ¶s quality, Timken could mitigate it by controlling the materials, applying the qualified technologies, equipments, processes and management. The most importance is to prepare an accurate plan and try to apply these things as soon as possible. Expand its product line in response to European customer demand or not? In contrast to U. S where customers sought out specialty manufacturers for each bearing type, European customers preferred to buy all their bearings from a full-line producers. Thus, remaining a specialty manufacturer limited Timken’s potential market. Besides, Timken’s competitive position was also impacted by the lack of a full metric line for its bearings. In order to satisfy local demand, it would be necessary to expand its product line to compete with both local companies as well as international rivals. Each market often turns out to be unique because customers ¶ needs and tastes are idiosyncratic. Local companies are often the first to realize that and to build businesses. They are not constrained by existing products or by preconceived notions about customer needs. They customize products and services to meet different consumer requirements, and they initially go after economies of scope while many global companies find it costly and cumbersome to modify their products, services, and communications to suit local tastes. Global companies often end up occupying small, super premium niches (Khanna, 2006). When a business begins, it usually has only one product to satisfy a small group of customers. However, when it becomes famous, it is the time for it to develop something new to offer the customers. A broad product line and wide customer base may be the keys to success in tough times (Levine, 2001). The first advantage of product diversification is the increase of market share. By offering different products, company can satisfy a wide range of customers and enlarge its market share. Consequently, its revenue will increase and its brand will be known more wider and will be mentioned more frequently which leads to the higher brand value. Furthermore, this strategy also helps reduce overall business risk by offering products in a variety of customer categories to avoid having all eggs in one basket (Acevedo, 2009) and provide quick movement away from declining activities. LIST OF REFERENCE Acevedo, L. 2009. Product Diversification Strategy, Ehow website, retrieved [2010-11-17]. Bhattacharya, A. K. and Michael, D. C. 2008. How Local Companies Keep Multinationals at Bay. Harvard Business Review, 86(3): 84-95. Boter, H. and Wincent, J. 2010. Managing Networks and Internationalization  ± Lecture 2, UmeaSchool of Business. Bremmer, I. 2005. Managing Risk in an Unstable World. Harvard Business Review, 83(6): 51-60 Khanna, T. and Palepu, K. G. 2006. Emerging Giants. Building World-Class Companies inDeveloping Economies. Harvard Business Review, 84(10): 60-69. Levine, B. 2001, Diversify And Prosper, Electronic News (10616624), Vol. 47 Issue 25, p2. Mackenzie, S. 2003. The Timken Company: Market Entry Into Romania (A) Case Study,Stanford Graduate School of Business.

Wednesday, November 27, 2019

Enron Paper Essays (1440 words) - Enron Scandal, Accounting Scandals

Victoria Sanson Sociology 332: Sociology of Organization Professor Deng April 26, 2018 Enron Scandal Modern formal organizations have taken over the traditional organizations. The modern formal organization has split the atom of private property. This private property consists of two rights, the right to use the property and the right to benefit from the use of the property. Modern organization also consist of two groups of actors, the agents hold the usage rights and the principals retain the right to benefit from that use. While in traditional organizations, there is no such separation between the right to use and the right to benefit from the use, between principals and agents. The modern formal organization is little more than a buddle of contracts signed by multiple principals and multiple agents. Principals are the buyer of the goods or services and for most companies the principals are multiple owners, such as the shareholders and taxpayers. These people want to accomplish a certain goal but lack some of the skills or capacities necessary to do so. In order to accomplish t his goal the principals must find other people with those skills or capacities and obtain their service in return for remuneration of some sort. The agents are the sellers of the goods or services. The agents are all those employed by the corporation, such as CEO and production workers or by the governments, such as the governing officials and employees. Throughout the late 1990s, Enron was almost universally considered one of the country's most innovative companies. Enron Corporation was an American energy, commodities, and services company based in Houston, Texas. Before its bankruptcy on December 2, 2001, Enron employed approximately 20,000 staff and was one of the world's major electricity, natural gas, communications and pulp and paper companies, with claimed revenues of nearly $101 billion during 2000. Fortune named Enron "America's Most Innovative Company" for six consecutive years. At the end of 2001, it was revealed that Enron's reported financial condition was sustained by institutionalized, systematic, and creatively planned accounting fraud, known since as the Enron scandal. Enron is a modern formal organization that was made up of many different contracts. These contracts ranged from electrical, gas, to political relationships. One on the main contracts that Enron had was a natural gas call Enron Oil. Enron made a bet with two different oil trades and due to Enron's political ties with the Bush administration, Enron always won the bet. Enron had one of the most significant relationships between a presidential family and a single corporation. The executives had a connection to the Bush administration, which help Enron secure billions of dollars in government subsidies. This was great for Enron on betting on oil. Once Enron started to make money of their oil industry, many of the higher ups in the company began to put company profit into their personal bank accounts. Along with this action they began to gamble all of Enron's reserved trades. Executives being to manipulate money to make it appear as though there were winning in the gamble. Another major co ntract that Enron had was PGE Electrical. PGE was marketed in California and all profit that PGE gain became profit for Enron. Once Enron began doing business in California things were not always that bright. Enron began creating artificial power shortages in California, which helped trigger an energy crisis in 2000 and 2001. Electricity traders at Enron drove up prices during the California power crisis through questionable techniques. This event cost residents billions of dollars in surcharges and the yearlong energy crisis cost California alone 30 billion dollars. The agents of Enron have maximized their utilities at the expenses of principals' interests. These agents consistent of the top executives of Enron. These executives played the company for their own advantages without worrying about the outcome for the rest of the company. These people have forged the public records of their income to make the public and their shareholders believe that Enron was bringing in more money than they actually were. Marked to Market is the changing of numbers on the public record. This allowed Enron's profit to be whatever the people at Enron wanted it to be. The agents were putting portion of company money in

Sunday, November 24, 2019

Warfare in the High Skies

Warfare in the High Skies Abstract Etihad Airways and Emirates Airways are two rival airlines operating from the United Arab Emirates (UAE). This proposal looks at several components of a research project designed to look at the elements of their marketing strategies, against the backdrop of their rivalry. The paper provides an analysis of the two companies and compares their marketing strategies.Advertising We will write a custom term paper sample on Warfare in the High Skies specifically for you for only $16.05 $11/page Learn More The paper also presents findings of previous research regarding international market entry and examines the different approaches that may be used by a company looking to establish itself into a foreign land. The paper closes by giving various recommendations to both Etihad and Emirates on how they can advance by learning from each other which may threaten the representativeness of the achieved sample. Introduction Etihad Airways and Emirates Airways are t wo rival airlines operating from the United Arab Emirates (UAE). This proposal looks at several components of a research project designed to look at the elements of their marketing strategies, against the backdrop of their rivalry. As can be seen from table 1, the income from the airline business keeps fluctuating. Chart 1 and 2 also depict the results in the table graphically. Table 1: Summary of Airline Profits and Margin Item / Year 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Operating Revenue 291 295 305 328 307 306 321 378 413 452 490 514 Operating Expense 274 279 293 317 319 311 323 375 409 440 474 498 Operating Profit 17 16 12 11 -12 -5 -2 3 4 12 16 16 Operating Margin (%) 5.8 5.4 3.9 3.3 -3.9 -1.6 -0.6 0.8 1 2.6 3.3 3.1 Net Profit 8.5 8.2 8.5 3.7 -13 -11.3 -7.6 -5.6 -4.1 -0.5 5.6 5 Net Margin (%) 2.9 2.8 2.8 1.1 -4.2 -3.7 -2.4 -1.5 -1 -0.1 1.1 1 Chart 1: Summary of Airline Profits and Margin Chart 2: Trend of Changes over the YearsAdvertisi ng Looking for term paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Aims and Objectives The aim of the study is to determine the factors affecting the choice of market entry models in the international market. Emirates Airlines and the Etihad Airlines have managed to break into international markets despite bitter domestic rivalry. This makes them the best candidates for the study. The objectives of the study will be as follows. To investigate the market entry models of Etihad Airlines and the Emirates Airlines. To investigate the defining elements and the implications of the rivalry between the Etihad Airlines and the Emirates Airlines. To determine the long term prospects of the two airlines in relation to their existing marketing strategies in the context of their rivalry Justification for the Topic Etihad Airways and Emirates Airlines are bitter rivals in the airline sector in the UAE. The two ai rlines have been competing for market share since the establishment of Etihad Airlines. The significant difference between these two airlines is that Etihad Airlines is much younger than Emirates Airlines. Despite this, Etihad Airlines is proving to be a strong competitor for leadership in the UAE airspace. The main question this leads to is â€Å"how can a young company take on an established company and become a fierce rival?† Secondly, â€Å"what marketing strategies do the two airlines use, and how do these strategies contribute towards their success?† Need for the Study The need to study the rivalry between Etihad Airlines and the Emirates Airlines comes from the following reasons. First, marketing determines the success or failure of any business. Therefore, the fact that Etihad Airlines and Emirates Airlines are each successful in their own right makes them ideal candidates for a study in marketing strategy. Secondly, Etihad Airlines has not yet broken even sinc e its inception, and it will take a few more years before it makes profits. Emirates Airlines has been making profits throughout its history. Does this situation stem from the marketing strategies of the two airlines? Thirdly, there is need to determine the long term prospects for the two airlines given their existing rivalry.Advertising We will write a custom term paper sample on Warfare in the High Skies specifically for you for only $16.05 $11/page Learn More Importance of the Study The importance of this study is that it will provide a platform for examining the effectiveness of marketing strategies under a situation of bitter rivalry. The two airlines position themselves as luxury airlines. They also provide services in very competitive routes across the global landscape. Their rivalry can end up with one of them collapsing and the other becoming a monopoly. On the other hand, each of the companies is a target of acquisition by its rival. These issues illustrate the importance of studying the marketing strategies of the two airlines in order to determine which one is likely to survive in the long term. The proposal aims to provide a good background to understand how the two competing companies operate, and how they can actually take advantage of their strengths to position themselves strategically in the market. Furthermore, the relevant data that will result from this study will be a very useful resource to both companies as they seek to expand their operations. Based on the outcome of this study, the two companies will be able to analyze their marketing strategies and make the necessary improvements where necessary in order to perform better. As the two companies have already made a move to penetrate the international market, this results of this study will provide them with information that is critical for their survival in an international set up. Besides, this study will be a good reference for future market researches or ev en for existing and potential airline companies. Sources of Information There are three main sources of data for this project. First, the project will examine existing data regarding the operations of the two airlines from literature. The study will also examine research papers written on various aspects of the operations of the two airlines. It will be important to interview people who use the airlines to determine the customer satisfaction indices. Finally, it will be important to study publications by the two companies to decipher their marketing strategies.Advertising Looking for term paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Literature Review Among other things, this section will examine the literature that exists regarding these two rival companies. The information gathered will later provide a good foundation for understanding how these two companies carry out their marketing operations and what the future holds for two. Defining Marketing According to critics, the marketing concept is about producing things that people do not really need and then tricking the customers into buying them through deceitful advertising. However, Shaw (2011) describes marketing as a complete philosophy for running a business, based on the meeting of well researched, well understood, and genuine customer requirements. It is the management process responsible for identifying, anticipating, and satisfying customer requirements in a profitable manner (Shaw, 2011). Apparently, the use of the word anticipating in the definition emphasizes that marketing is a dynamic discipline, where customer requirements. According to Shaw (20 11), successful airlines are those that accept the principles of marketing should provide a framework for all they do, and set out to apply these principles as widely and as rigorously as possible. Background of Etihad Airlines and the Emirates Airlines Etihad Airways, the national airline of the United Arab Emirates, based in its capital Abu Dhabi, made its first commercial flight in November 2003 (Hausmann, Austin Mia, 2009). Since then, the airline has grown faster than any other in the commercial aviation history, currently serving more than 50 destinations in Asia, Africa, Australia, Europe, the Middle East, and North America. Etihad offers the highest standards of service and comfort both on the ground and in the air with world class cuisine, award winning flat beds in its premium cabins and the widest seats in the economy, as well as more than 500 hours of on-demand in-flight entertainment. Etihad operates a young and environmentally efficient fleet of at least 42 aircraft, which is set to continue growing (Hausmann, Austin Mia, 2009). The Emirates group consists of Emirates Airline, Dnata, Mercator, Transguard, and Emquest. Emirates Airline’s divisions include Emirates SkyCargo, and Emirates Destination and Leisure Management, which manages Emirates holidays, Arabian Adventures, and Emirates Hotels and Resorts. According to Hausmann, Austin and Mia (2009), Emirates operates services to 97 cities in 61 countries in Europe, America, the Middle East, Africa, the Indian sub content, and Asia-Pacific. The airplane’s wide bodied fleet comprises over 110 aircraft and it has on order, a further 112 aircraft worth more than US$ 30 (Hausmann, Austin Mia, 2009). Apparently, international sports sponsorship plays a central role in Etihad’s global marketing strategy, as it seeks to develop its profile in markets across the world. Major international sponsorship deals include the Ferrari F1 Grand Prix team, Chelsea Football Club, the Etihad S tadium, Harlequins Rugby Football club, and All Irish Hurling Champions. Etihad is the title sponsor of the Formula One Etihad Airways Abu Dhabi Grand Prix (Hausmann, Austin Mia, 2009). According to Kleymann and Seristà ¶ (2004), Emirates Airlines is reluctant to join a global alliance as its existing relationships with OneWorld and the Star alliance, are providing good benefits and revenue streams. Emirates Airlines is concerned that a global alliance strategy may conflict with the development of Dubai International Airport as an Emirates hub. Apparently, the carrier is not sure that joining an alliance would make it a feeder airline for others. The Market for Air Transport Services Any airline which is to apply the principle of marketing successfully needs a thorough knowledge of current and potential markets for its services. This knowledge should encompass an understanding of the business in which they participate, and of the market research techniques they must apply in order to gain the knowledge they need about the market place. They must be able to identify customers and distinguish them from consumers. In addition, it is necessary for them to segment their markets. Once they have done so, they need to identify and prioritize the requirements of customers in each of the segments. Finally, and most importantly, they must examine their markets in a dynamic rather than a static sense and anticipate future changes in customer needs. To begin with, any airline first has to deal with the question as to which market or markets are to be studied. To do so, it must answer the fundamental question about the business or businesses in which it participates. In doing so, there are two possibilities. The first and obvious way is to define business participation in terms of what the firm does. Thus, it would be easy for an airline to say that it was a player in the aviation business. There is, however, a significant problem in doing so. It will result in a serious under estimation of both the extent and nature of the competition that the airline faces. As a consequence, defining business in this manner is often characterized as marketing myopia. A much better way is to look at the question from the point of view of the needs that the firm is aiming to satisfy and the competition that it faces. A large airline will be working in at least the transport, communication, and leisure areas. These are explained as follows. Transportation According to Shaw (2011), there is a clear economic and, often social need for transport. Those with this need will look for it to be satisfied in an optimum way. Whether use is made of air transport or a surface transport mode in order to do so is less important to them. There are now many short haul routes where surface transport can provide a level of service in terms of comfort and door to door journey times which is as good as or better than that available from airlines. In the future, this form of competition is likely to become even more marked, given the ambitious investment plans now in place in many countries for the improvement of surface, especially rail, transport. Communication Airlines have always assisted people to communicate, as travel allows opportunities for face to face meetings. It should not be assumed any longer, though, that travel is essential for such meetings to take place. The world is under going a revolution based on video conferencing, conference calling, and email. The future will see video conferencing becoming even cheaper, of better quality, and more widely available. More companies are now investing in video conferencing suits for their staff. Also, almost all personal computers are being sold with in built web cameras, allowing video conferencing to come to the desk top. These are all indicators of substantial amount of competition that airlines are already facing from the telecommunications industry. Seemingly, the degree of this competition will increase further in the future, especially during recessionary times when many firms are under acute pressure to save money. Leisure Airlines today are increasingly involved in the intensely competitive leisure industry. Customers have to decide how they will use both their disposal income and disposable time. Disposable income can be used to purchase holidays. It can, though, also be used to buy a wide range of other consumer items. Disposable leisure time can be used for taking of air based holidays. In the same way, it can be used for other leisure activities. It certainly will be if traveling by air becomes a tiresome experience through flight delays and more and more chaotic airport handling brought about by increasing congestion, more strikes and growing security requirements. For leisure travelers, the impact of surface transport competition is likely to be greater still. Besides competition on service quality, surface operators will be able to challenge airlines on price, with both train and bus services likely to become increasingly significant. The customer in such a situation might be the family member who has most influence in travel decisions. International Entry Strategies As companies face maturing markets and stiffening domestic competition, they show a growing interest in cross border initiatives. Many of today’s leading companies are making foreign market entry decisions on a fairly recurring basis whereas others are taking their first steps in this competitive arena. For example, Best Buy, the world’s largest electronics specialist, continues to internationalize, with market entries into emerging markets such as Mexico and Turkey, and mature markets such as the UK (Carpenter Shankar, 2012). The world’s largest company, Wal-Mart, also actively pursues new foreign operations. As of March 2011, Wal-Mart operated 4587 units in 14 countries outside the USA. The most recently entered market was India, where Wal-Mart runs a wholesale operation under joint venture with India based Bharti Enterprises. So as not to be undone by their Western rivals, rising companies from emerging markets such as Tata Motors and Lenovo are also diligently cultivating a global mindset. India based Tata, for example, recently acquired Jaguar/Land Rover, China’s Geely took over Volvo, and Lenovo bought IBM’s personal computer division. The success of these foreign entries obviously depends on the appropriateness of the firm’s post entry decisions, but may also depend on the strategic choice made at the time of entry, as they shape the platform from which competitive advantages can be gained. Here, we will reflect on both the antecedents and performance consequences of some of the most important decisions that have to be taken at the time of entry. These decisions include; country selection, timing, mode, scale of entry, and the level of adaptation and standardization. As observed by Carpenter Shankar (2012), marke t entry decisions are some of a firm’s most risky strategic choices, as international market entry requires a major commitment of financial and managerial resources. For most firms, it remains uncertain as to whether a large scale presence will ever materialize in the hoped for economies of scale. In a similar way, they wonder when it is best to enter a given market or how much a firm should adapt its concept such as brands, products, and store format, to local taste or whether similar entry strategies will prove to be optimal in mature and emerging markets. This uncertainty helps to explain the variability observed in entry strategies adopted by international players, even within the same industry. Considering that entry decisions remain difficult, managers often turn to prevailing practices in the industry to learn which decisions are good, or even best. Competitive entry decisions are monitored closely, providing a significant input in the decision process. However, the wi de variation in the year of entry, in the scale and mode of entry and in the extent of standardization indicates that this does not imply a mere copying of the most popular pattern. Rather, industry rules suggest different entry decisions contingent on external and internal conditions. Besides looking into the above antecedents of these decisions, here are some insights into the contribution of different strategic choices at entry on post entry performance, especially in the longer run. In spite of this growing extent of internationalization, several firms are still struggling to develop the competencies needed to compete in the global arena. Mixed success has been reported when expanding into the foreign markets. Clearly dominating the US retail market, Wal-Mart’s attempts to apply the company’s proven US formula in an unmodified manner to the German market turned out to be nothing short of a fiasco. Moreover, many international companies do not realize comparable mar gins or returns abroad as in their home market, an a few reach break even in their international. For example, the French retail giant Carrefour loses money in many of its European and cross continental markets. In 2010, Carrefour decided to sell off its 61 supermarkets in Singapore, Malaysia, and Thailand, and focus on markets where it is either the market leader or a strong contender. Overall, firms favor countries with a large prospective customer base as such markets offer better opportunities for good returns. As for scale, several potential indicators are used to assess the potential attractiveness of the market. The indicators a company selects are to a large degree driven by the strategic objectives spelt out in the company’s global mission. Some indicators are derived from macroeconomic trends, others from consumer behavior and culture. Colgate Palmolive, for example, views per capita purchasing power as a major driver behind market opportunities. Starbucks looks at economic indicators, the size of the population, and whether the company can locate good joint venture partners. When choosing markets for a particular product, the metrics to consider should depend on the nature of the product and the way local consumers use and perceive this product. Proctor Gamble chose Malaysia and Singapore as the first markets in Asia for roll out of Febreze, a fabric odor remover. Not only were both markets known for home proud consumers, people there tend to furnish their homes heavily with fabrics. A company might also decide to enter a particular country that is considered as a trendsetter in the industry. Kodak, for example, re-entered the digital camera market in Japan precisely for that reason. According to the president of Kodak Japan, what happens in Japan eventually happens in the rest of the world. The critical role of market size in country selection is supported by several empirical studies. Given that there are several measures to proxy market s ize, the selection of the proper variable is important. A study of the Finnish software enterprises found that the size of the software market in the target country was the most important country selection factor, not GDP or per capita GDP. Apart from the current size, also the future growth prospects are a key consideration. For example, the growth of the middle class is an important driver for many grocery retailers to enter emerging economies. Distance is another selection criterion. Like scale, distance is a multi attribute dimension. It encompasses geographical, cultural, economic and administrative distance (Carpenter Shankar, 2012). All of these criteria will determine how similar a prospective host and home market are. In general, the more similar both markets are, the more likely a firm will enter the prospective host market. One way to capture or quantify the firm’s knowledge of the economic and cultural environment is through the notion of near market knowledge. T he near market knowledge concept enables a firm’s understanding of potential new markets is based on the knowledge generated from operating in similar markets. Administrative distance and hurdles also play a role in a firm’s country selection process. Tariffs, trade quota, restrictions on foreign direct investment and preferences to protect domestic competition by prospective host countries’ governments will directly impede a firm from selecting a country as potential new market. On the other hand, when administrative borders erode, cross border diffusion will accelerate. Generally, the importance of distance tends to evolve as the firm gains more international experience. As the firm gathers more internal expertise, it can expand into countries that are geographically or culturally more distant. For example, Starbucks opened its first store in Canada in 1987, Wal-Mart chose Mexico as its first market outside the US for the launch of the Xbox 360 game console (C arpenter Shankar, 2012). When operating in similar countries, it is hoped that relevant knowledge can be transferred from one country to another. Tracking competitors’ moves also plays an important role in country selection. As firms meet their competitors more and more in several different international markets, the mere presence of those rivals can become an important selection criterion. Dynamics of Entry Strategies The impact of an entry decision can change over time. Some decisions will have along term impact, while in other cases their effect will be relatively short lived. Moreover, the importance of certain factors can change as firms grow more familiar with foreign operations. For example, as the firm builds more international experience, the cultural or economic distance to the home country may become less of an impediment. A study of the international expansion paths of US service firms found that as their international experience increases, these firms indeed see k out markets that are geographically and culturally more distant. An important factor in this evolution is the firm’s ability to transfer knowledge across countries. Conventional wisdom appears to be that firms should gradually enter into more remote countries, where each time, one’s knowledge base is updated in a rather incremental fashion and without major shocks. However, at some point, the firm may adopt an alternative strategy to immediately go to a variety of vastly different target markets, in order to quickly enrich its base through a wide variety of experiences. The former corresponds to a waterfall strategy, while the latter is associated with a sprinkler strategy of international expansion. Firms may also adapt their entry mode over time. The drivers that resulted in the initial entry mode selection tend to evolve over time. As a result, the firm may feel the urge to switch its presence mode. Conventional wisdom suggests that firms progressively move to gre ater control modes. For instance, Starbucks initially entered China through three joint ventures covering different regions. Over time, the firm raised its control in three ventures. In 2006, the coffee chain increased its ownership in the North China partnership to 90 percent so that it could achieve greater operational efficiencies and accelerate its market expansion. So far, scant attention has been paid to the dynamics of entry mode choices. The limited research that dies exist has primarily focused on the antecedents of an internationalization mode change and, not so much on the performance consequences. Finally, while previous research has often focused on the scale of the initial entry, interesting research opportunities are present when studying the subsequent evolution in the investments in different countries, especially for companies with an extended country portfolio. Indeed, trade offs have to be made then on where to grow first. This may require divestments in other co untries, even when the operations in the latter are profitable as well. More and more are no longer confined to their local market, but extend their operations across multiple countries. This involves considerable risks, as major decisions with long lasting performance implications need to be made under considerable uncertainty. Indeed, various decisions have to be made when entering foreign markets, including the selection of the target countries, the timing, the scale and mode of entry, and the extent of standardization versus local adaptation. Throughout this section, relevant literature has been reviewed on these decisions. More attention should be given to capture simultaneously the impact of certain variables on both the selection decision and the subsequent post entry performance of the foreign venture. One concern in addressing this challenge is that researchers usually restrict their samples to countries that the firm decided to enter. Typically, information on the firmâ₠¬â„¢s consideration set of countries at the time of the entry decision is ignored, thereby creating potential sample selection biases. Still, one could envision modeling the selection issue and incorporating it in the performance evaluation. By looking simultaneously at an outcome and selection equation, less biased results may be obtained with respect to the relative importance of the various selection criteria. Although the discussion in this section has concentrated on international entry strategies, exist in global marketing are not uncommon. In 2001, Colgate Palmolive sold its laundry detergent brands in Mexico to Henkel, its German competitor. In 2006, Wal-Mart retreated twice in a row. The company first sold its stores in South Korea and then, barely two months later, it also sold its German stores to Metro. Similarly, Nokia, the world’s largest mobile phone maker, decided to stop making phones for the Japanese market in 2008. However, the literature on market exits is much more limited than on market entries. Initially, firm exits were mostly described as failures, with a focus on poor market shares, low profitability, or lack of financial resources. More recently, more strategic motives have also been identified, such as the need to exit because of a lack of a lack of strategic fit, restructuring, and other proactive moves. Within the more resource based view of the firm, divestments are then described as a move towards the core business by getting rid of non core assets, while portfolio theory has focused on how firms may want to realign their country portfolio to optimally exploit market opportunities. In line with the entry literature, the antecedents and performance consequences for the firms as a whole should be investigated in more detail, so that we can learn when exits may benefit the firm or when they made in vain. As such, one should consider both economic costs of exit, including the sunk costs made during entry that will not be reco vered, and the more strategic costs coming from the ties between the subsidiary that has to be divested and the rest of the firm’s network. Market Entry Modes of Etihad and Emirates Airlines One of the approaches that used by Etihad to penetrate new market us is by forming new alliances. One of the major reasons why alliances are created is to strengthen a company’s position in the market. By forming alliances, Etihad will be able to take advantage of the network created by collaborating partners. Eventually, this leads to reduced operation costs. Emirates and Virgin, however, refused to form an alliance based on the fact that they had distinct products and were, therefore, convinced that working separately offered the solution. The two companies felt that the incremental benefits of global alliance membership do not justify the costs involved in joining. When the Director of External Affairs and route planning of Virgin Atlanta was asked about the possibility of his c ompany entering an alliance, he answered that there had been no need to join any alliance so far (Iatrou Oretti, 2007). Apparently, the Director was convinced beyond doubt that the main advantage of not joining an alliance was flexibility, adding that although he could not point to any particular hard benefit, he also believed that by not having to pay alliance subscription fees or dedicate management time to alliance meetings, Virgin had lower costs. The benefits of joining an alliance are outweighed by staying independent. There is no need to consult anyone regarding timetables or fleet schedules. According to Emirates, the most negative aspects of alliances are slow decision making and compromises members of an alliance are required to make, causing them to settle for the lowest common denominator. Emirates further claims that alliances become bureaucracy laden and divert members’ attention from their core business which is considered an unhealthy situation for forward lo oking and progressive carriers. It is, however, assumed that the growing strength of close competitors such as Qatar Airways and Etihad Airways may at sometime influence its future decisions. Even though Emirates prefer to operate in isolation, the airline acknowledges that alliances are good and is, thus, still open to the idea of forming alliances. As explained earlier, Etihad’s performance has been spectacular despite having been in existence for only a short period of time in comparison to Emirates. Clearly, Etihad, is not afraid to venture into new grounds and this explains why its performance is the way it is. It may be necessary for Emirates to rethink their operational strategy. According to Iatrou Oretti (2007), alliance carriers retain a host of bilateral relations with non member airlines and there are several instances of code sharing between members of rival global alliances. Once the shape of global alliances becomes clearer and more stable, and they grow more exclusive in nature, member airlines may find it difficult to grandfather existing agreements at the time of joining or develop new ones with carriers belonging to a different grouping. Furthermore, should existing coalitions proceed towards deeper integration and start achieving meaningful revenue enhancements and cost reductions it would eventually tip the scale in favor of alliances, increasing their competitive advantages and desirability. Such developments could put extra pressure on the unaligned airlines such as Emirates to re-evaluate their approach towards multilateral partnerships. Etihad also markets itself by offering high quality standards of products and services. Etihad also takes advantage of international sports sponsorship to penetrate the global marketing, as it seeks to develop its profile in markets across the world. As noted elsewhere in this paper, major international sponsorship deals include the Ferrari F1 Grand Prix team, Chelsea Football Club, the Etihad S tadium, Harlequins Rugby Football club, and All Irish Hurling Champions. Etihad is the title sponsor of the Formula One Etihad Airways Abu Dhabi Grand Prix (Hausmann, Austin Mia, 2009). In spite of it being a negative approach to forward progression, avoiding alliance membership has bee supported by other airlines as well. This is an expression of the desire to prevent the alliance from taking too much influence over one’s airline. For example, in the aftermath of the failed integration between KLM and British Airways in mid 2000, the Chief Executive Officer of KLM resorted to stressing his airlines capabilities to go it alone, thereby implicitly down playing the absolute need for an alliance with a competitor. During the discussions with British Airways, KLM has successfully continued on the development and profitability of the airline company. Frequently, the reluctance to integrate too tightly was defined with the fact that alliance membership had really nothing to offer or that up to now, the alliance scene is still considered to be too unstable, or less frequently, because alliancing as such was seen as inherently detrimental to the airline. Generally, it is smaller carriers that have been quick to acknowledge integration. As to outright alliance avoidance, non aligned carriers tended openly to justify their choices of avoiding alliance group membership. As noted earlier, Emirates Airlines is still not ready to join a global alliance as its existing relationships with both the OneWorld and the Star alliance are providing good benefits and revenue streams. Emirates corporate treasurer is, however, concerned that a global alliance strategy may jeopardize its chances of becoming the Emirates hub at Dubai International. Methodology Basically, this study will be based on primary and secondary information sources. Firstly, the literature review will be carried out by consulting books, journals, the Internet, and other relevant sources. Secondly, primary data will be acquired by means of questionnaires. In addition, case studies from the United Arab Emirates will be used to complement the practical part of this research. Research Design and Data Collection Instruments The approach for the study will be quantitative analysis. As has already been stated above, questionnaires will be used for gathering primary data. Other techniques that may be useful for this study are interviews and focused group discussions. These data collection instruments are explained in the subsequent sub sections. Questionnaires Questionnaires are the most frequently used methods for data collection. They provide a method of collecting data by asking people questions or asking them to agree or disagree with statements representing different points. Questions can be open ended, where respondents supply their own answers, or closed ended, where they select from a list of provided answers (Babbie, 2000). According to Gillham (2000), questionnaires are rarely ade quate as a research method on their own. Apparently, this is true of every research methods, especially when one is dealing with a complex real world situation. Generally, the format of a questionnaire can influence the quality of the data collected. A clear format for contingency questions is necessary to ensure that the respondents answer all questions intended for them. It is also possible that the order of items in the questionnaire can influence the response given. Before being administered to the study sample, it is imperative to pretest the questionnaires (Babbie, 2000). The items in a questionnaire are constructed to elicit information on attributes, attitudes, beliefs, reported behavior, health status, knowledge, or psychological traits or states. Respondents may be asked to respond to items on a past, present or predicted timescale. Each item might provide a response that is analyzed individually or be one of a number of items that collectively constitute a measurement sca le on some concept or variable. It should be noted that, in contrast to the measurement of physical quantities such as weight, or distance, the process of measurement involved with such composite scales is not direct. A good questionnaire takes time and skill to construct, and its content and structure should be consistent with the research questions or hypotheses of the study. In general, a questionnaire might comprise all close ended items or might incorporate a portion of open ended items. Questionnaires produce quantitative data for the most part though those that include open ended items will generate some qualitative data, but of less detail and much depth than that obtained by an unstructured interview. The principle alternative to questionnaire is the interview. Questionnaires tend to be classified according to their mode of delivery, whereas interviews are classified in terms of their degree of structure. Although questionnaires are self-completed, they can also be research er completed. Although typically administered by post, a self completed questionnaire might be handed to a group of respondents whom the researcher might hand deliver the questionnaires to the respondents’ homes. Questionnaires have the advantage of saving time. They are also less costly unlike interviews and focused groups. However, where questionnaires are used, the researcher does not get the opportunity to provide any clarifications. To deal with this challenge, it will be necessary to ensure that the questions are properly prepared. Any ambiguity will only serve to confuse the respondents. In addition to the general strengths and weaknesses of self completed questionnaires, there are some specific advantages and disadvantages of postal administration. On the positive side, the cost of this method of delivery is about half that of the telephone administration and a quarter that of face to face administration. The lack of interviewer costs which include recruiting, trainin g, and monitoring, is a particular advantage in this respect. A study using postal questionnaires takes about the same length of time to execute regardless of sample size or geographical spread. Furthermore, the geographical dispersion of respondents does not normally affect the cost, in contrast to methods that require telephone or especially face to face contact. A postal questionnaire can also be delivered to the whole sample at the same time. In addition, it can be completed at recipients’ own convenient time, and allows them to provide information that may not be readily available. A practical draw back of postal administration is that the researcher requires a list of postal addresses, or access to respondents through a third party such as a professional body or charitable organization, in which case, the researcher often has no direct control over follow up to non responders. A further problem is that postal questionnaires can be subject to higher non response rates th an other means of administering questionnaires. If open ended items are included, in a postal questionnaire, the answers obtained are usually shorter and less in depth than with face to face or telephone interviews. Whatever their intended mode of delivery, questionnaires should be piloted. Table 2 shows the advantages and disadvantages of self completed questionnaires. Table 2: Advantages and Disadvantages of Self – Completed Questionnaires Advantages Disadvantages Easy to complete, if well constructed and presented in a way suited to the target Developing a well constructed questionnaire that produces valid and reliable data is difficult Suitable for topics for which fixed response options can be determined Of limited use for topics where the nature or form of responses cannot be predicted, or for complex issues can not be broken down into a series of simple questions Suitable for gathering much the same information from respondents Less suited to situations where different categories of information are required from different types of respondents since this would entail undue structural complexity in the questionnaire The form in which information is gained from each respondent is usually the same, facilitating comparative analysis across respondents Participants answers are largely constrained to fixed response options which may not be wholly appropriate or comprehensive with limited scope to qualify their answers or introduce issues of their own Can gather somewhat superficial data economically form a large number of individuals The researcher can not explore issues in depth by seeking clarification or elaboration Questions can be worded to include a retrospective time frame for the response May be inappropriate when spontaneous responses are required since the respondents are first required to read and understand the questions asked The language as well the terminology are the same for all respondents Require a minimum common leve l of literacy and comprehension and there is a potential for bias if the questionnaire has to be translated for some participants Anonymity of the respondents is easy to guarantee, and this encourages to be fully cooperate There is little guarantee as to where, when, by whom, and in what order the questionnaire is completed The reactive effects of direct contact between the researcher and participants are avoided The wording and structure of individual items may lead to biased responses, and hence unreliable results Data, particularly those deriving from closed ended questions are relatively easy to analyze and a detailed analysis procedure can be determined in advance. It can be difficult to interpret missing data or inconsistent or ambiguous responses. There is no opportunity to query the actual meaning of individual responses Interviews An interview may be defined as a conversation between interviewers and interviewees with the purpose of eliciting certain information. T hey may be carried out face to face or by telephone (Sim Wright, 2000). The essential characteristic of interviews is that they be neutral. Interviewers must be carefully trained to be familiar with the questionnaire, to follow the question wording, and question order exactly, and to record responses exactly as they are given. The advantage of interviews is that the interviewer can provide some guidance in case a respondent is not sure of what is expected of him or her. Interviews can, however, yield compromised results, especially when the interviewer is biased. Focus Group Discussions Focus groups are groups made up of a small number of people, coming together, to address a specific issue. Although this approach guarantees credible results, it has the disadvantage of being very costly. According to Sim and Wright (2000), focus group discussions have been in the tool kit of social scientists for some time now. In more recent decades, the use of the focus group discussions has incr eased amongst some areas of research as a tool to inform policy and practice. For example, focus group discussions have been used in health and behavioral research, strategic planning, health promotion, policy development, and programme evaluation (Holloway 2008). The increased use of focus group discussions is partly due to a broader acceptability of qualitative methods in these disciplines, but also due to a greater emphasis on the inclusion of qualitative methods in mixed method research designs, to respond to research issues not accessible by quantitative approaches. This more recent emphasis on integrating qualitative and quantitative approaches has ben encouraged by research funding bodies and has led to a renewed focus of raining in missed method research design for post graduate students in academic institutions. The increased use of focus group discussions has led to a greater number and variety of researchers using the method. Focus group discussions are also being applied in a greater variety of settings than in the past. In particular focus group discussions are often used in international research, particularly in developing country contexts. Despite the broader application of the focus group discussion in a wide variety of contexts, much of the existing methodological literature is written with an implicit assumption that the method is being applied only in western developed country context. For this research, questionnaires will be used to collect primary data. The method has strategically been selected because it is quicker than the other data collection methods. In addition, questionnaire will cost much less than either the interviews or focused group discussions. They will also make it possible to reach a bigger number of respondents (Rivera 2007). The questionnaire designed for the research is included under appendix 1. Findings and Conclusion Most airlines have a competitive strategy embodying the type of value they intend delivering. Its c hoice of competitive strategy is reflected in each carrier’s operating strategy. However, the performance associated with an opening strategy depends largely on benefits earned from delivering expected benefits to targeted customers and on costs incurred delivering those benefits. According to airlines have annual revenues of approximately half a trillion dollars and employ over 2 million people. They directly support another 2.9 million jobs at the airport and civil aerospace manufacturers, and may indirectly support in excess of 15 million jobs in tourism. From the discussion presented in this paper, it is obvious that market penetration is not an easy task. It is, therefore, important for each of the airlines to ensure that a good marketing plan is followed by everyone. Although the two airlines focus on different standards of operation, they can each learn form each other, eventually leading improved services. Although Emirates airline does not care about forming alliance s, it will be necessary for the airline to consider forming alliances in order to take advantage of the structures that have been put in place. A key issue is the enhanced competition in the airline industry. There is an obvious polarization between luxury between luxury and low cost brands which will progress. This means that not only does LCC detract market share of established airlines but are also previous middle class airlines will entering the high class market segment. Clearly, both Etihad and Emirates are competing to offer better services to clients and increase their profits. However, the competition will only serve to make the airlines fail to operate smoothly. Rather than compete against each other, it would be beneficial for both airlines to learn good practices from each other in order to progress and go even further. References Babbie, E. R. (2010). The Basics of Social Research. Belmont, CA: Cengage Learning. Carpenter, G. S., Shankar, V. (2012). Handbook of Marketi ng Strategy. Northampton, MA: Edward Elgar Publishing. Gillham, B. (2000). Developing a Questionnaire. New York, NY: Continuum International Publishing Group. Hausmann, R., Austin, E. L., Mia, I. (2009).The Mexico Competitiveness Report 2009. Geneva, Switzerland: World Economic Forum. Holloway, S. (2008). Straight and Level: Practical Airline Economics. Burlington, VT: Ashgate Publishing, Limited. Iatrou, K., Oretti, M. (2007). Airline Choices for the Future: From Alliances to Mergers. Burlington, VT: Ashgate Publishing, Limited. Kleymann, B., Seristà ¶, H. (2004). Managing Strategic Airline Alliances. Burlington, VT: Ashgate Publishing, Limited. Rivera, M. M., Rivera, R. V. (2007). Thesis Dissertation Writing. Quezon City, Philippines: Goodwill Trading Co., Inc. Shaw, S. (2011). Airline Marketing and Management. Burlington, VT: Ashgate Publishing, Limited. Sim, J., Wright, C. (2000). Research in Health Care: Concepts, Designs and Methods. Cheltenham, UK: Nelson Thornes. Appe ndix: Questionnaire Part A: Demographics Kindly answer the following questions by ticking (√) against your preferred choice (s). Please Indicate your position in the organization Marketing Manager Sales Executive Flight Attendant Any other? Please specify How long have you worked for the airline? Less than 1 year 1 2 years 2 3 Years More than 3 Years How long have you worked at your current position? Less than 1 year 1 2 years 2 3 Years More than 3 Years Part B: Market Entry Models In your opinion, which of the following is the most effective mode of entry into a new foreign market? (Please circle the number closest to your choice) Most Effective Effective Least Effective (a) Joint ventures 5 4 3 2 1 (b) Alliances 5 4 3 2 1 (c) Direct Investment 5 4 3 2 1 Part C: Multinational Experience In your opinion, does the company generate a huge income from foreign investments? (Please tick (√) one of the following) Strongly Agree Agree Do not Ag ree Disagree Strongly How capable do you think your firm is in terms of technological, managerial, and financial capabilities to handle international expansion? (Please tick (√) one of the following) Not Fully Prepared Prepared Somehow Fully Prepared Part D: Ability to Develop Differential Products How do you rate your firm’s training program in terms of preparing personnel to conduct international business? (Circle the number closest to your view) Most Effective Effective Least Effective (a) The firm has well designed training programs 5 4 3 2 1 (b) The firm has a poorly structured training programs that can not full prepare personnel to conduct international business 5 4 3 2 1 How do you rate your firms potential to create new and creatively structured products? (Please tick (√) one of the following) Poor Excellent Not Sure Part E: Ability to Stay ahead of Competitors How would rate your firms ability to handle the fierce competition in the airline industry? (Please tick (√) one of the following) Most Effective Effective Least Effective Part F: Government Policies and Political Environment What do you think is the attitude of government toward foreign investment in general? (Please tick (√) one of the following) Supportive Not Supportive Not Sure Do you think that the political, social, and economic conditions in the potential foreign investment markets are stable? (Please tick (√) one of the following) Strongly Agree Agree Do not Agree Disagree Strongly Part G: Contractual Risk How would you rate the costs associated with making and enforcing foreign contracts? (Please tick (√) one of the following) Very Costly Costly Not Costly Do you think that your firm’s standards of quality will be maintained if the firm operated jointly with local companies in the foreign market? (Please tick (√) one of the following) Strongly Agree Agree Do not Agree Disagree Strongly In your opinion, do you think there are any risks associated with the dissipation or misuse of your firm’s proprietary knowledge if you operated jointly with local companies in the foreign market? (Please tick (√) one of the following) Strongly Agree Agree Do not Agree Disagree Strongly