An Introduction for Ryanair

INTRODUCTION Background in Brief Ryanair was established by the Ryan family with a staff of 25. Its first route was launched in 1985 with a 15-seat aircraft ferrying passengers between Waterford in Ireland and London. In 1986, Ryanair launched its route from Dublin to London to challenge British Airways and Aer Lingus, the two dominant airline carriers on that route, by offering fares at lower prices. With two routes in operation, Ryanair carried 82,000 passengers in its first full year of operation. By 1993 Ryanair has carried over 1 million passengers.In 1995 Ryanair overtook Aer Lingus and British Airways to become the biggest international scheduled route carrier in Europe. The Organization Today Ryanair now operates more than 1,500 flights per day from 57 bases on 1,500 low fare routes across 28 countries. It connects 178 destinations and operating a fleet of 305 new Boeing 737-800 aircraft. In 2012, Ryanair had a team of more than 8,500 employees and carried over 78 million pas sengers. Ryanair’s main business is to provide â€Å"low-fare-no filling† airline services.Ryanair also offers various ancillary services including in-flight sale of beverages and food, car hire services, internet-related services etc. To expend its network, Ryanair, which already owns 29. 82% of Aer Lingus in 2012 announced its intention to acquire Aer Lingus by making an all cash offer of â‚ ¬1. 30 per share for its entire share capital. Ryanair recorded a profit of â‚ ¬503 million in 2012 fiscal year, increased 25% compared with year 2011 despite a â‚ ¬367 million rise in fuel costs. Revenues rose 19% to â‚ ¬4325 million as traffic grew 5% to 75. 8 million passengers. Ryanair’s return on equity (ROE) is increased from 12. 7% to 16. % in fiscal 2012. In addition, the company’s free cash flow is increased from â‚ ¬-610. 9m to â‚ ¬702. 7m due to high net income and reduced capital expenditure. Mission Ryanair' mission is to â€Å"become Europe’s most profitable lowest cost airline by rolling out our proven ‘low-fare-no-frills’ service in all markets in which we operate, to the benefit of our passengers, people, and shareholders†. To emphasis its focus on low fares, low frills, the CEO has stated, in response to criticisms of Ryanair's sub-standard customer service, that â€Å"any worthwhile passenger service commitment should involve commitments to low prices and high punctuality†.Ryanair has the cost minimizer's aim of generating the most benefit to both its shareholders and its passengers through offering the lowest fare service. It offers customers the choice of exactly which services they want to pay for rather than forcing them to pay a high price for the bundle of services the airline wants to offer, as legacy carriers usually do. Passengers benefit from paying less money by selecting and purchasing only the services they need. As a result, Ryanair is able to attract more cus tomers, which helps Ryanair to grow its market and profits. Goals and Objectives Generate greater passenger traffic through offering low fare services. †¢ Expand the air passenger market and network by opening up new bases and routes. †¢ Capture a larger market, such as by entry to the US airline market. †¢ Gain additional profits through increasing passenger traffic while keeping its cost base low. †¢ Maintain its low cost leadership position through continued cost efficiencies. Stakeholders There are many stakeholders involved in Ryanair’s business. As Table 1 shows, they have different expectations toward and demands on Ryanair. TABLE 1: Organizational Stakeholders Stakeholder Group |Group Demands / Attributes | |Product Market | | |Competitors |They want to carry more passengers at higher fares and would like to reduce Ryanair's market share. | | |They would like regulation to force Ryanair to offer travel agent commissions. | |Travel Agencies |They would like to organize Ryanair staff. | |Customers want the lowest fare price, and luxury services at no extra cost. | |Trade Unions |Boeing, Airbus would like to Ryanair orders at list prices. Airports would like regulations allowing | |Customers |them to charge higher fees to airlines, and to collude on capacity management. | |Suppliers |Legislators want to avoid high levels of controversial public complaints, and want higher airport and | | |route taxes. | | | |Government | | |Capital Market | | |Shareholders |Shareholders want to see Ryanair’s market and profit increased. |Banks |Banks want Ryanair to make loan payments in full on time. | |Leasing Company |They want Ryanair to lease more planes, i. e. expand routes. | |Organizational Market | | |Employees |Employees want higher income and better benefits | |Managers |Managers want to effectively use the human and capital resources of the company to meet the goals and | | |objectives set by top executives. |Top Executi ves |Maintain Ryanair’s cost-leadership position to gain profit while looking for more opportunities to | |(Michael O'Leary) |further expand its market | EXTERNAL ANALYSIS General Environment Demographic Segment: Airline travel passengers are mostly aged 18 to 65. Among them, passengers of age 25 to 55 years account for almost 75% of the total. The ageing of the post-1945 baby boom generation has reduced the numbers in the older higher income segment of this demographic.The resulting tendency is for a greater proportion of air travellers to be younger and less affluent and more oriented toward lower cost transport as opposed to seeking a luxurious flying experience. Political/Legal Segment The political and legal issues that concern Ryanair include regulations of regional and national governments and the European Union (EU), various legal actions, terrorism and security. Because many airlines are fully or partially owned by national governments, the airline industry has been affected by political regulation of both operation and ownership.For example, the EU regulations charging all airlines for their carbon emissions, and the rules on flight and duty time limitations, both increase the operating costs of Ryanair. Furthermore, O'Leary's ambition to start an ultra-low cost transatlantic airline using Aer Lingus planes and US airport landing rights has been blocked by the European Commission's Merger Office. The Commission has refused to allow Ryanair to go ahead with purchase of control of Aer Lingus. In addition, the threat of terrorism has increased insurance and security costs in the airline industry. Economic SegmentThe global economic recession and fuel price increases have greatly affected the European airline industry. The recession has impacted the purchasing power of consumers. Ryanair’s low cost strategy has enhanced Ryanair’s ability to compete in these conditions. Through offering low fares, Ryanair enables airline passengers to continue travelling despite the economic crisis. The floating exchange rate also has a direct effect on Ryanair’s profitability. Ryanair collects fares in various currencies and has its expense mainly in US dollars for fuel and in Euros for labour.In addition, the number of airline passengers could decline if their national currency loses value. Ryanair uses futures and options to hedge its fuel price, foreign exchange risks, and financing interest cost. The price for 90% of Ryanair's forecast fuel requirements for fiscal 2013 is hedged. Hedged prices for 2013 are significantly above 2012 prices. Socio-cultural Segment Due to changes in traveller’s behavioural  and psychological patterns, the European airline industry has changed from traditional patterns.People’s perspective towards air travel has been changed by the low cost revolution of air fares in Europe. Air travel is no longer being seen as expensive and is now accessible by low income people. Consequ ently passenger traffic in the Europe airline industry has increased. Ryanair's initial routes from Ireland to England were intended to provide a service to ethnic Irish people who had migrated to England to work due to lack of jobs in Ireland, but who still had most of their family in Ireland and wanted to visit often. Technological SegmentAdopting advantageous technologies has helped Ryanair constantly reinvent its processes to maintain its low cost advantage. For example, by using its online booking system, Ryanair reduced its distribution costs by eliminating travel agency commissions. Better technology has also allowed other transportation industries to cut costs such as the innovation of lower fuel consumption cars and high speed trains. These changes both increase the competitiveness of the substitutes for airline travel and also increase the complementarity of airline and other travelling tools.Global Segment Globalization increases the demand for international air travel. T here are an increasing number of people travelling between counties for work or to take vacations in foreign countries. Industry Environment Bargaining Power of Suppliers The bargaining power of Ryanair’s aircraft suppliers is relatively high. Because Ryanair wants very low prices and many special conditions on aircraft purchases, so Boeing has refused to extend their supply contract with Ryanair, and Airbus has not been interested to seriously negotiate with Ryanair.Moreover, the switching cost of changing supplier for Ryanair is moderately high due to the significant amount of expense needed in terms of pilot, mechanic retraining and spare parts inventories. Ryanair is reportedly negotiating to buy the new C919 aircraft being developed by COMAC, a Chinese manufacturer, due to its greater amounts of seats and the lower fuel consumption. This availability of this substitute increases Ryanair’s bargaining power with Boeing. Ryanair’s bargaining power with its sup pliers of airport services is high, due to the current overbuilding of regional airports.Bargaining Power of Buyers The bargaining power of Ryanair’s buyers is high. The competition in the European short haul airline market is very intense, and many airlines have cut their cost in response to deregulation and availability of new cost saving technologies. Though Ryanair offers travel fares to passengers at very low prices, there is low switching cost for customers to change to another airline. The lack of brand loyalty in the air travel market increases buyer’s bargaining power. Threat of EntryThe threat of new entrants in the European short haul air travel market is high due to the relatively low cost of entry and the commodity nature of the capital required. However Ryanair has achieved economies of scale which would be difficult for a new entrant to achieve. Ryanair has a large network which would require a moderately large capital investment to duplicate. Availabili ty of access to some routes is another barrier for new entrants due to the intense competition for primary routes and primary airport landing rights for some routes. Threats from Substitute ProductsThe threat of substitute products and services for Ryanair is relatively low. Substitute services of Ryanair include trains, ferries, cars, as well as other low fare airlines. However, according to the record, it was shown that usually the tickets of train, bus or ferry are more expensive than Ryanair’s flight tickets. According to Ryanair's 2012 financial report presentation, Ryanair's average ticket price including bag is â‚ ¬45 (2013Q3 â‚ ¬50) and its closest price competitor's average ticket price is â‚ ¬71 (2013Q3 â‚ ¬79). This shows the threat to Ryanair's from substitute low ost airlines is relatively low as they are unable to achieve Ryanair's economies of scale and offer similar fares. Competitive Rivalry The competitive rivalry for Ryanair in the airline marke t is high. Its competitors include Aer Lingus, easy Jet, Air Berlin, Whizz, IAG/British Airway, and Lufthansa etc, the carriers which also offering low fare flights. Many airline companies have lowered the prices of airfares to avoid losing more market share. Competitor Analysis An analysis of major competitors, Aer Lingus, Easy Jet and British Airways is shown in Table 2.TABLE 2: Competitor Analysis | |Aer Lingus |Easy Jet |British Airways | |Future Objectives |Aer Lingus focus on generating revenue per |Easy jet wants to build strong |British Airways want to become the | | |seat rather than maximization of load |number 1 and 2 network positions |world’s leading premium airline by | | |factor as well as more emphasis on |while maintains its cost advantage. offering the best customer services. | | |partnerships and connectivity. | | | |Current |Moving to discount airline model, focusing |Easyjet focus on primary airports, |British Airways focus on satisfied | |Strategy |on pr imary airport routes. Focus on serving|and especially slot constrained |customers.It provides high level | | |Irish travel to visit relatives in New |airports, to provide service on the|premium tickets and offers first class| | |York, Boston and Chicago areas of US. |top 100 routes in Europe |ticket holders access to premier | | | | |lounges. | |Assumptions |They assume that low fares are mbedded in |They assume passengers want |They assume that customers will like | | |the Irish market place. |convenience. |to pay more for a better and | | | | |outstanding service. | |Capabilities |Aer Lingus operates 43 planes with an |Easy Jet has 214 planes flying 605 |British Airway has a fleet of over 245| | |average age of 7. 3 years.Carries about 10 |routes serving 133 airports with 23|aircraft over 600 destinations | | |million passengers per year on 92 routes. |bases, which makes it the 4th |worldwide. It operates in engineering | | | |largest short haul carrier in |provides engineering se rvices to BA | | | |Europe with 8% market share. |and many other airlines. |General Notes |Aer Lingus is the lowest fare long haul |EasyJet focuses on low fares |It is the flag carrier airline of the | | |airline in Europe, partly due to having to |without removing the services which|UK & the largest airline in the UK | | |compete with Ryanair on 46 routes. |are standard on most airlines. |based on fleet size. | Analysis of Interaction of External Force In summary, the external environment provides Ryanair both opportunities and risks.Though some political issues limited its operation and the intense competition in the airline industry poses some threats to Ryanair, the company has great opportunities to grow. The demand for air travelling is increasing as the reduction in fares has expanded numbers of passengers who can afford air travel, and existing travellers are choosing low cost carriers due to the economic recession. Ryanair has put itself in the right position to generate pa ssenger traffic and market shares. INTERNAL ANALYSIS Resources Tangible ResourcesAirports: Ryanair has established distribution channels with low cost and uncongested airports, which enable it to deliver a 25 minute turnaround, which helps to create Ryanair’s competitive advantage. Not only secondary airports, Ryanair’s primary airports also delivered it a great value. Locations: More than 1,500 routes across 28 countries in Europe and North Africa to 178 airports (of which 57 are ‘bases’, where Ryanair bases aircraft and crew). Aircraft Fleet: Ryanair has a fleet consisting of a single aircraft type, the Boeing 737-800.The average age of its 305 aircraft is around 4 years, which is younger than the 9-11 years of typical European airline carriers. This gives advantages in terms of fuel efficiency, maintenance costs and customer perception. Ryanair also benefits from its planes higher seating capacity (189 seats per aircraft, compared with Easyjet’s 156 on A319s and 174 on A320s). Financial Resources: The financial resources of the company come from the Ryan family, shareholders, investors and creditors. In addition, Ryanair has a high cash flow balance, which enables it to make emergency adjustments or further investments.In addition, Ryanair has the Aer Lingus shares with a market value of â‚ ¬150 million which could be converted to cash. Organizational Resources: Very sophisticated and precise controlling and coordinating systems to allow high operational efficiencies including shorter aircraft turnaround times than competitors. Technological resources: Online booking and checkin system which allows near elimination of airport checking counter costs. Intangible Resources Human Resources: Ryanair employs approximately 8,388 employees, as of March 31, 2012, including 1,636 pilots and 2,867 cabin crew employed on a contract basis.Ryanair’s Brand Recognition: Ryanair has a strong brand image as a cost leader and no-fri lls carrier. Rights: The landing rights and airport terminal slot rights for Ryanair as well as the government approvals to fly each particular route. Innovation Resources: Ryanair's senior management team has a strong capacity to constantly innovate and to cut costs by negotiating with suppliers to pressure for supply cost reductions and to change service routes to drop high rising cost suppliers in favour of low cost suppliers. The senior management team has the capacity to innovate by nbundling the components of major airline service and offering the components individually allowing travellers to choose lower cost combinations. Innovative use of secondary airports distant form major cities allows Ryanair to profitably offer ancillary car rental and bus and accommodations services through the online booking and ticketing system. Capabilities Primary activities Inbound Logistics: Ryanair’s main supplier, Boeing, provided Ryanair discount reported as approximately one third o ff for purchasing aircraft.Ryanair outsources the labour, airport services, and employee training they need at low cost. Operations: Ryanair provides â€Å"low cost no frills† airline service. About 50% of Ryanair’s flight crew are contractors employed only when required. Ryanair uses uncongested airports and only makes point to point trips. Outboard Logistics: Ryanair has quick 25 minute aircraft turnaround times. Ryanair has developed an online booking, ticketing, and confirmation system which eliminated the role and margin of travel agents taking the Ryanair service direct to the traveller.Marketing and Sales: Ryanair has the biggest website in Europe which allows them to do the marketing- internet sales. They also generate ancillary revenues by selling products in flight and encouraging customers to buy alliance services such as hotel bookings, car rentals and travel insurance etc. Service: Ryanair provides limited free services to passengers, and a full variety of onboard and travel services is available to customers for purchase. Customers decide which services they want to pay for. Support ActivitiesManagement Information Systems: Ryanair has efficient MIS systems to minimize airport turnaround times and to very tightly control on-board fuel inventories to minimize the cost of carrying excess fuel carried any flight. Firm Infrastructure: Ryanair has 57 bases. The cost of Ryanair airports are low due to its use of airports are mostly uncongested secondly airports. Ryanair has only one type of aircraft (Boeing 737-800). Therefore, Ryanair only trains pilots to fly one type of plane, which cut costs of training employees.Human Resource Management: In order to reduce costs, Ryanair pays relatively lower salaries to employees than other airline companies. The employees are paid by the hour on contracts. Ryanair employees get no benefits from Ryanair, but pilots like Ryanair because they can build their hours of experience quickly and be promote d to senior pilot positions. Technological Development: Use of online booking by Ryanair reduced their costs. In addition, by introducing self-check service to the passengers, Ryanair was able to reduce staff and cost. Procurement: As Ryanair only provide services, they have to outsource the material they need, such as fuel and equipment as well as leasing some operated aircraft. Core Competencies Ryanair has the following core competencies based on the VRIO framework: | |V |I |R |O | |Fleet of 294 -737-800s |Very fuel efficient and |Boeing list price of $90 |No competitor has as large |Ryanair has organized a 1500| | |about 4years average age so|million per plane or $26. |a fleet of short-medium |route network and short | | |low maintenance costs |billion for a similar fleet|haul fuel efficient jets |turnaround times to maximize| | | | | |the flying time of the fleet| |Supply chain management and |Forcing irports to compete|Very costly to imitate the |Competitors try to do this |Or ganized to operate the | |operations management |on fees for Ryanair's |scale of Ryanair's |also but Ryanair does it |fleet of 737-800s on | |including MIS systems |business and forcing Boeing|operation of 1500 routes |better |whatever routes offer low | | |to reduce prices on their |between 178 airports, so | |costs | | |huge order of 737-800s are |smaller network operators | | | | |keys to Ryanair's low cost |have less bargaining power | | | | |structure |with airports | | | |O'Leary's strategic vision, |O'Leary's strategy is the |Not available in the market|There is only one O'Leary |O'Leary is dedicated to | |marketing strategy and PR |basis for the company's | | |building â€Å"ultra-low-cost† | | |profitability.His | | |airlines | | |controversial PR saves | | | | | |millions in advertising | | | | | |costs | | | | Performance: Ryanair’s performance compared with its main competitors: | |Ryanair |Easyjet |Aer Lingus |British Airways | |Revenue |US$6. 35B |GBP 3. 85B |â‚ ¬1. 39B |â‚ ¬16. 1 B | |Operating Margin |15. 3% |8. 1% |3. 94% |3. 2% | |Profit Margin |12. 54% |6. 62% |2. 44% |3. 49% | |ROA |5. 59% |4. 74% |1. 90% |3. 44% | |ROE |18. 99% |14. 58% |4. 07% |13. 21% | |Market Cap |US$11. 51B |GBP 4. 18B |â‚ ¬0. 679 B |US$ 6. 7 B | STRATEGYBusiness Level Strategy Ryanair follows a cost leadership strategy. By controlling the cost of operations, Ryanair has a low cost base, which enables it to offer the lowest fares to passengers with acceptable service across Europe. Corporate Level Strategy Ryanair has a low-level of diversification. Ryanair's dominant business is passenger transport, with ancillary revenue from its ancillary services. According to Ryanair’s 2012 annual report ancillary revenue accounts for about 25% of the total revenue, while 75% of revenue come from is major business, which is scheduled airline service. International Strategy Ryanair follows a global strategy.Ryanair offers standardized services to all passengers across Europe, while the strategic decisions centralized in headquarters office to achieve economies of scale. Ryanair does not customize its products to individual national or regional market demands. Cooperative Strategy Ryanair has cooperative or alliance relations with a broad range of hotel and other accommodation providers, as well as with airport car rental companies and airport bus transport companies. Ryanair offers the services of these companies through the Ryanair website and the companies rebate a portion of the revenue to Ryanair. SYNTHESIS Ryanair has the strengths, and weaknesses, and faces the opportunities and threats as shown in Table 3: Table 3: SWOT Analysis |Strengths |Weaknesses | |Customer Service |Low Fares: The advantage of Ryanair’s low cost base |Low Frequencies: Ryanair offers less frequent flights on some | | |allows it to offers the lowest average fares in |routes and often schedules departures at low demand times, | | |European shor t haul markets. It was report that |which may not be convenient to passengers, but provides lower | | |Ryanair’s fares are about 37% below those of easyJet. |costs and faster turnaround times. | | | |Brand Perception: Recently published surveys vote Ryanair to be| | |Unbundling Services: Unbundling of inflight services |one of the weakest brands in the European airline industry. | |allows Ryanair to expand the travel market by serving|Ryanair offers limited free services to passengers and the | | |lower willingness to pay customers, which supposedly |media portrayal of Ryanair is often of a mean and | | |is a large segment of Ryanair’s home market in |money-grabbing. | | |Ireland. | | | |Punctuality: Ryanair has the best punctuality | | | |compared to other airline companies, since Ryanair | | | |only offers point-to-point short haul service. | | |Financial Resources |Cash flow: According to Ryanair’s 2012 annual report,|Seasonality of Earnings: Many Ryanair ’s customers are vacation | | |Ryanair has Euro 3. billion in cash, which allows it |travellers who tend to travel in the July to September period | | |to make further investment. |so Ryanair’s earnings are highly seasonal. | |Network: Economies |Ryanair flies more than 1,500 routes across 28 | | |of Scale |countries in Europe and North Africa, 178 airports of| | | |which 57 are bases. It carried almost 80m passengers | | | |in year 2012 with a market share of 12%.It has the | | | |lowest cost per passenger, which is one third lower | | | |than its major competitor EasyJet. | | |Network: Secondary |Due to the use of secondary airports and its |Many secondary airports are many kilometres away from a major | |Airports |excellent operations systems, Ryanair has a 25 minute|city, which may cause travel inconveniences to passengers. | | |turnaround times, which allows the airline to | | | |maximise aircraft utilisation. | |Fleet |One type of aircraft, the Boeing 737- 800 |Fleet is not certified for transatlantic service expansion | | |Largest short haul fleet in Europe 305 aircraft | | | |Average age of fleet 4 years (9 to 11 years for | | | |competitors) gives better fuel efficiency, and lower | | | |maintenance costs. | | |Executive Management|Introduced a series of innovations to achieve low |Portrayed by the media as mean and uncaring. | |costs and economies of scale | | | |Eliminated check-in desks; put advertising on | | | |boarding passes and overhead bins; persuading | | | |passengers not to check in hold baggage | | | |World leading skill in negotiating low cost supply | | | |agreements | | |Management Systems |Highly efficient MIS and standard operating | | | |procedures to efficiently operate at lowest costs. | | | | | | | |Opportunities |Threats | |Customers |The CEO of Ryanair has talked of plans for a |Ryanair’s competitors may learn how to imitate its value chain | | |long-haul transatlantic service under a n ew company |and copy its operation strategy.In addition, by focusing on | | |named â€Å"RyanAtlantic†. Purchase of Aer Lingus is a way|efficiency, Ryanair may overlook changes in customer | | |of gaining landing rights at New York, Boston and |preferences. | | |Chicago airports, which are favorite destinations for|By using the cost-leadership strategy, Ryanair needs to carry | | |Irish people travelling overseas to visit their |the risks of losing competitive advantages due to the dramatic | | |relatives. In addition, Aer Lingus has transatlantic |change of technology. | | |certified aircraft. | |Supplier Competition|Ryanair has the opportunity to get a better deal on |Airport and navigation charge increases: Increased airport | | |aircraft ordering. Ryanair has indicated interest in |charges in Spain’s AENA airports and Italy's ATC airport will | | |buying the C919 aircraft as a strategy to negotiate a|boost the ex-fuel unit cost. | | |better deal with Boeing. |Air t ravel taxes: Increases in air travel taxes reduce the | | |Stansted Airport: Ryanair cut its flights at Stansted|demand of air travel.Airport travel taxes are charged | | |Airport as a result of increased airport charge |independently of ticket price and therefore make up a higher | | |increases, and offered that if the airport charges |percentage of lower priced short haul tickets. Ryanair's costs | | |are reduced Ryanair will reverse the reductions in |are affected proportionately more by these taxes than are its | | |service levels and frequency at Stansted Airport to |higher fare competitor's costs. | | |transport about one million more passengers per day |Fuel price and currency: The price of fuel is highly volatile. | |by using spare fleet capacity shifting some flights |The international oil market is priced in US dollars so fuel | | |and routes from competing airports to Stansted. |expenses are in US dollars. Ryanair does not have US dollar | | | |revenues, and therefore mu st hedge its US dollar costs against | | | |its British Pound and Euro revenues using futures, options, and| | | |currency swap. |Government |Regional or local governments build airport capacity |Possible regulatory backlash in response to bad publicity about| | |in excess of local flight demand to attract tourism |service levels | | |dollars provide an opportunity for Ryanair to obtain | | | |very low cost or subsidized airport services. | | SWOT Matrix | |Strengths |Weaknesses | |Opportunities |Low cost base and low fares help to attract passengers |Low flight frequencies reduce the appeal of Ryanair | | |and grow its market. services for some travellers | | |Ryanair’s strong cash flow enables it to make further |Low level of free services reduces the attractiveness of | | |investment in aircraft |Ryanair flights for some travellers | | |Ryanair's strategic negotiating ability allows it to take|Unfavourable publicity causes regulator resistance to | | |advantage of secon dary airport suppliers to provide air |Ryanair operations | | |services to major cities at low cost | | |Threats |Large pan-European network allows Ryanair to shift |Revenue seasonality with lower winter time cash flows | | |business out of regulatory jurisdictions which raise |could make fuel price fluctuations more problematic | | |travel taxes or airport fees |because fuel prices tend to have a seasonal peak during | | |Ryanair's expertise at hedging fuel and exchange rate |October to January | | |fluctuations allows it to minimize the impact of oil |Ryanair’s disregard for customer luxury and convenience | | |price fluctuations compared to legacy airlines |could worsen declines in customer numbers during periods | | | |of economic prosperity when higher income levels give all| | | |travellers more choices of travel service level. | SWOT Fit with StrategyRyanair’s cost leadership business strategy is built on (1) senior management’s strength at negotiating lo w cost supplier agreements, and (2) unbundling air travel services from basic transport fares to allow lower willingness to pay customers to choose lower cost service. The cost leadership strategy and ability to negotiate lowest cost supplier agreements also puts Ryanair in position to exceed competitors network scale and thereby achieve competitively superior economies of scale. Ryanair’s focus on cost leadership minimizes the negative effect that their disregard for customer inconvenience could have on a differentiated supplier. In summary Ryanair’s strategy is a good fit with its strengths, weakness, opportunities and threats. ANALYSIS OF ALTERNATIVESAlternatives 1. Shift to primary airports and move upmarket by focusing on primary airports and increased customer service levels and fares, competing more closely with EasyJet. 2. Expand secondary airports network, with the same customer service level but the lowest price. 3. Expand secondary airport network and upscal e the customer services with a bit higher price. 4. Expand Network to US through buying Aer Lingus. 5. Expand Network to US Irish destinations by buying planes, routes and airport slots. 6. Develop a greenfield network in a non-European regional market. Criteria for Analysis of Alternatives †¢ Increased Profit / ROE †¢ Financial Feasibility Maintain low cost leadership / Increase Economies of scale †¢ Government Issues Evaluation of Alternatives | |Government Issues |Profit/ ROE |Economic of Scale | Financial |Total Point | | | | | |Feasibility | | |1. Shift to Primary Airports (Increase |3 |2 |2 |2. 5 |9. 5 | |Price) | | | | | | |2.Expand Secondary Airport Network |4 |5 |5 |4 |18 | |(Low Price) | | | | | | |3. Expand Secondary Airport Network |4 |3 |3 |3. 5 |13. 5 | |(Upscale Services) | | | | | | |4. Expand Network to US through buying |1 |5 |5 |5 |16 | |Aer Lingus | | | | | | |5.Expand Network to US Irish |2 |3. 5 |4 |3 |12. 5 | |destinations | | | | | | |6. Develo p second Network in |3 |Short run: 2 |Short run: 2. 5 |2 |Short run: 9. 5 | |non-European regional market | |Long run: 5 |Long run: 5 | |Long run: 16 | Explanation of Evaluation: 1. Issues of government approval of new runs and cost of buying airport slots.As the primary airports will charge higher fees and tend to be more intensely competitive, the cost and fare price will be increased with a higher customer services level. The primary airport routes are served by many discount fare and major airline feeder service competitors 2. The lowest cost way to achieve additional economics of scale. 3. Shifts the company cost structure to a higher cost curve and may reduce its economies of scale. 4. Issue of European Commissions Merger office disapproval 5. Combination of regulatory issues and cost of acquiring transatlantic certified aircraft. 6. High start-up cost for a greenfield network and time required to build up revenue and profit. Recommended AlternativeBased on the evaluation, the best alternative for Ryanair is to continual to develop its network serving secondary airports, as it will generate more profit while and achieve greater economies of scale. Short Term Continue with company’s current strategy of expanding the network of secondary airports served. Maintain current levels of customer service and continue to emphasize the value of the levels of customer service provided to the Ryanair customer niche to avoid regulatory backlash. Long Term The secondary airport network in Europe will eventually be saturated by Ryanair’s expansion and to continue growing faster than demographic growth Ryanair will have to expand into other markets.The recommended alternative is to make greater accommodations to the European Commission Merger Office regarding routes where Aer Lingus and Ryanair currently compete in order to gain the Merger offices approval for Ryanair to buy Aer Lingus. This will allow Ryanair to expand to the US market with guaranteed prof its from the Irish traveller traffic visiting relatives in Boston, New York, and Chicago. Further the cost to buy the additional Aer Lingus shares to give Ryanair controlling a share in Aer Lingus is very inexpensive compared to other overseas expansion options. If the European Commission Merger Office does not give approval then Ryanair should consider development of an alternative regional network. IMPLEMENTATION Action PlanExpand the secondary airport network by expanding service to the Balkans, Macedonia and Morocco. |Time Line | |   |April |May |June |July | |Average fare: |Euro 50 |Euro 51 |2% |Low competition in new route area allows | | | | | |higher fare level | |Costs per passenger excluding |Euro 27 |Euro 25 |-7. % |Using excess plane capacity so reduces | |fuel: | | | |average fixed cost | |Revenue per passenger: |Euro 51 |Euro 51 |0% |Travellers in the new route area very frugal. | |Passengers per year: |75. 8 million |79. 6 million |5% |New route volume | |ROE: |16. 9% |18. 4% |1. 5% |Higher utilization of aircraft results in | | | | | |higher ROE | By meeting the figures in the Target column Ryanair will have succeeded in expanding its revenues, profits and economies of scale.

10 Ways How Photoshop Changed History of Photography

10 Ways How Photoshop Changed the History Of Photography by Steven Campbell on Apr. 2nd, 2010 In the past, you had to be very patient as a digital photographer. If you wanted to catch something spectacular you had to carry your camera with you everywhere until you saw something special. To capture a sunrise you had to get up at the crack of dawn. Models had to spend hours in the makeup room and studios had to be well lit. Everything I just mentioned changed instantly with the invention of Photoshop.Photoshop has changed the history of digital photography. Nowadays, when you look at an amazing photo or image your first impression is still â€Å"wow† but your immediate second thought is â€Å"that has to be photoshopped†. When you think of the history of Photoshop and everything Photoshop did to change the game, it’s pretty insane. In this article, I’m going to cover some of the ways how Photoshop has changed digital photography forever. How We See the World [pic] The most significant effect Photoshop has had on us is how we see our world.Digital artists and manipulators know how to take an ordinary photograph and turn it into something completely different and extraordinary. [pic] Images that are photoshopped really have me doubting reality sometimes. Whether they have to do with people, places, or things, you can’t argue with the creativity and time that goes into some of these images. They give you a new perspective on the world. How We View History [pic] Aside from the historical significance of digital photography, Photoshop has changed the way we view history in general.Historical photographs can be photo shopped just as easily as any other image, which leaves you wondering if you are viewing a historical painting or a modern piece of Photoshop art. How We Advertise I bet you were wondering when I was going to get to this part. Advertising has changed forever due to image manipulation. You can’t look through a magaz ine without seeing dozens of photo shopped ads (I dare you to try). [pic] Think about what this means. To me, this says that companies that used to run text ads or had to hire a photographer to take their photos can now just pay someone to make their ad on a Mac or PC.Photoshop has changed advertising and business as a whole. How We View the Human Form [pic]Photoshop has also changed our image of what the perfect person looks like. With models and celebrities – most notably – we have seen Photoshop go into every magazine cover and spread in modern existence. Allow me to touch on a few examples of this. Erasing Blemishes Ever wonder how your favorite actor looks so perfect all the time? Well, they don’t. Image editing has led us to believe that some people are actually perfect in appearance, when in reality these photos have been doctored.You want to look perfect in all of your photos? Start learning Photoshop. Adding Style [pic]You can do anything you want to a person on Photoshop. Hair color, eye color, fashion, you name it – you can change everything. Age Progression Want to see what Katie Holmes might look like in a few dozen years? Someone’s already thought of that. Thought of that. [pic] You can use Photoshop for practical means like predicting age progression. It takes a bit of talent, but nonetheless it’s a possibility.How We Witness Nature [pic] If you’ve ever seen Planet Earth on the Discovery Channel you know that there are some beautiful places on this planet with some crazy looking creatures living there. Photoshop has allowed artists to get even more creative with nature and create their own species and landscapes. See the skull in that tree? What We Find Humorous [pic]A lot of photo shopped images are meant to be funny. Creators use irony and humor to adapt digital photos to make us laugh. To Make Fantasy Reality pic]Aside from all the real world examples of Photoshop history, images are constantly created to invoke our imagination. When you look at one of these pieces of art you are able to visualize the artist’s dreams and fantasies. What did we do before this? Conclusion These are the 10 ways I’ve noticed that Photoshop has changed the history of the digital photograph. There’s got to be more but these things just don’t jump out at me anymore due to the norms I’m accustomed to in the Photoshop era. What do you think about Photoshop? Has it affected your life in some way?

Customer Service Essay Example | Topics and Well Written Essays - 750 words

Customer Service - Essay Example It is under the medical services industry and it is both a public and private health center as it houses both private and public wings. Sunrise Health Center has an in-patient bed capacity of sixty beds in four wards, with fifteen beds in each ward. The medical facility has fifteen employees with two in the senior management and two in junior management levels. Four employees are support staff where each is assigned to one ward. The other seven employees are medical staff who attend to patients and provide other medical services. The medical facility has a laboratory and a pharmacy which are manned by staff who are on a rotating work schedule. In-patients services are offered on a twenty four hour basis while the out-patient services are available during the normal working hours of 8.00am to 5.00pm from Monday to Saturdays. The out-patient section of the facility remains closed on Sundays and public holidays. The nearest hospital to Sunrise Health Center is St. Mary Mission Hospital which is twelve and a half miles away to the south. Sunrise Health Center refers all the complicated medical cases to this mission hospital and also relies on the referral hospital for supply of some drugs that are not readily available. St. Mary Mission Hospital also refers some of its patients to the medical facility for check-ups and other regular visits. This mostly happens for patients who live near Sunrise Health Center. Customer service in Sunrise Health Center seriously needs improvements. Some of the customer service issues identified are; lack of customer confidentiality, poor communication skills among the medical staffs, slow response to emergency medical cases, late opening and unavailability of drugs in the pharmacy. There have been two cases in the health center that were related to customer confidentiality. The first case involved a patient who developed breathing problems at work and was rushed to the health center by two of his

Measuring the Effectiveness of the Forum for Youth Investment Program Article

Measuring the Effectiveness of the Forum for Youth Investment Program - Article Example However, the perception of the potential outcome of such initiatives, as well as the prospect of having the projects realize the aforesaid interest needs to be validated. This interest remains best defined via the presentation of a possible avenue upon which the program may be evaluated. A possible path towards the realization of this interest anticipates the consideration of several critical principles. Such statutory guidelines offer an insight into the potential of the program in achieving the considered intent. Programs such as Forum for Youth Investment need to be vetted in order to be allowed to gauge the effectiveness of the initiatives on the ground. They need to express an ultimate potential or capacity of undertaking their principle agenda exponentially. This evaluation seeks to detail on this concern with the hope of presenting a reliable image of the potential of the Forum for Youth Investment. The evaluation hopes to be able to propose methods and measures that may allow for the reflection of the abilities accorded to the program This is deemed to be of essential merit to the initial developers that sought to use the program for the evaluation of their ideas (Yohalem & Wilson-Ahlstrom, 2009, 16). Additionally, the findings will be of benefit to the youths since they will offer useful information on the available vetting programs. Having the Forum for Youth Investment unevaluated allows for the reduction of its potential. The design will nest its focus on the principle structure of the program. This will espouse a top-down approach. The evaluation will consider the output of the program. This will form the base upon which to evaluate the adopted procedure and protocols. The evaluation will simply seek to identify the possibility of achieving the noted result from the adopted items of the check. The program has four levels of outcome.

Management Essay Example | Topics and Well Written Essays - 2500 words

Management - Essay Example Various undertakings require examination before undertaking them so as to enable for sound judgment. Figuring out objectives and then setting up a plan on now to reach the targets is one key technique of efficient planning. One major planning tool that happens to be efficient is enquiring from the individuals carrying out the various tasks for their input. Making it happen happens to be the next procedure of the management process after obtaining a plan. The management ought to ascertain that everything required to implement to the management plan is set or is available when required. It is imperative to confirm that everyone comprehends their role and significance their role contributes to the general success. The following procedure involves telling individuals whatever they are required to perform. It is crucial to make certain everything is running according to plan. When there exists a setback, management is charged with the role of stepping in to modify the plan. Managing is no t a simple task. Nonetheless, it can be performed successfully with the experience being very rewarding. In the management process, matters that could be derailing the efficiency of individuals often pop up from the actions they are involved in that are time consuming. Internet email tends to be abused by the individuals working for various organizations. It is in this light that this report is looking to examine the management reasons that lead to their decisions to banning the use of internal email within the organizations. This report also gives an example of some of the corporations or organizations that have resulted to the prohibition of internal email usage, highlighting whether the move is an effective tool for effective management (Daft, 2011, 123). Phones 4U administrator is part of the emerging team of management that has called to the end of staff facing up their work without engaging in the utilization of email. Phones 4U ironically commends the virtues of contemporary communications to customers, however, the staff has been prohibited from utilizing one of the world’s most inexhaustible tools of communication, email. The holder of this chain’s multi-millionaire commercial holding, John Caudwell has the faith that the 2,500 staff has wasted a lot of time receiving and sending emails, rather than adequate time dealing and serving the customers face to face. The owner believes the email prohibition resulted in a dramatic and affirmative effect. According to John Caudwell, the email was insidiously overrunning Phones 4U. There had been signs by the management and staff, as well, at the firm’s headquarters and its stores, that the email propagation was inhibiting their effectiveness. The time spent per day after the ban, as articulated by Caudwell, amounted to three hours, which translated to a saving of ?6m each month. The industry players analyzed the move by Caudwell as a means to rejuvenate Phones 4U in its quest to take on it s major competitors, such as Carpfone Warehouse. On the contrary, some market analysts view such measures by managements differently. After chopping the hard expenditures to the bone, focus has shifted to the malleable expenditure, the individual time spent on the practices of management that have for years gone by unnoticed. The requirement for outstanding managers is ever present. The unprocessed number of managers required is declining. This has been necessitated by the networks

RFID Impact on Supply Chain Management Research Paper - 1

RFID Impact on Supply Chain Management - Research Paper Example According to the research findings, radio frequency identification (RFID) tags are used to track assets, manage inventory and authorize payments, and they increasingly serve as electronic keys for everything from autos to secure facilities. RFID works using small (sometimes smaller than a fingernail) pieces of hardware called RFID chips. These chips feature an antenna to transmit and receive radio signals. So-called passive RFID chips do not have a power source, but active RFID chips do. RFID chips may be attached to objects, or in the case of some passive RFID systems, injected into objects†. Radio Frequency Identification (RFID) is a technology to recognize objects. This technology is for eternity classified as a technology similar to Automatic Identification and Data Capture (AIDC). AIDC consists of Barcodes, Biometrics, and Smartcards. Apparently, RFID and Barcodes technologies are considered as one of the key drivers in supply chain management operations to categorize obje cts or merchandise at various workflow stages. In the intervening time, Biometric and Smartcard technologies are employed for access control procedures, banking, and communication industry. The prime advantage of RFID technology is its ease of use and minimalism. RFID replaces barcodes and is a time saving, effective and reliable alternative. That is the reason why it is adopted and deployed in multipurpose applications i.e. Supply Chain Management (SCM), Inventory Tracking, Theft Protection, Location-based Services, Electronic Health Monitoring for healthcare systems, RFID integrated travel documents, payment systems, and context-aware applications. In recent years, this technology is flourishing robustly due to its extensive usability in upcoming technologies i.e. Ubiquitous Computing, Pervasive Computing, or Ambient Intelligence Solutions. RFID technology comprises of transmitters spreading electromagnetic technology in the environment to send and receive signals. The communicati on is conducted between two elements, transceiver, and transponder.

Is a philosophical science of metaphysics, such as Descartes, still Essay

Is a philosophical science of metaphysics, such as Descartes, still possible after Humes Enquiry concerning Human Understanding - Essay Example There are certain things which can be studied through physical sciences but things which are only based upon human understanding and rationality are discussed and studied under the branch of philosophical science called metaphysics. Rene Descartes is one of the renowned scholars of modern philosophy. He is specifically known for his book ‘Meditation on First Philosophy’ in which he presented his in-depth views about metaphysics. The three most important aspects discussed in his philosophical debate are the mind, body and the existence of God (Descartes). The concepts of metaphysics presented by Descartes were widely acknowledged for a long time period because the book raises questions regarding God and the soul while seeking logical answers and truth on the basis of reasoning (Descartes). However, in 1748 another philosopher named David Hume published his book ‘An Enquiry Concerning Human Understanding’ which proved to be a remarkable addition in the field of philosophy (Hume). This is primarily because of the fact that Hume’s work challenged Descartes. However, until today Hume’s work could not reduce the worth of Descartes’ philosophies. This paper aims to argue that the philosophical science of metaphysics such as the one presented by Descartes is still possible after Hume’s Enquiry concerning Human Understanding. Here, it is important to comprehend that ever since the time period of Descartes the field of philosophy is distinguished on the basis of rationalist and empiricist. On one hand rationalists are more concerned about metaphysics and questions related to God, nature of substance, matter, soul etc. (Descartes). They primarily try to answer these questions through reasoning but on the other side empiricists have been more interested in epistemology. This is further associated with the idea of experiencing different things and gaining substantial knowledge regarding the world. It

The current technology that we carry with us all the time is reshaping Essay

The current technology that we carry with us all the time is reshaping our personality and in the future it seems to endangerin - Essay Example Nonetheless, despite the positive effects of technology in society today, human beings have become slaves of technology, thus resulting in negative outcomes. Nonetheless, technology influences various aspects of human beings negatively, including shaping their personality, and this endangers the existence of the human race in future. According to a New York Times article written by Parker-Pope (WEB), technology has an ugly toll on human beings today. This mainly regards human personality, which has greatly been affected by technology in a detrimental manner. Today, there is the technological invention of high-speed internet, which most people use. There are different gadgets with fast-forward buttons, including many other types of technologies, which people use daily. Parker-Pope (WEB) therefore, argues that the use and dependence on this technology slowly shapes the personality of most human beings. According to Parker-Pope, â€Å"Some experts believe excessive use of the Internet, cellphones and other technologies can cause us to become more impatient, impulsive, forgetful and even more narcissistic† (WEB). ... Therefore, this makes life of people today resemble a chat room. Additionally, since most people spend most of their time with their devices and computers with internet, this has resulted in some people becoming addicted to the internet and to the cellphones and other gadgets, therefore, making technology to become like a drug. Technology has also led to the cutting-off of social interactions among people. People communicate more on their cellphones and through the internet, therefore, leading to less time of face-to-face interactions. More people spend time in chat rooms, and this is encouraged by the high efficiency of the internet and iPhones, as well as the anonymity of chat rooms (Parker-Pope WEB). In another article in the BBC News, by Coughlan (WEB), Coughlan argues that technology is presently ranked among some of the threats to human extinction. Humans develop technology; therefore, this might be a case of self-destruction, as observed by Lord Rees, who is a scientist, †Å"This is the first century in the world's history when the biggest threat is from humanity† (Coughlan WEB). Natural disasters, diseases, persecution, and environmental change might not lead to extinction of the human race, since humans have survived this throughout history. In addition, nuclear war might destroy a high number of lives, but some humans might survive. Nonetheless, the present era of technology has the highest capacity for destroying human existence in future. The major reason for this is the lack of control, which people exhibit in the development and use of technology. Therefore, the negative effects of technology are not controlled. People today have become more experimentative and have delved into areas that are unpredictable. For instance, experiments in machine

Compare and contrast the arbitration laws of two countries Essay Example for Free

Compare and contrast the arbitration laws of two countries Essay The significant increase in the role of international trade in the economic development of nations over the last few decades has been accompanied by a considerable increase in the number of commercial disputes as well. Today rapid globalization of the economy and the resulting increase in competition has led to an increase in commercial disputes. At the same time, however, the rate of industrial growth, modernization, and improvement of socio-economic circumstances has, in many instances, outpaced the rate of growth of dispute resolution mechanisms Keeping in mind the broader goal of exploring links between the quality of legal performance, this assignment is an attempt to critically evaluate arbitration in India as a legal institution and to judge the growth and development of the same and to see the exact footing of India in the international front a simultaneous comparison of the arbitral laws of USA to that of India has also been made. In this assignment, the evolution of arbitration law and practice in India has been explored. This assignment is divided into three parts Part 1 explores the evolution of Arbitral laws in USA and India, the underlying idea behind this is to see the process through which arbitration came into being and how the old is the law and its due development in the respective countries. Part 2 explores the present arbitral laws in light of The Federal Arbitral Act and The Arbitration and conciliation Act. Part 3 compares the laws and arbitral process in India with that of USA this part shows the similarity and distinction of the laws in both the countries and also highlights the common meeting point of both the laws. HISTORY OF ARBITRATION LAW IN UNITED STATES OF AMERICA Native Americans used arbitration as a means of resolving disputes within and between tribes long before Europeans journeyed to America’s Atlantic shores.However the use of arbitration was introduced in America by the revolutionary war by the colonists who had had business experience in Europe. The use of arbitration in the ports of Europe was already known at that time among maritime and trade businesses. The experience of arbitration as a means of dispute resolution which minimized conï ¬â€šict and allowed continuation of the business relationship was brought to Atlantic by the people coming to live and work in North America. In England, arbitration is a much older concept than the common law system, which the United States courts later adopted. In fact, in England arbitration was used as a common means of commercial dispute resolution from as long as 1224. George Washington, the first President of USA incorporated an arbitration clause in his will that basically stated that, ‘ if any dispute should arise over the wording of the document that a panel of three arbitrators would be implemented to render a final and binding decision to resolve the dispute.’ In the ï ¬ rst decade of the 20th Century, several major trade groups applied arbitration beneï ¬ ts of simplicity, speed and minimal enmity. When New York’s The Association of Food Distributors, Inc. (originally known as the Dried Fruit Association of New York) was formed, its bylaws included an arbitration panel for the resolution of disputes. This was done to reduce the risk that its disagreeing members in case of any dispute and after its settlement would find ,themselves unable to resume their business relationship.1 Until the early 1920s, the only law governing arbitration proceedings in the United States came from court decisions, some dating made in the cases in17th and 18th Centuries. In 1925, The Federal Arbitration Act was enacted. It was a recognition of the several beneï ¬ ts of arbitration and it thereby established a national policy which promoted arbitration.It was initially designed to overcome the judicial hostility that was existing towards arbitration which had evolved from the English courts. With the increasing industrialization and growth and development the reluctance of people to adopt arbitration decreased. With the rise in number of disputes mainly involving â€Å" a transaction of commerce† AMERICAN ARBITRATION ASSOCIATION was established by Moses Grossman in 1926 and an era of Alternate Dispute Resolution was started by Charles Bernheimer2 . The National Labour Realtion Act passed in 1930 marked the a steep rise in the concept and usage of Arbitration in USA. The second woeld war was the turning point for arbitration law in America the economic depression and arising conflict led to more and more dispute settlement by means of arbitration by the War Labour Board. A major milestone regarding Arbitration Law was Achieved in the 1970 when when the Uniform Convention on the  Recognition and Enforcement of Foreign Arbitral Awards (The New York Convention)3 became law in the United States by the addition of Chapter 2 to the Federal Arbitration Act.This convention is still effective and provides for International Arbitration Awards which is considered to be more reliable and consistent than the existing court judgement framework in the country. Bibliography LINKS REFERRED: Alternative dispute resolution Wikipedia, the free encyclopedia Development and Practice of Arbitration in India Has It Evolved as an Effective Legal Institution? – CDDRL www.uniformlaws.org/shared/docs/arbitration/arbpswr.pdf www.kaplegal.com/upload/pdf/arbitration-law-india-critical-analysis.pdf www.williamwpark.com/documents/Arbitral Jurisdiction IALR.pdf Conflict resolution research Wikipedia, the free encyclopedia www.utexas.edu/law/centers/cppdr/portfolio/2010 Symposium/Stipanowich New Litigation Final.pdf www.kaplegal.com/upload/pdf/arbitration-law-india-critical-analysis.pdf unctad.org/en/Docs/edmmisc232add38_en.pdf STATUTES REFRRED: The Abitration and Conciliation Act 1996 The Federal Arbitration Act 1925 United States Arbitration Act The Arbitration and Conciliation Act 1940

Assessment of how managing the human Essay Example for Free

Assessment of how managing the human Essay This part of assignment assesses how managing the human, physical and technological resources that have been researched so far can improve the performance of Marks Spencer. Human Resources Human Resources are the people (employees) in the business. Monitoring the performance of employees in Marks Spencer has showed the way to a number of advantages. These essential advantages are assessed below. The employees in Marks Spencer are being monitored by CCTV and therefore watched by managers or directors which led to an increase in customer focus. Monitoring employees makes sure that they are carrying out the job tasks correctly. This could be for the reason that employees do not want to upset and get embarrassed when their managers or directors are observing them through CCTV; as a result they try to work and perform to the best of their ability. Employees in the stores of Marks Spencer know that they are being observed and monitored throughout the work day so this encourages employees to serve customers more adequately as well as to provide assistance at all times. In addition, employees in the stores are likely to think that they could get bonuses and rewards if they perform to the best of their ability. For instance, Marks Spencer could give incentives during the work which would likely make employees encouraged and complete the tasks given because incentives usually motivate employees to work to the best of their ability on whatever tasks are they completing. Marks Spencer offers gift vouchers that are the perfect choice to help reward congratulate and motivate people in a way they will appreciate. Marks Spencer vouchers are perfect incentive to increase sales, recruit new customers and generate new business. This is the best way to promote performance from the staff and encourage more positive outlook in the workplace. These incentives include the sick pay leave if needed as well as the holidays. (See appendix 4) Employees that work in Marks Spencer normally have 20% off discounts of the products and items that they buy. In addition, in order to increase their performance they offer deals and voucher tickets to their employees who are working to the best of their ability. These bonuses, fair wages and discounts that employees get makes them work even harder which means the motivation increases. Human resources includes the need of Marks Spencer having suitable employees in the organisation that work in the store in order to increase the performance of the business. Therefore, Marks Spencer should employ correct employees with the right skills, abilities and experience to complete tasks to the best of their ability. Having appropriate recruitment process – making adverts the most attractive as possible and having clear job descriptions with clear tasks would possibly bring the right people to Marks Spencer. When they choose an employee or employees to work for a business they need to make sure that interview procedure is correct and that short-listing table is used in order to compare all the candidates and choose the best one when looking at the criteria. Marks Spencer needs to make sure that they get the person to work for them that is intelligent, respectful and diligent. Candidates that apply for a job in marks Spencer need to complete the application form on the Marks Spencer’s website (www.marksandspencer.com) where an applicant would fill its personal details, grades and achievements and the experience. Retailers like Marks and Spencer have complex recruitment needs and have to deal with high volumes of applications to fill a large number of similar positions. Marks and Spencer manages all applications for store jobs via WCN’s Applicant Tracking System. The system is based on complex two way integration with the Marks and Spencer HR system. The system allows candidates who are successful after applying and completing online tests, to book their own interview within an hour of completing their application. Stores input vacancies and give available assessment times on the Marks and Spencer HR system, this data is then transferred to the WCN system and displayed to candidates online. Therefore, candidates that are successful they are either going to be contacted with the assessment times where they are going to be given different tasks including team work activities. In addition, their interview is going to take place at some time in the day too. After assessment day, usually the candidates will be told either by phone, e-mail or letter whether they got the job or not. In order to increase performance of the business the employees that are already working in Marks Spencer would need to be trained from time to time as they will be kept up to date with their tasks and will know how to complete them correctly. Knowing how to complete tasks correctly will eventually give motivation to them because they will have more understanding when completing their tasks and duties. However, if employees would not be sure of how to carry certain duties then the managers would not be happy with their work. Therefore, an appropriate training would be suitable in order to solve this problem. Training will give knowledge to employees about their job and introduce new tasks or duties that are needed to be completed. When employees go off for training they are normally working as a team by working together and completing certain tasks together; as a result, they are likely to develop more team work. Each store in Marks Spencer has different groups or teams and each group or team has their own responsibilities and tasks. Because each team has their own responsibilities this makes them know what they are doing and how they are approaching issues during their work day. Marks Spencer also have team members whose responsibilities are divided because they are specialists in their job; therefore, this means that Marks Spencer is likely to achieve its aims and objectives consistently and obviously, on time. On top of that, the employees that are part of Marks Spencer’s crew also help to achieve the targets of Marks Spencer. This could be for the reason that managers or directors have a span of control on supervisors and sales assistants in Marks Spencer stores. As a result, having the span of control will mean that managers are in charge for setting duties and tasks, controlling and observing employees, for instance, sales assistants and supervisors. For the reason that this happens they have their own responsibilities and tasks that has to be met and there is no need to worry themselves about other employees’ responsibilities and tasks in the store. As a result target achievement is met by a better task focus that takes place. In Marks Spencer the CCTV monitors the employees that are working and therefore, the managers in Marks Spencer’s store observes employees. This fact has increased Marks Spencer’s profit in the way as employees work to the best of their ability and perform well while they are working because they know that they are being observed. Employees need to perform well in order to get bonuses for their good work and to avoid the disappointment of their managers; therefore, they treat customers very well and serve them at all times when they are available. As a result, customers that are treated well tend to buy the items, such as food and clothing from Marks Spencer. This could be for the reason that when customers need help with their shopping, normally employees help them with where to find certain products, or where to find the right shoe sizes and clothing for them. In addition to this, Marks Spencer stores that provide clothing have fitting rooms which means employees that usually stand in front of the fitting rooms are there to help customers with the sizes of their clothing and even the styles. Marks Spencer usually observes the employees’ that are being late and therefore monitors them; normally, an employee that works for Marks Spencer will have an ID card. The lateness of employees’ can also be observed by asking them to sign time-sheets each day when they start and finish work; this helps Marks Spencer to organize all the employees that are expected to be on time and in their work place. Observing and monitoring employees’ makes them to start working on time for the reason that they might not want to have arguments or conflicts with their managers in the store. Because Marks Spencer stores have enough employees on the store floors this helps Marks Spencer to serve the majority of the customers properly. This is for the reason that fewer employees would be placed to serve customers in fitting rooms and most of the employees would be placed on the store floor placing products on shelves and helping customers to find certain products if they need help. For the reason that employees are divided into different areas in the whole store of Marks Spencer they can serve customers and help with their shopping at all times. However, if there aren’t enough employees on the store floor the customers will be disappointed due to the fact that they will not be served very well and not given much help concerning their shopping. For instance, if all of Marks Spencer’s employees’ in the store serves customers only in fitting rooms then there would not be enough employees on the store floor which will lead to a real untidiness and muddle in the store. In conclusion, observing employees’ punctuality makes them to keep up with their attendance and be punctual. This makes Marks Spencer have better image because their employees serves customers well and manages to keep up with the tidiness on the store floors. Physical and Technological resources Physical and technological resources that Marks Spencer uses have quite a lot of advantages as Human Resources. Physical resources are the things that business uses to complete its activities every day in the store, for instance, buildings and equipment. Technological resources are things such as computers with its software such as Microsoft Office. Physical and technological resources are assessed below. Marks Spencer has got a transactional website (technological resource) (www.marksandspencer.com) which means that the business is expanded in many ways which increased its performance. This could be for the reason that clients or consumers that are able to access the website can purchase its products. Marks Spencer online shopping offers UK online shoppers many choices. Their large clothing and home ware line has earned respect and loyalty from shoppers from the United Kingdom as well as worldwide. Consumers can shop online for thousands of Marks Spencer online products from the convenience of their home because people can look through the website to see new clothes and items and the new deals and offers are also promoted on the website so that customers know what is offered in the stores. In the website, it is also possible to contact Marks Spencer if consumers have a question regarding a product or an item. Therefore, this expand the business as anyone can access the website from any country of the world if they have internet connection and it also increases performance because consumers can stay at home not visiting the stores which means Marks Spencer would receive money from costumers anyway, which would increase in sales and this means Marks Spencer would make more profit. Marks Spencer stores has got many tills in their stores and employees that works on them, therefore, having many tills prevents in having long customer queues because as employees are able to work on the tills they can serve the customers very quickly. Therefore, the more tills Marks Spencer has, the better customer service because it serves customers quickly leaving them happy and it is likely to make them to come into the store the next time as they received good customer service. Eventually, if they continue visiting the store this means they will buy more products which will increase in sales and make higher profits. In addition to this, normally there are lifts in Marks Spencer stores that helps customers quite a lot too because their shopping can be more convenient. Lifts are useful because it helps customers with pushchairs and disabled customers to shop, especially in the stores where Marks Spencer has got four floors. For instance, one of the shopping malls in Plymouth has got Marks Spencer store of four floors; the first being men clothing, the second is women clothing, the third is lingerie and fourth floor is children clothing and toys, home ware and the cafà ©. On the fourth floor they also have a tunnel leading directly to the car park so it means customers can avoid the busy lifts that they will find in the shopping mall itself. Therefore, by having lifts Marks Spencer makes it convenient for customers to shop and they are likely to visit the store more often due to comfortable surroundings and resources available to them. In addition to this, Marks Spencer always has employees with samples of different items in the store for customers to try. This would also increase in providing better customer service as the products are promoted and customers will want to try out the new products. They will be happy that Marks Spencer offers samples to try out because customers would feel important in the store by employees showing attention and offering products to customers. As a result, customers that try the samples are likely to like the product and purchase it making Marks Spencer’s sales eventually grow and profits increase. On the top of that, customers want a good value for the products they buy which would be high quality and reliable. They also want to get good quality service provided to them at the stores and that staff always would be available for assistance if needed. Customers also want a good environment around them in which they would be comfortable to shop and buy high standard products provided; therefore, better customer service would be increased by employees being motivated and providing assistance and by having resources such as lifts which increase the shopping convenience and this would keep customers happy. The availability of communication through Internet and telephone allows Marks Spencer to correspond quicker and easier. Managers in Marks Spencer are able to send and receive information from other Marks Spencer branches as well as departments. For instance, e-mails allow managers to attach financial statement and transfer them to finance department which might be situated in another city. In addition to this, Internet and telephone connection gives an advantage to customers as well. This is for the reason that customers are able to contact Marks Spencer either by e-mails or by giving a call to Marks Spencer store. A number of customers feel the need to contact Marks Spencer because they want to ask about particular product, for example, if Marks Spencer has black jacket in size ten. If it happens that Marks Spencer has this type of an item in store the customer might ask to put it on hold which Marks Spencer will be happy to do. However, if it happens that Marks Spencer does not have it in store then the customer can order it and Marks Spencer will be happy to provide instructions how to do it. When the delivery arrives, Marks Spencer will contact the customer by informing him about the arrived jacket. Therefore, the customer would be happy because they are given quality service and because Marks Spencer is trying the best to serve customers well; this would make customers feel important. Marks Spencer has insurance against thefts, fire damages and vandalisms; therefore this makes employees feel safe in their working environment. Because of this employees are able to work and perform up to the highest possible standard. For instance, an employee who knows that he or she is protected from thieves that could appear in the store and be dangerous to lives of people that appear in the store will be able to serve customers without fair and stress. In addition, customers who know that Marks Spencer has insurance they would feel safe and protected when shopping in the store. This would increase Marks Spencer’s performance, as employees want to be safe, they want staff would be always available for assistance and they want good environment around them that is comfortable to shop in. Therefore, having insurance from thefts, fire damages and vandalisms would make sure that customer’s desires are fulfilled and employees would work to the best as they can knowing that they are protected. Therefore, as customers would visit the store more because they feel safe at the store, they would buy more products due to safety and getting quality assistance from employees and as a result sales will eventually increase which would lead to higher profit and increased performance. Equipment of Marks Spencer and the machinery would increase in productivity as well as the performance and reputation of the business. Marks Spencer would need to have the latest equipment and machinery in order to carry day to day activities correctly. Marks Spencer would use equipment and machinery such as self check-out machines, electronic tills and trolleys to carry products. The machinery in warehouses would be used in order to make items to the highest possible quality. These machines would need to be updated regularly so that they would not break down and cause day to day activities to slow down. Ultimately, if machinery and equipment are looked after and updated regularly then this means Marks Spencer would be able to operate effectively; customers are likely to buy their items and products which would eventually increase in sales and profit. If customers are going to be happy due to the service provided because of good machinery and equipment then they are likely to stay with Marks Spencer by visiting their stores regularly which would mean Marks Spencer’s reputation will grow over time and once again the sales and profits will increase. In addition to this, Marks Spencer stores have got employed security guards which make a store a safer place to work because there is an instant access to help. Having security is important for marks Spencer because products and items have security tags attached to them on the electronic bars; therefore, if people decide to steal a product or an item the alarm is going to go off at the entrance of the store which would mean that a customer has stolen something. Therefore, security guards will take care of this and make sure that the thief does not run away. In addition, CCTV cameras take great care of being secure at work as well. CCTV cameras operate all day through in Marks Spencer recording everything that is going on. Eventually, having security guards and CCTV cameras increases in performance of Marks Spencer as the employees will feel safe and happy at work and as a result carry out tasks to the best of their ability. Marks Spencer normally has quite big buildings that consist of two, three or even four floors, especially in shopping malls. In addition to this, if there are separate floors such as four floors building it allows Marks Spencer to set a particular floor for particular products and items. For instance, one of the shopping malls in Plymouth has got Marks Spencer store of four floors; the first being men clothing, the second is women clothing, the third is lingerie and fourth floor is children clothing and toys, home ware and the cafà ©. Besides, as the floors are quite big in terms of space, this allows Marks Spencer to have room in order to display a range of styles of the products. If Marks Spencer is able to display a large number of products this means that the performance is going to be increased because as the products are promoted the customers that walk around the store would see the product or an item and might get interested. Customer is likely to be attracted by the product because of the suitable displaying of products in Marks Spencer and as a result they would purchase it. In addition, customers that walk pass the store, might see the display of products in the shop windows of Mark Spencer and this would attract them to come in to the store to look at the product in more detail. Therefore, as customers are likely to buy more products due to displaying this is likely to increase sales and make a higher profit. If the business makes higher profit then this would increase the performance of Marks Spencer. Eventually, human, physical and technological resources have a big impact on Marks Spencer as a business. However, the inability that could to use these resources effectively could appear and this will cause many problems and difficulties rather than advantages.

The Cultural Capital Defined Cultural Studies Essay

The Cultural Capital Defined Cultural Studies Essay The chapter provides a theoretical understanding of cultural capital from the perspective of cultural capital from the perspective of sports consumption. Scholarly journals are reviewed to give readers an understanding of the contribution of cultural capital made in the area of sports. The chapter commences with broad issues concerning the topic and narrowed to focus on the study in Ghana. 2.1 Cultural capital defined Cultural capital surfaced in academic work approximately 25 years ago in the work of Bourdieu and Gouldner, and after that references were made in other fields as evolutionary biology (Cohen, cited in Ahbeysekera et. Al, 2004) a literary criticism (Guillory, 1993). Bourdieu from one angle sees capital as power, in this case the power stems from a communal or structural point which accumulates power for a person to gain an economic advantage in the short or long term (Bourdieu, 1990). From another angle and with reference to linguistic and cultural capital, Bourdieu advances a case that parent of the middle class use cultural capital to propagate and advance their economic fortunes (Bourdieu, 1984). Several studies have attributed cultural capital as being embedded in family background and education and have made connections between value based power and having various types of cultural capital (Gayo-Cal, Savage, and Warde, 2006; Warde, 2006; Warde, Martens, and Olsen. 1999). Bourdieu 1997 identifies the three form of cultural capital as Embodied, Objectified and Institutional cultural capital. Embodied cultural capital is explained as the permanent nature of the mind and body (Bourdieu, 1997). Objectified cultural capital is better explained through its operation. Examples are the interpretation of say, paintings or the ability to play instruments. As Bourdieu point s out one can fully appreciate objectified cultural capital except they can afford its consumption (Bourdieu, 1997; Silva, 2006). This explanation in a way demonstrates how objectified cultural capital is learnt or passed on over time, according to Sullivan, 2001 families with well-resourced cultural capital pass on through a mechanism of hands on tutoring through their free time by attending art exhibitions, theaters, highlighting form the need for education and mannerism. Institutional cultural capital according to Bourdieu is the official and systemized recognition accorded both embodied a nd objectified forms of cultural capital. Through this system the tangible value of the capital is scaled and its extrinsic value made legitimate (Bourdieu, 1997). According to Bourdieu 1984 education through formal means is one of the key sources of cultural capital as teaches learners the intangible values associated with cultural knowledge. The nature of institutional cultural capital in supporting symbolic value shapes and improves society. This form of cultural capital and the social structure it provides makes for a personally advantaged position (Bourdieu and Wacquant, 1992). In looking at the relationship between cultural capital and social status and also showing the essence of rare highbrow cultural capital to social status, a study conducted indicated that high class socio-economic groups had access and could to relate to an array of cultural capital forms compared to the lower groups (Peterson and Kern, 1996). 2.2 Capital and symbolic power According to Bourdieu 1990 power is imagined as symbolic power created through discretionary values associated with various types of economic, social and cultural capital that people own. One of the crucial points that have come out strongly is the link of cultural capital to symbolic power and how this creates distinction; allowing higher social status in society through symbolic capital. According to Bourdieu 1997 symbolic capital creates benefits through tangible properties, such as material acquisitions, which further puts those who own it at an advantage. This claim for higher power is emphasized and legitimized through symbolic capital (Swartz, 1997). As symbolic systems are established within society these structures shape and inform our habitus and consequently create permanent characters learnt over a period that inform the way people think of the social environment and the way people function in it (Bourdieu, 1990; Swartz, 1997; Edwards, 2009). 2.3 Cultural Consumption of Sports Sporting preferences are made on social and cultural reproduction and class lines along the same directions as the preference for music and the arts (Bourdieu 1978; 1984). He mentioned that various sports are pecked differently in the social and cultural hierarchy. Wilson 2002 states that according to Bourdieu (1978; 1984) each sport requires the suitable taste and preference and a peculiar sets of skills and knowledge to partake which he calls cultural capital. Separation among people is created through taste consumption and acts a means of social distinction among people. A group through its taste and preferences can align or disassociate itself from society and can be used to create some status for the niche separating it from the mass appeal taste of the rest of the group. Holt (1998) argues that the things that are valued in domains as the arts and theater attendance are mystified in rituals of taste and consumption. In the quest to improve ones standing in society and better the lifes of their descendants theres is a perpetual pursuit of improving ones social standing in a progressive manner so as to restore the stratified position. DiMaggio and Useem 1978 summed this up by saying accumulated cultural capital improves opportunities in life by turning this capital advantage into social and economic progress in future. The hierarchies within society are crucial in understanding the kind of people that attend high cultural activities (DiM aggio and Useem, 1978; Matty, 2004; Tampubolon, 2007). It has been identified in a couple of research studies that sport is less developed when compared to other consumption fields. Indeed, it was noted by Warde 2006 that Bourdieu acknowledges the essence of sports and body maintenance in the storage and exhibition of cultural capital. Bourdieu also noted that ones sporting appeal is complimentary to their lifestyle and serves as a distinction from others (Warde, 2006). In his study- cultural capital and the place of sports, Warde 2006 revealed that the high class society had taste for rare sports, not only that but Wilson 2002 in his study- paradox of social class and sports involvement, reinforces Bourdieus framework that those with highly accumulated wealth tend to participate in sports largely but also more inclined to dissociate themselves from circular sports. The type of sports chosen by people to participate in cannot entirely be dependent on the cultural resource factors, as noted by Warde 2006 in his English study, gender, age, ethnicity contributed to the pattern of sports participation. Also, there have been overwhelming support provided in literature that beyond cultural capital ones socio-economic position, education, gender influenced their choice of sporting activity (Sturgis and Jackson, 2003; Gayo-Cal, 2006). 2.4 Patterns of Cultural Capital A survey (2003-2004) conducted by the centre for research into socio-economic change (CRESC) UK to examine nature of cultural capital in the UK and the degree to which cultural capital can aggregate or disaggregate social groups. The survey used 1564 respondents and the results revealed a clear distinction taste, cognition and participation in across gender, education and class across cultural fields among others music, visual arts, dining out (Gayo-Cal et al., 2006; Gayo-Cal, Warde, and Tampubolon, 2005). The groups that had higher education and those within higher social class were highly involved in cultural activity than their lower level counterparts respectively in the area of education and social class. There were indication from the preliminary results that education and the hierarchy of occupation was passed onto generations such that parents with high education ensure that their children get equal or if not better opportunities to ensure better opportunities and rewarding j obs (Gayo-Cal et al., 2006). Along work lines, Bennett et al. 2011 established that employers, managers and professionals are well informed on cultural artifacts in its widest form by lower class with a higher degree of cultural education whether formal or informal. This point was reinforced by Erickson 1996 that managers tend to be more informed on relatively more cultural domains due to their professional function to interact with more people. There is suggestion that occupations embrace professionals with compatible cultural capital merit as the professional are able to appreciate and comprehend occupation standards (Sommerland, 2007) and the amount of cultural capital held can be important (Peterson and Kern, 1996). 2.5 Cultural Capital and Sports It is often usual to see some kind of sports activity in societies irrespective of the part of the world and this can be attributed to wanting to associate with a group. According to Etizen and Sage 2003 sports is counted as part of the few human activities that can bond a community in any part of the world. Weiss 2001 concedes that few people participate in sports for wellbeing but for the majority it is as a result of the quest to align and identify with others and also reinforce their personalities. Consequently sports can be engaged so as to establish ones cultural identity (Stodolska and Alexandris, 2004). Contrary to the above sports can be used as a catalyst for exclusion and propagate selectivity among groups and people. Culturally popular sports are recognized and given more attention giving them more social capital and power (Light and Kirk 2001). For instance social groups including families reproduce social advantages through private school attendance which is recognized for its exclusivity (Light and Kirk, 2001). The absence of partaking in any sports activity is tantamount to societal isolation and this result in anti-social tendencies that pave the way on cutting ones chances of socialization, education and professional ascension (Majumdar, 2003). Cricket in India is a good example of such marked exclusion. Corporate sponsors have branded the game as elitist and the sole preserve of the educated and affluent sine post-independence (Majumdar, 2003). Corporate Institutions have clear policies for player recruitment and they attach a great deal of importance to education; this also is a criteria in terms of their reward system as the level of ones education affects how much salary one receives. There is monopoly through high fees from cricket clubs preventing the less privileged to have access to the sports (Majumbar, 2003). It is paramount to appreciate what leads to the association of particular groups of people with certain sports activities and its function in the reproduction of socio-eco nomic differences in a society (Washington and Karen, 2001). Ii is the duty of incumbent spots managers to ascertain the relationship between sports participation and socio-cultural capital in order to phantom how to equalize this inequality and give the less privileged adequate representation if desired. Globalization has marginalized traditional cultures and ethnic social systems and promoting identical societies (Hochschild, 2006). Despite this global approach of uniformity and the expression of western views sports can also promote the minority groups by playing a role in maintaining foreign identities and keeping dominant national ties (Giossos, 2008; Lee, 2006). International sporting activities like the Olympics, Commonwealth games and FIFA worldcup are avenues for fans and participants to establish and exhibit their cultural affiliation (Yoh, Yang and Gordon, 2008). 2.6 Sports fans and consumption A fan is passionate and committed of a particular sports consumptive object (Hunt, Bristol and Bashaw, 1999). In this regard a fan is a consumer of an organize sport. The term committed shows the level of attachment fans associate with the sports. Fans are also driven to act for the sport. A sport consumption object can be the sport, team or even the organized leaque or personalities like players, coaches/ managers, commentators who are strongly associated with a sport. Several fans exist as they differ in their behavior and motivation (Hunt, Bristol and Bashaw, 1999). Current concepts have focused on team performance as the main driver of fan behavior (Cialdidni et al., 1976; Grove et al., 1991; Mann, 1974; Wann and Dolan, 1994). Our appreciation sports fan is limited and fan motivation and its consequent behavior extend teams and certain situations have no connection to team performance (Fisher and Wakefield, 1998). In addition, most studies have concentrated on ticket sales and game attendance as the ultimate goal in the exchange between sports marketers and fans. Beyond this, sports marketing involve corporate sponsorship, sports prafenelia, sovenirs, stadia branding, sports publications and others (Bandyopadhyaya and Bottone, 1997). Thus the need to shift research study into other areas to fill the gaps identified in fan behavior and consumption. 2.7 Sports consumption- fandom and cults in sports Fan is the short version of fanatic and entreats religion in sporting contest and competitions (Borland and Macdonald, 2003). Fandom is part of the system of sports instituted so that people can be part of the game without partaking (Branscombe et al., 1991). The concept inspires social advantages as togetherness, belongingness and fraternity but also self-esteem (Zillman et al., 1993). Fans get ecstatic by the mere fact that they are fans (Kimble and Cooper, 1992). This passion and energy which is transformed into the mood of the fans is determined by the sport they are supporting and the outcome of a game lingers onto other unrelated activities immediately after (Hirt et al., 1992). He also defines fandom as an association to a sport/ team with great deal of emotional importance and treasure from this membership (Hirt et al., 1992). A follower of sport does not translate to mean they are fans (Funk and James, 2001). Further distinction is provided on what constitutes a follower and a fan of sports, followers witness a game without much attachment but fans are passionate in supports and transcends beyond watching a game, they are committed on a daily basis (Jones, 1997). Several distinctions have been made between who a follower of a sport is compared to a fan and this borders on the degree of emotional attachment and level of commitment offered by the supporter (Anderson, 1979; Hunt et al., 1999; Stewart and Smith, 1997; Tapp and Clowes, 2002; Pimentel and Reynolds, 2004). According to Wann and Pierce (2003) the accuracy of measurement of the level of identification/commitment is essential to sports psychologists and marketers due to the fact that the degrees of response of sports fans are usually a function of their commitment and level of association with the sport. Sports consumption creates fandom as seen above and this has the tendencies of creating cults in sports. As witnessed earlier in the section being a part of like-minded people is rewarding and one of the key ingredients of cult and cult brands is that they maintain the distinction that keeps their members together (Atkins, 2004) and therefore alienate others by this same argument. On the surface it may seem that cult is non-existent in the domain of sports as this is usually associated to religion. It has been argued that sports is competitive, versatile and a personal activity contrary to religion which is grounded on a communal system and is non-competitive in nature (Prebish, 1993). A sport is likened to religion and because it is rooted in a natural cause (Novak, 1995). Further, Brody (1979) that the joint nature of supporters of organized sports is partly religious in nature. The important point is how groupings are created and the resulting in exclusion of others. According to Percy and Taylor (1991) followers of teams maintain rituals of essential symbolic artifacts as apparels, food and type of allies they choose which are sacred in the ritual of sports. 2.8 Sports Affiliation Membership of a group is driven by the aspiration to keep a distinction from other social groups (Madrigal, 2002). An aspect of membership identification and affiliation is the act of rites such as gathering souvenirs, match attendance and considering the sport as part of ones identity. There is strength and a sense of identity in associating with a group. There is difficulty in creating self-images in the absence of group association (Tajfel, 1982). Closer ties with a group allow individuals to borrow the positive traits of a group for oneself and take on more commonality with others within the group (Fisher and Wakefield, 1998; Tajfel and Turner, 1986). Cultural capital is gained by sports fans through the adoption of labels (Richardson, 2004) from the group- the appreciation of how to consume in the socially sanctioned manner. 2.9 History of Ghana Sports The subject of cultural capital and Ghana sports can be located in the countrys sporting history and particularly football and the love the people of Ghana have for the game. Ghana has a rich football heritage with a great deal of chronicled successes, includes memorable milestones as producing Arthur Wharton, the first black professional footballer in the English game (Ghanaian Times. 2011: 29); Ghana won the African Cup of Nations football tournament four times. Football clubs like Accra Hearts of Oak have chalked over 100 years with enviable local and continental record: Hearts won the first ever football league in Ghana, an unprecedented six consecutive occasions, an unbeaten season and three continental- Confederations of Africa (CAF) trophies (Daily Graphic, 2012:31). Football is a competitive sport in Ghana attracting huge following and its nature of consumption is diverse. Football has produced fan groups along ethnic and regional lines in the country and families have a gene ration of loyalty to particular clubs. Above all, sports in Ghana tend to follow Bourdieus idea of distinction in consumption by virtue of ones cultural capital and appreciation of a sport. Golf, has only received some attention in the country in recent years due to the enormous attraction it receives from corporate institutions. Golf is second to football as far as private sector sponsorship funds is concerned (Anonymous, 2007). The overarching institution in charge of sports in the country is the National sports and came to effect through a presidential declaration. The National sports council is in place to improve, promulgate, and manage sports in the country with aim of fostering nationalism and professionalism that drives consistent wealth creation and infrastructural improvement (Anonymous, 2007). It is interesting to note that a similar institution the Gold Coast Amateur Sports Council existent in the Gold Coast, then Ghana established under the enactment of Ordinance 14, 1952 (www.sportscouncil.com.gh).