Costing Methods Essay

Polk Company is in the business of selling custom fishing lures. Recently they decided to introduce a new product. Before they introduce the product they would like to know if variable or absorption costing is the best method for the company. Variable and Absorption Costing Method Absorption costing is when all manufacturing costs are absorbed by the product and shows a higher net income (Kieso, Kimmel, & Weygandt, 2011). Based on the 80,500 lures Polk Company sold in 2012, absorption costing is the preferred method to use because they have a higher net income compared to the variable method. Benefits The benefit of absorption costing for Polk Company is they will show a higher net income of the products in inventory that are not sold immediately. On the contrary, if Polk Company uses variable costing they see any profit or loss almost immediately because all expenses are paid during the current accounting period, even if all the products are not sold. Competition and Bidding Absorption costing is the better costing method for Polk Company to use against a competitor who has submitted a lower bid. As stated previously, absorption costing does not require Polk Company to show any expenses on the products they are offering in the bid because they do not have to show expenses until after the products are sold. Conclusion In conclusion, Polk Company should introduce the new fishing lures by using the absorption costing method, and for submitting product bids. References Kieso, D., Kimmel, P., & Weygandt, J. (2011). Accounting: Tools for Business Decision Making, 4e (4th ed.). Retrieved from The University of Phoenix eBook Collection database.

Financial Analysis of McDonalds Company

PART 1, COMPANY OVERVIEW:a. McDonald’s is an American fast food chain that sells a variety of fast food alternatives, but most notably has earned its reputation and success for the hamburger. It is the largest fast food chain in the world, with globally recognized â€Å"golden arches† symbolizing a reliable meal can be had in over 119 countries. McDonald’s has continued to develop their menu to reflect the desire/demands of their customers. The current CEO of McDonald’s is Mr. Don Thompson. b. McDonald’s was started in the 1940s as a BBQ restaurant owned and operated by Richard and Maurice McDonald’s in California, U.S.A.The McDonald’s franchise was not established until 1955, when man by the name of Ray Kroc opened the ninth McDonald’s restaurant in Des Plaines, Illinois. By 1961, McDonald’s filed trademark for the company name and â€Å"drive-thru† service. Ray Kroc eventually forced the McDonald’s brother s out of the business and successfully spread the company throughout the world. Today, McDonald’s is an international sign of globalization. c. McDonald’s invests in properties, operates restaurants, and is a franchiser of the McDonald’s chain, in order to make money. McDonald’s operates differently than most franchise companies. Most franchised companies make their money by claiming a percentage of the income made at each chain; however, often times McDonald’s Corporation will purchase the property the franchise is on and charge rent.d. Arguably, the main thing McDonald’s sells is uniformity and expectations. This is to say, when you order from McDonald’s you know what you will get every single time; no surprises. McDonald’s makes money doing this by selling the food for significantly more  than what they purchased it for. McDonald’s also makes money by participating in the strategy discussed above investing in proper ties and charging franchise owners rent, franchise markups of 40%, operating restaurants, etc. e. McDonald’s has over 33,000 locations in over 119 countries across the globe to include places like Israel, Brazil, Scotland, Russia, the U.S., India, and China. Within each of those countries McDonald’s can be found in a variety of places in a variety of forms; such as, coffee stands in Paris, drive-thru only restaurants in Germany, airport vendors, or even connected to gas stations.f. In recent years McDonald’s has taken criticism on the unhealthy food choices on their menu, so much to where at some restaurants they have listed the total caloric intake per meal. That said, McDonald’s was the official food sponsor of the 2012 Summer Olympics in London, England, where they built their largest restaurant to date to support the massive crowds.PART 2, FINANCIAL OVERVIEW:a. Sales and Income Record:————- Fiscal Years ——â₠¬â€Ã¢â‚¬â€-2007 2008 2009 2010 2011 Sales 22.79 23.52 22.74 24.07 27.01 Percent Change in Sales Each Year3% -3% 6% 12% Net Income 2.34 4.31 4.55 4.95 5.5 Percent Change in Net Income Each Year84% 6% 9% 11%GRAPH OF SALES & NET INCOME, FY 2007 ‑ 2011COMMENTS: Aside from 2009, the company has seen growth in both sales and net income every year. The decrease in sales for 2009 could possibly be a result of the economic times, where many of McDonald’s customers may have reduced their spending and become more conservative with their expenses. The growth percentages since 2010 are increasing, which indicates a positive trend in the company moving forward. It would be unrealistic to assume that the company can continue doubling its growth percentages, but a continued growth of 12% to 15% is possible.b. Expense Distribution:FY 2011 Major Expenses: COGS 16.3 SG&A 2.2 Interest 0.49 Taxes 2.5PIE CHART OF EXPENSES, FY 2011COMMENTS: As depicted in the chart, the companies’ largest expense is Cost of Goods Sold (COGS). In order to increase their profit margin, McDonald’s must continue to try and find ways to reduce COGS. This is because many of the other expenses are much harder to influence. Selling General and Administrative (SG&A) expenses have most likely already been trimmed to the minimum over the company’s life, taxes are required by the Government, and interest expense makes up only a small portion of expenses. The company may need to do a cost-benefit analysis to determine what may be done to reduce COGS. One idea may to better vertically integrate the company, or to remove menu items which are unpopular and/or seasonal.c. Assets Distribution:Year-end FY 2011 Assets: Cash 2.3 Accounts Receivable 1.3 Inventory 0.12 Fixed Assets (PP&E) 22.8 Other Assets 1.67PIE CHART OF ASSETS, Year-end FY 2011COMMENTS: As depicted in the chart, the companies’ assets are largely fixed. This comes as no surprise since the company consists of over 33,000 restaurant locations worldwide. The percentage of fixed assets as compared to current assets does mean though that the company is not liquid, which means it cannot quickly convert its assets to cash. The low inventory which actually makes up just 0.4% of the asset distribution is normal due to the fact that the company is a restaurant chain, and much of the product has a quick shelf life.c. Capital Structure: Year-end FY 2011 Capital Structure:Current Liabilities 3.5 Long-term & Other Liabilities 13.73 Common Equity 14.4CAPITAL STRUCTURE PIE CHART, Year-end FY 2011COMMENTS: As depicted in the chart, the companies’ capital structure is made up largely of common equity and long-term liabilities. The compa ny has been extremely successful, and has gained equity over the years as it became the world’s largest chain of hamburger fast food restaurants. Additionally, in order to continue their growth, the company has expanded its locations, which required long-term debt financing. Because of these characteristics,  the percentages of each of these categories are expected. Furthermore, the company has low current liabilities, which is normal for yearly operations in this sector.PART 3, RATIO ANALYSIS:(1) LIQUIDITY:Comments On McDonalds Liquidity:McDonald’s has a good current ratio. It is above 1, which means that it has enough current assets to cover current liabilities. Also, since the number is not too high, we know that the company is utilizing its assets efficiently. The quick ratio is also good because it is above 1, meaning McDonald’s does not rely on their inventory. Comparing the numbers to Wendy’s, McDonald’s has room for improvement.(2) ASSET MANAGEMENTComments On McDonalds Asset Management:McDonald’s has great Total Asset Turnover when compared with Wendy’s. They are making over $0.75 for every dollar of assets. Also, their Average Collection Period is very good, taking on average 18 days to collect on receivables.(3) DEBT MANAGEMENT:Comments On McDonalds Debt Management: Both companies’ debt ratios are similar, and are not alarming for the industry. However, McDonald’s Times Interest Earned is much higher than Wendy’s. This shows possibly lenders that McDonald’s can easily meet their interest owed (17x).(4) PROFITABILITY:Comments On McDonalds Profitability:For the industry, McDonalds has good profitability. Wendy’s seems to be struggling in this area, and it may be best to compare the company against another peer to determine how they are doing.(5) MARKET VALUE RATIOS:Comments On McDonalds Market Value Ratios:McDonald’s market value is good compared to both indust ry numbers, as well as against Wendy’s market value ratios. McDonald’s ratios prove the company is economically strong. Part 4, Summary and ConclusionThe McDonald’s Company is continuing to grow, both physically and monetarily, as seen in the increase in locations and sales per year. This is a good sign, especially during the current economic times. The company also has standard asset, expense, and capital distribution for companies within the fast food industry. This is good because there are no glaring issues that would inhibit investing in the company. Additionally, the company has great ratios when compared with The Wendy’s Company, as well as the rest of the fast food industry. One can fully understand how well the McDonald’s company is doing in comparison to the industry.Looking forward, the McDonald’s Company can try to get better by finding efficiencies where possible. One way the company could do this is by reducing its Cost of Good s Sold. Through eliminating some specialty items, this may be possible. Also, the company may want to look at a way to increase their return on assets and equity as any increase, large or small, will always help a company. Again, the company is doing extremely well already, but great companies should always continuously look for efficiencies and improvements in these areas.Overall, the McDonald’s Company has postured itself to become a large and extremely successful company within the fast food industry. It has grown from a small upstart in the 1940’s, to a symbol of globalization today  because of the multiplicity of restaurant locations around the world. I believe The McDonald’s Company is a great investment opportunity as it seems to continually improve, develop, and grow to serve its consumers around the world.

Disability Does Not Mean Inability Essay Example | Topics and Well Written Essays - 750 words

Disability Does Not Mean Inability - Essay Example e, disabled people may need more commitment and determination to pursue goals since they may lack certain physical or mental characteristics to perform well in this or that sphere (Wasserman & Asch, 2013). Nonetheless, they have courage and strength to go beyond any possible limits. Paralympics can be regarded as one of the brightest examples of this determination and people’s desire to prove that disability is not inability. For me, the phrase â€Å"Disability is not inability† is associated with unprecedented but inherent quality of a human being. Humans can adjust to any environment and any condition. More so, they may benefit from any condition. Disability often touches only one or a few spheres of the human life. If a person cannot hear, it does not mean that he/she cannot write beautiful stories, paint marvelous pictures, build houses, save people’s lives (being a scientist) and so on. People have a variety of opportunities to make a difference. Hence, disability puts certain limits to certain spheres only. It is also important to remember that the development of technology opens up new horizons. Thus, people whose limbs were amputated participate in sport competitions and show remarkable results. Surgeons often perform outstanding surgeries and people start hearing or seeing again. Healthcare has improved the quality of people’s lives significantly. Personally, I do not have any impairments and I can only imagine what it feels like to be different. However, I know some people who have to live with it. Notably, these people are also examples of determination and capability. Thus, Alex does not walk and is confined to a wheelchair. Nonetheless, he has never complained or drawn people’s attention to his impairment. He works for a multinational as a translator and he is highly valued in his organization. He is punctual and hard-working. What impresses me most is that Alex does sports and has a hobby. He is a great photographer and he is thinking of

Business plan for mobile convenience store Coursework

Business plan for mobile convenience store - Coursework Example However, due to its projected expansive nature, the business will cover regions such as Al Falah, Al Shamkha and Yas. The business will be expected to expand outside Abu Dhabi Emirate in future catering to embrace domestic customers. Mobile Baqala is a convenient retail store that provides merchandising business to retailers at convenience location without been required to go for long distances to find physical markets for goods and services that they need. The business is mainly designed to stock a variety of consumable items such as soft drinks eggs and milk amongst other products that are used by customers on a daily basis. It has been pointed out that most families experience difficulties in accessing basic commodities especially in areas such as Al shamka thus the need for such kind of a business. Apparently, majority of societal members have had problems in making their daily purchases of consumable items especially around Al Falah, Al Shamkha and Yas. As such, the population has agreed that such areas are of high suitability for the store and more perfect to stock a variety of both local and imported produce. Mobile Bagala is meant to operate as mobile store within the United Arab Emirates and some parts of Abu Dhabi as a grocery revolutionary storey that moves like a mobile unit in different locations. The business is planned to be unique in nature with effective and efficient design serving both local population and visitors. Having embraced a strategy to serve customers around the clock, the business is projected to achieve its objective as the future leading grocer in the United Arab Emirates serving the Arab population with a consistent supply of daily consumables. Besides, the business is designed with an initiative that would ensure consistency in supply of products to customers while creating job openings around its trading zones. Having engaged the

Cause and effect Essay Example | Topics and Well Written Essays - 750 words - 1

Cause and effect - Essay Example There is something dark about the human psyche which even science cannot fully explain. It is a well-known fact that every person has a different level of endurance, and if pushed further than that the inner animal emerges and even the gentlest of human beings can commit the most heinous of sins, for instance, murder. Classical authors of time past have also tried to capture this facet of human personality in their writings. The concept of ‘The Other’ in The Picture of Dorian Grey and the foiling of Bertha and Jane in Jane Eyre are startling. These show very clearly that there is a part in our psyche which has not evolved over time; it has the instincts of a monster. It is that part which is taboo and which we hide from the polite society in fear of being rejected. Now the question is how masterfully you control that part of yourself. We cannot give it free reign, we cannot ignore it, so what do we do? As a result, a new genre of literature and movies has emerged: Gothic or Horror. Gothic or horror movies help us exercise our inner self without being obvious or hurting others. There is something about horror movies which makes one feel awed. I remember the first horror movie I saw was ‘Resident Evil’ when I was eleven years old. ... This made me really think about the real psyche of humans, later. When I read ‘The Lord of The Flies’, this feeling came back. In extreme circumstances, the luxury of our so called sophisticated exterior is shattered and we begin to think like animals. Horror movies make us relish the emotions of horror and terror. It is as if we are taking our shot of this other-worldly reality. The pleasure mixed with horror we feel does not mean that we enjoy doing this to others; it simply means that the boring and monotonous life is left behind and we feel as if we are with the protagonist racing through zombies, clashing swords with vampires and killing our enemies. Humans are emotional beings, who want an outlet to all the natural emotions which have to be felt to live a normal life, but are unable to because nothing extraordinary is happening in their lives and in this normal world. We try to escape from it all and feed our inner demons by watching horror movies or playing gory v ideo games. All the pounding, the blood and the struggle uses up our adrenaline and makes us more composed and controlled in our very day life. I have asked myself after growing up what it was about ‘Twilight’ that made me, for a short span of time, almost worship the idea of a vampire and werewolf? In real life a blood drinking fanged person, or a half-man, half-wolf would be far from sexy but would be downright ugly, disgusting and scary. Then I understood that it was my idea of an adventure, experiencing something powerful and terrifying which I would have been unable to achieve in real life, and it filled that part of my psyche which is called ‘The Other’. Hence, humans crave horror movies for various reasons, the most prominent being satiating the hidden beast

Social Marketing Campaign for Youth Gangs Assignment

Social Marketing Campaign for Youth Gangs - Assignment Example This essay declares that the proliferation of gangs is a national and local issue. The young ages of gang members and resulting individual and collective deviant behaviours make them a particular national concern. The basic age range of gang members is between 12 and 24 years, with the average ages of 17 and 18 years. These are children who should be studying in school and being moulded by society to reach for their dreams and upmost potentials. Instead, they are engaging in deviant and criminal behaviours. States and local communities also experience a rising incidence of gang membership. This paper makes a conclusion that in Atlanta, International Robbing Crew and 30 Deep are two of the largest gangs. They are mostly involved in drugs and robberies. The literature on the social context of gang membership contains numerous contradictions. Albert Cohen advances a subculture theory that seeks to explain why the youth join gangs. In particular, a gang provides them the opportunity to belong, to develop their sense of masculinity, to do something that is â€Å"valuable†, or to fight middle-class society and authority follows the study of psychologist Erik Erikson to understand gang membership. Erik Erikson argues that identity is a â€Å"developmental phenomenon† shaped by the social conditions and internal developmental processes. A social and cultural background that provides for the identity formation process and helps adolescents achieve their human identity needs is beneficial to a robust identity formation.

Carilion clinic Assignment Example | Topics and Well Written Essays - 250 words

Carilion clinic - Assignment Example The suite attempted to block the merger due to the likely monopoly it would create in the area. There is a need for Carilion Clinic to provide their patients with affordable healthcare costs. In order to achieve this, a long term plan on good returns should be designed by Dr. Murphy and the board instead of overburdening the patients with hefty cost. A managerial overhaul ought to be in check. Good leadership is equivalent to success. Notwithstanding, the whole body should fashion their dedication to deliver healthcare towards firmly grounded values. The values will see to it an efficient workforce who put the patient ahead of profit maximization. Will long term policy on returns be better than increasing costs to cover subsidies and uncompensated care of the uninsured patients? Is there a need to revise the salaries to reflect a proportional remuneration to fair pricing on the patients? Is it wise to open referrals for patients who come from outside Carilions health network to boost the income? Does the Clinic need new managers? What is the driving force in Carilion Clinic, to provide good health care or to make money? These are some of the questions that need to be asked to evaluate  the alternative solutions. The favorable alternative will be of the change of management structure. Good management will oversee firm policies that will  stir Carilion Clinic ahead. On good leadership there will be total control of everything. This marks the beginning of the solution. Implementation of the decision starts with creating awareness of the current situation at hand. This involves lots of communication processes after which an introduction of an appropriate alternative will follow addressing the problems. A through process of action will be involved. The results are then to be evaluated through different ways such as feedback, interviews and assessments. When implementing the decisions certain targets are set. They will determine whether to repeat the process if

Monopoly and Oligopoly Essay Example | Topics and Well Written Essays - 500 words

Monopoly and Oligopoly - Essay Example Another feature of oligopoly is that the actions of another firm largely affect the other firms. It means that the success of another firm depends on the action of another firm. Oligopolies would want to know what other firms have availed in the market. For example, McDonalds will keep monitoring what Wendy’s have made available in the market. Oligopolistic market also has a bit of a barrier for entry to the market but not like monopoly market structure. Conversely, monopoly is characterized by the products differentiation. This means that the firm produces a product that is unique. This means that there is no close substitute for the product. Monopoly operates as a single seller in the market; it is a firm that provides most of the supplies in the market. Bookstores in campuses are some examples of monopolies. Unlike perfect competition, the kind of market that monopoly operates is not easy to enter due to quite a number of barriers for entry such as legal barriers (Tucker, 2010). A natural monopoly is where by one firm stands out as a primary supplier despite the presence of other firms. In this industry, it is advantageous for production to be concentrated on this major firm rather than contested competitively. Natural monopolies are mostly public utilities. The legality of these natural monopolies is based on the fact that it is economically sensible to have them. That is the cost of production of goods and services, for example power, by these monopolies, are very high such that it is economically sufficient if only one company produces it. The government however regulates the operation of the two monopolies. This information shows why ‘natural’ monopolies are legal and other monopolies illegal (Hirschey, 2008). Laissez-faire is seen as an economic-policy doctrine. This doctrine opposes government interference in business other than the minimum functions of ensuring peace,

Leases (Accounting) Essay Example | Topics and Well Written Essays - 1500 words

Leases (Accounting) - Essay Example The proposed changes have come to address this concern wherein structuring the amount presented in the transaction is reduced to achieve a desired accounting outcome. Also, to decrease complexity, to improve transparency and comparability, and to have more complete financial statements, the IASB and US FASB had published a joint proposal to change the existing standard of lease accounting. The scope of the proposed improvement involves US - SFAS 13 and IFRS - IAS 17 wherein the aim is to develop a new single approach instead of the previous operating and finance lease approaches (ACCA 2009). In the proposed ‘right-of-use’ mode, investors and other users of financial statements need not to make necessary adjustments because all assets and liabilities are now being recognized in the statement of financial position. In this paper, the advantages and disadvantages of the proposed changes from the board exposure draft will be recognized. Also, the impact of the new single approach on the financial statements will be given an appropriate analysis. The exposure draft has been published to solicit comments from the public either positive or negative. The board thinks that the advantages of creating a consistent approach will decrease complexity and at the same time increase comparability of financial statements that will outweigh the disadvantages (FASB 2010 p.93). Advantages. Providing a complete presentation of financial reporting information for users of financial statements will increase transparency, and this is one of the major advantages of the proposal (IFRS 2009 p.4). A ‘complete presentation’ in the sense that the understated assets and liabilities arising from all lease contracts will now be identified. All of the company’s leasing activities either in a form of an assets or liabilities will now be

The dividend discount models Essay Example | Topics and Well Written Essays - 750 words

The dividend discount models - Essay Example This model calculates the value of common stock as follows. V0 = At 5%, 6% and 4% successive dividend growth rates from first year to third year, and D0 given, we can estimate D1, D2, and D3; and given g we can estimate the value of stock (V0) as per the equation. The Dividend Discount Models are not very accurate mainly because of the difficulty of estimating a rate of growth of dividends, and unpredictability of stock markets, which may overbid or underbid prices of stocks. 2.2 The FCFF Model This model calculates the present value of all future free cash flows minus the market value of outstanding debt and preferred stock.Value of Operations = Value of Equity = Value of Operations - Value of Debt Value per Share = Value of Equity / Total Common Stock Outstanding 2.3 Multiples Approach Analysts many times use price multiples to value stocks. These multiples may be Price/Earning, Price/ Cash Flow, Price/Revenue, Price/ Book, Price/ Sales, Price/ Earnings Growth (PEG). ( Using Ratios and Multiples, n.d.) The most popular P/E Ratio is shown below: P/E = (Stock Price/ EPS) EPS = Earnings per share Higher P/E ratio denotes better growth prospects and vice versa. The drawback of this method is that it becomes meaningful only with context. The context may be skewed. Reported earnings may sometimes be inflated or depressed. Firms that go through turbulent business cycles require more investigation. Other shortcomings of multiples method is that comparable firms are hard to find within an industry or industries. 2.4 Yield Based Valuation Models These models include the Cash Return method (Cash Return = Free Cash Flow + Net Interest... Common Stocks represent an ownership position in a firm. This position entitles the holder to several privileges. An important part of value investing is valuation of common stock. There are several methods of common stock valuation, some of which we discuss in this paper.The Dividend Discount Models mainly predict the dividends, and net present value of a common stock. According to this method, the value of a dividend is the sum of all future dividends. Three types of discount models predict future dividends or value of a stock as outlined below. There are several methods, of common stock valuation, available to investors or analysts. Some of the methods outlined above are more popular ones. These methods present a more or less accurate estimate of the value of a common stock. Gordon Growth Model: This model works best for firms which show stable growth rates (not higher than that of the economy in the long term); which pay out large dividends; and which have a stable leverage. For other firms it is not very reliable.Variable Growth model: This model is most reliable for firms with unstable but moderating growth rates, and which pay dividends that equal FCFE or where FCFE are difficult to estimate. Advantages: 1. The sales numbers are more or less exact and not subject to manipulation or assumption. 2. Sales are not volatile as earnings may be. 3. Sales is a much more stable benchmark.

Safeguarding and Protection in Health Essay Example for Free

Safeguarding and Protection in Health Essay There are many forms of abuse but are usually classified under five main headings, physical, sexual, psychological, financial and institutional. Signs of possible abuse can come in physical forms, such as bruises, cuts, burn marks, etc; emotional signs like flinching, crying and any other changes in the normal behaviour of the client. Although these are signs of abuse it is in no way conclusive evidence of such. Warning signs are NOT evidence of abuse but possible indicators of such. Physical abuse can take many forms but is usually where some form of bodily harm is committed. For example: hitting, slapping, scalding, burning, pinching, force feeding, refusing access to toilet facilities, misuse of medication or restraint, leaving someone in soiled clothes or bedding, etc. The warning signs for possible physical abuse can be things like withdrawal or mood changes, finger marks or multiple bruises, black eyes or bruised ears, scratches or cuts, burn marks, welt marks, a history of unexplained falls or injuries, pressure sores or rashes from wet/soiled bedding or clothes, fractures especially if accompanied by multiple bruises or finger marks, explanations that dont match the injuries, reluctance to be left with the alleged abuser, etc. Sexual abuse is when a sexual activity is performed without informed consent being freely given, such as rape or sexual assault, indecent exposure, sexual harassment, masturbation, involving a vulnerable adult in pornography, enforced witnessing of sexual acts or sexual media, attempted or penetration of intimate areas without informed consent, etc. It can also involve abuse of a position of power. Children are unable to give informed consent to any sexual activity of any description. Some adults are also unable to do this due to diminished capacity or a lack of understanding of the meaning. The physical warning signs for possible sexual abuse can be things like  scratches, abrasions or persistent infections in the anal or genital area (including urine infections), pregnancy, bruises, bite or scratch marks on the body, burns, blood on underwear, abdominal pain with no diagnosable cause, etc. The emotional warning signs for possible sexual abuse can be refusal to undress for activities such as swimming or bathing, flinching when carrying out normal duties such as washing, self injury, self destructive behaviour including alcohol or drug abuse, suicide attempts, depression, aggression, anxiety, crying, sexual abuse of others, provocative sexual behaviour or promiscuity, reluctance to be left with the alleged abuser, etc. The key point to remember when determining possible sexual abuse is the mental capacity to give informed consent to any sexual activity. Psychological abuse an element of psychological abuse exists in all forms of abuse. Emotional distress will be caused when a person becomes a victim of abuse at the hands of someone they trusted such as a family member, friend or carer. There is some abuse that is purely psychological such as bullying, shouting, ignoring, swearing, humiliation, blaming, intimidation, verbal abuse, threats of harm or abandonment, harassment, coercion, deprivation of privacy or dignity, etc. Indicators for possible psychological abuse can be the carer (either professional, family or friend) seeming to ignore the vulnerable persons presence and needs, cared for person fearful of raised voices or distressed if they feel they are in trouble, reports from neighbours about shouting, screaming or swearing, the client not wanting to be alone with alleged abuser, no value of basic human rights (such as opinion, choice and dignity), being treated like a child, etc. Financial abuse can be committed by family, friends, care workers or other outside influences and includes fraud, theft, exploitation, pressure regarding things such a wills, property, inheritance or financial transactions, etc. Indicators are people not being able to manage their own financial affairs when they have the mental capacity to do so, family unwilling to pay from clients funds for services even though the client has enough funds, mismanagement or misappropriation of clients finances, denying client access to their own account, loss of trust, insecurity, client is overly conforming or submissive and Power of Attorney obtained when individual is unable to comprehend. Example: A client is bed ridden and gives a family friend her bank card in order for that care giver to do shopping, pay bills, etc. The family friend then abuses this position by stealing the money from the clients bank or transferring it directly into their account (fraud). Institutional abuse can be committed by organisations, groups or even individuals and includes abuse of power or authority, not maintaining professional boundaries, misuse or misappropriate dispensing of medication, physical restraint, using information of client to embarrass or bully and not maintaining dignity. Indicators can be loss of control, low self-esteem or confidence, crying, a severe lack of staff, aggressive or submissive behaviour. Self Neglect/Neglect by others can be done either by the client themselves or by their carer, professional or otherwise, not meeting the support needs of the vulnerable person and can include neglectful or self harming behaviours, refusing to eat or drink, neglecting personal hygiene, refusing the toilet when able to use, actual bodily harm e.g. cutting and hitting. Neglect by others can include not maintaining an expectable level of hygiene e.g. leaving client in wet/soiled pads, not covering the basic needs of the client e.g. not washing them properly, toileting, feeding or personal care. Indicators are weight loss, lack of personal hygiene e.g. not bathing or washing regularly, dehydration, signs of self harm, depression, withdrawn or submissive behaviour. Discriminatory abuse can include racist or sexist abuse, abuse based on disability, age, gender, sexual orientation or religion; harassment or slander. Again: Warning signs are NOT evidence of abuse but possible indicators of such. Factors contributing to risk of abuse are age e.g. elderly or young children; poor communication between care giver and service user (this could be because of a medical problem or social/relationship issue); care giver having an addiction such as alcohol or drugs; challenging behaviour by the service user; care giver believing service user is being deliberately difficult, care role forced not taken on willingly, major changes to lifestyle because of giving care, multiple care responsibilities, carer or service user having lack of sleep, being socially isolated, care giver or service user being young or immature, financial or housing issues, illness or injury, culture or religion discrimination or prejudice, refugee or asylum-seekers, environmental/economic factors such as financial situation, mental health difficulties, physical disabilities such as sensory impairment, cognitive ability, level of education, intellectual understanding, learning difficulties and many more. Abuse by professionals risk factors are bullying of staff members by manager, a culture of not treating the service users with dignity or respect, poor-quality training, lack of investment into further staff training, poor staffing issues, lack of opportunity for care giver to form a rapport with the service user, low staff morale and not enough support for the staff via appraisals or supervisions. If you suspect someone is being abused then use your skills such as observation and communication with other professionals. You must inform your line manager of your suspicions and monitor the situation closely. If a services user makes an allegation of abuse first you must inform them  that you cannot promise to keep it confidential, you will have to inform the office. This can be difficult because often abuse sufferers will start off by saying something like If I tell you something, will you promise not to tell anyone else? Never promise this. Explain to the service user that you cant promise that you wont tell anyone but the people you do inform will be able to help the service user or it will only be shared on a need to know basis. However, if the service user (vulnerable adult) refuses to allow you to share the information then, other than the necessity to tell your manager, it will be difficult for you to do anything about the abuse. All effort should then go into trying to encourage the service user to agree to the sharing of information and pursuing an investigation. If the client has full mental capacity, and absolutely refuses, then you will have to accept that you can only monitor the situation carefully. Secondly, reassure the service user that you believe what youve been told, offer comfort if required and also confirm that it is not their fault that this has happened to them. Try to not get into a situation where you are given a lot of detailed information, although this might be difficult because the service user might want to tell you everything once they have started to talk or the location/environment might not allow it. If you do get stuck in a situation where you are given a lot of information try not to ask leading questions such as and then did he punch you? Say instead and then what happened? Listen carefully and try to remember everything you are told so that you can record the details later. Any written information pertaining to alleged or potential abuse must be kept in a locked cabinet. If the information is held electronically then it should be password protected. Only essential information should be kept and only used for the abused benefit or best interests. In response to alleged abuse you should Protect, Report, Preserve, Record and  Refer. Protect -Make sure the abused person is safe and protected against any further abuse. Ensure medical treatment is provided when necessary. Offer comfort and support to the abused so they know that they are safe. Concerns, suspicions or conclusive evidence of abuse require an immediate response. You may be even required to remove the alleged offender, take the service user to a safe place or offer to contact a trusted family member to provide support. Report All concerns about an abusive situation should be reported immediately to your line manager, or if that is not possible the on-call person so you can hand over the responsibility to them. It will be necessary to also write up a full written report as soon as possible after the admission or occurrence. Preserve You must ensure any evidence of the alleged abuse is not compromised. Examples: Sexual or Physical abuse can leave traces of forensic evidence so every effort should go into preserving it, such as dont clear up, dont clean any part of the area where the abuse took place, dont remove bedding or any clothes the abused might be wearing, keep other people away from the crime scene and try to persuade the abused not to take a shower, bathe, wash, brush their hair or teeth. If you suspect or are told about financial abuse then you must ensure that any documentation pertaining to that fact is kept in a safe place so it can be used as evidence. Record and refer Any form of abuse, suspected or otherwise must be recorded either by writing it down as soon as possible after being told or on audio tape so it can be written down later. This can then be used as part of the  evidence process. Make sure you take note of everything you observed, anything you have been told (hearsay) and by whom, any previous concerns and what has specifically has raised your concern this time. When making a formal statement or preparing a document that will be used in court, you dont include anything that can be classed as hearsay. A referral is where you provide the authorities with the information they require in order to resolve the matter for the service user such as the police, social services, the health trust, etc. The national policies and local systems that relate to safeguarding and protection from abuse are: National: Care Quality Commission, Criminal Record Bureau (CRB checks), Independent Safeguarding Authority (ISA), Common Assessment Framework (CAF), Vetting and Barring Scheme (VBS), No Secrets national framework and codes of practice for health and social care (2000), Safeguarding Adults review (2009), Working Together to Safeguard Children (2006) and Every Child Matters (2003). Local: Local Area Agreements (LAAs), Local Safeguarding Adults Board (LSABs) and Local Safeguarding Childrens Board (LSCBs). The role of these different agencies include multi-agency and inter-agency working collaborations such as health services, e.g. GPs, nurses, health visitors, occupational therapists; voluntary services, e.g. NSPCC, Age UK, MIND, RNIB, RNID; social services, e.g. residential childrens home workers, social worker, care assistants; the police; consulting the police regarding all safeguarding incidents; responsibilities for overseeing the Safeguarding Assessment and its outcome; allocating a named person usually from statutory agencies in health or social care; convening or chairing strategy meetings, including the agreement of responsibilities, Lead Professional; actions and time-scales; providing information about activities and outcomes to the Safeguarding Coordinator; overseeing the convening of Safeguarding Case Conferences; coordinating and monitoring  investigations. There are numerous sources of information and advice about the role of a home care assistant with regards to the safeguarding and protecting individuals from abuse such as policies, procedures and expected ways of working within the workplace environment; information from the Independent Safeguarding Authority (ISA); relevant and up to date information from websites, leaflets, organisations, local and voluntary groups including government sources e.g. DfE and DoH; voluntary organisations e.g. NSPCC, Benardos; Social Care Institute for Excellence and publications, e.g. Health and Social Care 3rd Edition; What to Do If You Suspect A Child Is Being Abused (2003); National Council for Voluntary Youth Services Keeping it Safe: a young person-centred approach to safety and child protection; Working Together to Safeguard Children (2006). You can reduce the risk of abuse by giving knowledge and empowerment to the service provider this includes: Person-centred values Dignity, independence, rights, fulfilment, privacy and choice. Reducing vulnerability by boosting confidence; autonomy; positive communication; listening and promoting independent decision making. Awareness that everyone has the right to live without fear, violence and abuse; protected from harm or exploitation. It is important that you build self esteem and confidence by encouraging active participation in a variety of activities such as personal care, walks, cooking, etc. Promoting choices and rights by encouraging independent thinking, choices and decisions; empowerment, independence and the importance of informed consent. It is vital to have an accessible complaints procedure in place that is easily read and understood. This will give the service user the confidence to know how to report a complaint and what action the company will take once the complaint is issued. This will reduce the likelihood of abuse. The  complaints procedure should have transparent policies; accountability; procedures and outlines of working practices; clear guidelines on reporting and recording the complaint; robust guidelines for following up the complaint and accessibility (wide distribution, high visibility, etc). Example: The company provides a care plan folder which is left in the service users home. This includes personal information of the service user such as name, telephone, address, doctors surgery, etc; observation sheets; medication records including authorisation to administer medication on behalf of the service user and the medication policy; Financial Record including procedures and expenses sheets; client guide giving an overview of the aims and objectives of the company, services offered, service overview, terms and conditions, quality assurance process, key policies and contacts, complaints on compliments procedures and hours of operation. At the back is a copy of the contract between the company and service user. Unsafe practices which might affect the well-being of service users are: Neglect of personal care duty such as not giving a wash or bath when required, withholding toilet facilities, force feeding and inappropriate dressing. Not following the medication procedures such as failing to check dosage or not properly recording the administration of medication on the given documentation. Failing to record financial transactions correctly. Misuse of authority physical restraint, not respecting professional boundaries. Failure to carry out supervisions or risk assessments. Bad communication and sharing of private confidential information such as not giving the client the respect they deserve or talking to them in a derogatory manner and breech of confidentiality. Failing to keep staff updated on current legislation and safeguarding practices such as insufficient training or unsafe recruitment, not carrying out CRB or reference checks. If unsafe practices have been identified then you must immediately report your concerns verbally to your direct line manager and then follow it up in writing. Find out what the policies are on whistle blowing and follow them. You can be dismissed or suspended if you fail to report your suspicions or allegations of abuse, unsafe practices or not following procedures. If nothing is forthcoming after you have made your report then you have the right to contact the police or social services directly. It is then their responsibility to ensure your report is investigated and followed up.

Consumer Loyalty in UK Sports Leisure Industry

Consumer Loyalty in UK Sports Leisure Industry The sports leisure industry in UK is booming with possibilities. The consumer spending pattern across the entertainment hubs such as online casinos, outdoor sports and other holiday sports has been growing as a sweeter spot for both consumers as well as service providers (Skills Active, 2009). The core purpose of this study is to analyze through research findings if the consumers are loyal to a type of leisure sport based on socio-economical factors such as income, education and occupation etc. The sport and recreation industry as a whole employs around 621,000 people. This is spread across the public, private and voluntary sectors. (Skills Active, 2009) In such a highly competitive environment, customer loyalty has become an increasingly effective means for securing a firms profitability (Reinartz Kumar, 2002). Consumer loyalty refers to a customers repeated same brand purchase within a given category, based on a favorable attitude toward and preference for the particular brand. Empirical findings have revealed that increased market share and decreasing price sensitivity among customers are particular contributions of customer loyalty to a firms profitability (Chaudhuri Holbrook, 2001). The establishment and maintenance of a loyal customer base should, therefore, be (and in many cases already is) a key objective for service providers, since it promotes a sustainable competitive position in the market place. Customer loyalty rests in particular on the brand, which plays an important role in customer retention. A brand can be described as a cluster of functional and emotional values that promises a unique and welcome experience (de Chernatony et al., 2006, p. 819) for its customers. By creating unique associations and feelings among customers that are directly and exclusively connected to the given, the brand helps service providers differentiate themselves from their competitors. In addition to its differentiation function, the brand serves as a potential relationship partner for the customer. The customer brand relationship can evolve and develop through continuous positive interactions between the customer and the brand (Grà ¶nroos, 2007, p. 331) and provides them with the opportunity to offer their customers benefits that go beyond the core service (cf. Hennig Thurau et al., 2002, p. 234). In such relationships, customers perceive a brand as a legitimate partner in the relationship ( Sweeney Chew, 2000;). Customers construct relationships with brands so that they provide and add meaning and value to their lives (Fournier Yao, 1997). This value is generated by the relational benefits resulting from the relationship with the brand as perceived by the customer (cf. Aaker, 2002, p. 95). Ultimately, the customer decides whether the relationship with a given brand generates value or not. Hence, it is fundamental for the establishment of customer loyalty to understand what potential and existing customers expect from their relationship with the brand. However, since customers personalities and lifestyles differ, as does their evaluation of the relationship with the brand, customer characteristics must also be taken into account. With the objective of fostering customer loyalty, sports leisure service providers in UK introduced loyalty schemes. These so called club memberships, sports complex memberships and other hospitality tie ups through credit card providers etc (Plimmer, 2006). While these programs attract a great number of leisure sports customers, skepticism has been expressed whether such programs in fact lead to true customer loyalty based on a positive attitude toward and preference for the brand. Critics assert that the reason why customers repurchase a service again from the service provider rests alone on the rational and economic benefits the hospitality provider offers (Dowling Uncles, 1997). In the past two decades interest in service quality has strengthened as research has shown how improvements in quality can lead to improved organizational performance and competitiveness (Douglas Connor, 2003). To evaluate how well their companies are meeting customer needs, service managers often use measurements of service quality and customer satisfaction (Dabholkar, 1995). Therefore, service quality and customer satisfaction have received much attention from service marketers and academic researchers (Spreng MacKoy, 1996). In addition, Taylor (1997) has noted that the two constructs (service quality and customer satisfaction) have became very important for marketing theory and practice, since many researchers have indicated their relationship to desirable consumer outcomes (Spreng MacKoy, 1996). The majority of services, including sport services, have helped create more demanding and discerning customers. Increasing expectations of sport services have led managers to become customer focused, which in turn has resulted in the introduction of customer care initiatives in order to improve the quality of service provision (Guest Taylor, 1999). A sport service provider can reduce the detrimental impact of effective factors by first ensuring that its customers are as highly satisfied with its services as possible (Javadein, 2008 Sports Leisure Service Loyalty). Sport organizations are better positioned to reap the positive outcomes associated with having a largely satisfied customer base if they have an understanding of those factors that contribute to their customers satisfaction because meeting customers expectations for key service quality attributes should lead to satisfied customers who, in turn, will remain loyal to the service and recommend it to other potential customers (Javadein, 2008 Sports Leisure Service Loyalty). In summary, sport managers should be interested in understanding what it is about their service that specifically influences their customers behavior. They need know that, what specific aspects of their services influence customers in terms of their satisfaction and their perceptions of service quality, which, in turn, lead to behavioral loyalty. Unfortunately, the work that integrates the role of service loyalty within the context of service marketing variables like service quality and customer satisfaction has received less attention. There have been very limited attempts to investigate the relationship between service quality and loyalty in the context of sport (Javadein, 2008 Sports Leisure Service Loyalty). In this research, it is examined if their exists loyalty amongst the consumers for sports leisure services based on their strata segmentation based on their education, income, occupational status and segregated residence. PROBLEM DISCUSSION Leisure sport seekers can get to indulge in sporting and recreation in schools, offices, and while on vacation and at other times too (Mintel, 2009). Briefly the following avenues for leisure sports can be availed by one and all in UK: Outdoor Sports education Outdoor pursuits Area, club and duty management in a range of venues, including casinos and bingo halls; Online games Adventure tourism Managers of sport and leisure organizations are faced with rising customer expectations of their services. As a result of increasing competition, a greater awareness of consumer rights and improvements in service quality, customer expectations of sport and leisure services are in danger of spiraling out of control. Indeed, the ability to manage customer expectations to ensure that they remain appropriate and realistic is a skill that has become increasingly essential for those who manage the industry. Reference Changing social trends will require more effective and efficient management. The population is getting progressively older, couples are having children later, society is becoming more litigious, there is a trend towards sports, home-based leisure is becoming increasingly important and society is becoming globalised. This will have implications for programming, marketing, image and competitive edge. These changes will all require better management (Mintel, 2009). The concept of customer loyalty in leisure sports industry of UK has been not studied properly. The principles of marginality have not been put to use in trying to understand if there exists customer loyalty in this space based on the number of hours spent in the sports leisure activities, types of activities and other such parameters. And also at this point of time it is unknown if there exists some differences between consumers preferences based on their social class segmentation such as income wise, education wise or occupational status wise etc. Reference OVERALL PURPOSE RESEARCH QUESTIONS Based upon the problem discussion the core purpose of the research is to provide an insight on the customer loyalty in sports leisure industry of UK based on parameters such as social class segmentation, consumer leisure behavior towards such options, types of leisure trips selected and to measure or explain these differences through marginality principles. The following are the key Research Questions that will be addressed in the research work: Q1. Are there any significant differences in the leisure behavior of UK population? Q2. Can such differences be measured using Marginality Principles? Q3. What would be the key recommendations for boosting Customer Loyalty in sports leisure industry of UK? LITERATURE REVIEW In this chapter the research work and related entities are discussed at length viz. pertaining to sports leisure industry as a whole, the social classes in UK and other relevant factors which affect a consumers behavior towards the offered services. A conceptual framework for the research would also be presented in this chapter. ELEMENTS IN SPORTS LEISURE With high levels of investment planned by government and employers, mainly in response to the successful London Olympics bid for 2012, there are more graduate career opportunities in the sport and leisure industry than ever before.  The introduction of the Smoking Ban Law in 2006-2007 has had a big impact on the casino and bingo industry.   While many bingo clubs have suffered from falling revenue, there has been a big increase in the number of players visiting online bingo sites and as a result many new job opportunities now exist in the online gaming industry (Mintel report, 2009).  Ãƒâ€šÃ‚   Types of Leisure Sports There is a growing awareness and understanding of health and fitness activities in the UK. More people than ever are actively taking part in sport and leisure as a hobby and this is also fuelling a growth in the number of available jobs. The major types of sports leisure areas include Health and fitness, Club and duty management, Sales and marketing, Instructing and coaching, Consultancy work based on Group Policy referrals usually with particular sections of the population, e.g. those with diabetes, arthritis, Lifestyle consultancy and nutrition opportunities are increasing as the sector embraces the concept of wellness, Sport development performance, administration and facility management (Lucie Johnston, Sports Leisure January 2010). For those who are employed in sports leisure industry the working hours can be long.   Employees are often required to work shift patterns and weekends. Typical salaries after training range from  £20,000 to  £35,000 (Graduate Recruitm ent Bureau, 2009). Manpower Overview Just over half of the sport and recreation workforce in England is female. It has a higher proportion of young people (16-24) than the workforce across England as a whole (SkillsActive Workforce and Skills Summary 2009). 95% of employees are currently from white ethnic groups, compared to 91% in the whole economy (SkillsActive Workforce and Skills Summary 2009). The sport and recreation industry as a whole employs around 621,000 people. This is spread across the public, private and voluntary sectors. (SkillsActive, 2009) There are a huge number of volunteers working in sport and recreation.   The latest Active People survey estimates that two million people in the UK commit at least one hour a week to volunteering in sport. There are currently just over 140 casinos, employing 14,000 people in the UK. There are 17,000 employees in the bingo club industry and 57,000 in the betting industry. The Gambling Act 2005 permitted online casinos to operate from the UK and consequently there are now over 320 online operators of betting and gambling sites employing almost 8,000 people. (The Gambling Commission Annual Report 2008/2009). There are 3,000 private health clubs and over 2,500 leisure centers in the UK, which together employ over 45,000 staff.   An additional 800 clubs are expected to open over the next few years in this growth in dustry (Skills Active, 2009). CUSTOMER SEGMENTATION In order to define distinct target groups, customers are typically segmented along demographic, psychographic, and/or behavioral dimensions (cf. Peter Olson, 2008, pp. 370; Solomon et al., 2006, p. 9). The sports leisure seekers market is segmented as follows: The upper class in Britain is statistically very small and consists of the peerage, gentry, and landowners. These people were traditionally the wealthiest in the land having inherited money and position. Typically they would speak with Received Pronunciation accent and have been educated at schools. Reference The upper middle class in Britain typically consists of professionals with tertiary education, speaking Received Pronunciation. The higher upper middle class are traditionally educated at more prestigious Public Schools. The lower section of the upper middle class tends to occupy less prestigious public schools. Middle class in Britain typically consists of bourgeois with degrees from the less prestigious universities, or possibly no tertiary education. They would speak in accents which are provincial as well as Estuary English . They would be engaged in owning and running local businesses; working for larger corporations as junior and middle management; teaching, social work an d engineering, accountancy, information technology, nursing and other skilled jobs. Reference Nouveau riche, are people from poorer backgrounds who have made money themselves, primarily in business, middle-class professions, or entertainment. They may retain the mannerisms of their original social group or may imitate the behavior of the traditional upper class by, for instance, sending their children to public school or taking elocution lessons, but often in a way that is seen as gauche by the real upper class and middle classes (satirized as Mr Nouveau Richards by Jilly Cooper). This group is characterized by ostentatious displays of conspicuous consumption. Premier League Footballers are typical of this group. Spiralist Meritocracy as another group was identified by Jilly Cooper in her book Class as people from working class or lower middle class backgrounds who gained an education at grammar school and university and have subsequently obtained professional or managerial jobs wit hin companies or government (Wikipedia, Social Structure of United Kingdom). Mondeo Man group are of people employed in the private sector in a salesman or entry level management position that drives a company car such as a Ford Mondeo. These people would have had limited education and cultural aspirations but are keen to move up in the world .The lower middle class in Britain consists of people in white collar jobs living in less prosperous suburbs. They would typically not have had a university education, at least before the 1980s expansion in higher education. Reference These people would speak in local accents, although relatively mild. Skilled working class in UK represents people who would be in skilled blue collar jobs, traditionally in industry but in recent decades showing entrepreneurial development as the stereotypical white van man, or self employed contractors. Reference Unskilled working class in UK represents people who would work in blue collar jobs with low incomes. They would typically have left school as soon as legally permissible and not value education (Wikipedia, Social Structure of United Kingdom). As per Annual Survey of Hours and Earnings (ASHE), 2007 the socio economic graph as per these roles with the median salary clearly depicts the relationship between occupational and age as variables against the income levels (refer Appendix I). CONSUMER LOYALTY Defining Consumer Loyalty As the comparison of the different definitions of customer loyalty illustrates, two key dimensions exist: a behavioral (cf. Cunningham, 1956) and an attitudinal (cf. Day, 1969) dimension. Both are described below in more detail and an equal consideration of both dimensions is advocated, if true loyalty is to be achieved. Behavioral loyalty refers to the consumers actual behavior of repurchasing specific bran within a given category over time (e.g., Day, 1969; Chaudhuri Holbrook, 2002). Kumar and Shah (2004, p. 318) describe behavioral loyalty as loyalty of a consumer as observed from the customers purchase behavior. This explicitly means that the consumer repeatedly chooses the same brand when he needs a specific product or service. This behavior may be a result of a true preference for the brand. However, repeat purchases of the same brand may also be attributable to mere convenience, habit, or because the barriers to change (i.e. the switching barriers) are too high. While proponents of the one dimensional construct of consumer loyalty argue that attitude is irrelevant in determining loyalty toward a brand and consider the debate on the notion of true loyalty a waste of time (Sharp et al., 2002) opponents claim that behavioral definitions of consumer loyalty are inadequate for explaining how and w hy customers are loyal to a specific brand, and call for an analysis of the individuals dispositional basis for repeated purchase (Dick Basu, 1994, p. 100). Zins (2001, p. 270) further criticizes that the observation of behavioral loyalty alone does not leave room to draw any substantiated conclusions about customers future actions. Only measuring behavioral loyalty actually overestimates the share of true loyalty, since it does not account for those customers who buy a brand simply because no other alternative is available or because a particular brand is offering a special promotion (Day, 1969). Prior research has demonstrated a direct relationship between reasons for liking a particular sport team and loyalty. The current study replicates and extends this line of inquiry by examining the mediating role of attachment, a process by which an individual moves from merely liking a team (attraction) to becoming loyal to a team (allegiance). Data (Collegiate N = 194; Collegiate and Professional N = 402, Favorite Sport Team N = 808) were collected to examine 13 benefits and attributes associated with liking a sport team, 3 attitude formation properties, and allegiance. A three stage test of mediation using MLR revealed that attachment mediated the relationship between allegiance and Vicarious Achievement, Nostalgia, Star Player, Escape, Success, and Peer Group Acceptance. The results indicated that allegiance is the outcome of a developmental process by which an individual places greater symbolic value on, has stronger emotional reactions, and has more functional knowledge in relat ion to attractive benefits and attributes associated with a sport team (Frank Daniel C., 2006 Loyalty, Attachment, Sport Consumers, Attitude Development, Participation). Low attitudinal loyalty combined with low behavioral loyalty indicates an absence of loyalty (cf. Dick Basu, 1994, p. 101). Day (1969, p. 30) categorizes those customers as spuriously loyal who exhibit high repeat purchase behavior, but lack any attachment to the brand and can easily be captured by another brand offering a better deal. Latent loyalty, in contrast, is reflected by high attitudinal loyalty combined with low repeat purchase. True loyalty, firms preferred condition, can be conceptualized as an attitudeà ¢Ã¢â€š ¬Ã‚ based behavioral loyalty toward the given brand (see Kim et al., 2008, pp. 99à ¢Ã¢â€š ¬Ã‚ 100). A direct relationship between customer loyalty and relationship marketing has been proposed by a number of authors. Webster (1994, p. 26) claims that Customer loyalty has meaning only within the context of relationship marketing. Similarly, Aaker (2002, p. 23) proposes that one approach for enhancing consumer loyalty is the development or strengthening of customers relationship with the brand, which constitutes the basic objective of relationship marketing. Relationship marketing thus serves as a concept that contributes to the understanding of the factors that drive customer loyalty. The conceptualization of the loyalty construct has evolved over the years. In todays changing global environment, every organization is searching for innovative ways to achieve competitive advantage, increase customer loyalty, and improve efficiency without sacrificing quality of service (Javalgi Moberg, 1997). Service loyalty, with its final effect on repurchasing by customers, is perhaps one of the most important constructs in service marketing. Indeed, loyal customers that indulge in repeat purchases are the base of any business (Caruana, 2002). Some have tagged customer loyalty as a key source of competitive advantage (Bharadwaj et al., 1993) and a key to firm survival and growth (Reichheld, 1996). However, how loyalty has been conceptualized and measured has varied considerably across studies, resulting in calls for more research into the fundamental meaning of loyalty (Oliver, 1999). Three conceptual viewpoints have been suggested to define customer loyalty: the behavioral perspective, the attitudinal perspective and the composite perspective (Bowen Chen, 2001; Zins, 2001). The behavioral perspective, purchase loyalty, strictly looks at repeat purchase behavior and is based on the customers purchase history. Here, the emphasis is on past -rather than on future actions. Moreover, no other loyal behavioral actions such as price tolerance, word of mouth, or complaint behavior can be interpreted. Concentrating on the behavioral aspect of loyalty could overestimate true loyalty. The attitudinal perspective, in contrast, allows gain in additional understanding of loyal behavior (Zins, 2001). Here, customer loyalty is approached as an attitudinal construct. Attitude denotes the degree to which a consumers tendency towards a service is favorably inclined. This inclination is reflected by activities such as the customers recommending service providers to other consumers or their commitment to repatronize a preferred service provider (Gremler Brown, 1996). Based on a favorable attitude towards a service provider, customers may improve preference loyalty (De Ruyter et al., 1998). Lastly, the composite perspective combines attitudinal and behavioral definitions of loyalty. The composite perspective might be considered as an alternative to affective loyalty since using both attitude and behavior in a loyalty definition disputably increases the predicting power of loyalty (Pritchard Howard, 1997). In the present study loyal are defined those customers who hold favorable attitudes toward an organization, recommend the organization to other consumers and exhibit repurchase behavior Consumer Loyalty in Sports Consumer loyalty is of great value to recreational sport agencies in terms of their effectiveness and success. In recent decades, students in the field of recreation and leisure have paid growing attention to the phenomenon of customer loyalty. This paper reviews how exploration of consumer loyalty began, especially in the field of recreation and leisure. There have been three stages of evolution: the one-dimensional approach, two-dimensional approach, and multidimensional approach. The latter two developed out of critiques of an established approach. The authors find the multidimensional approach to be the most comprehensive, and thus the most promising, perspective for future research on consumer loyalty in the field of recreation and leisure (Tian-Shiang Kuo Evolution of Scholars Approach to Studying Consumer Loyalty in Recreational Sport and Fitness Business). Because it is much cheaper to serve loyal customers and easier to maintain their support, customer loyalty is of great value to organizations (Seybold, 2001). Rosenberg and Czepiel, whom Park and Kim cite (2000), claim that attracting a new customer costs 6 times more than retaining an existing customer. To a great extent, the success of a recreational sport and fitness business depends on how the business manages customers loyalty (Backman Crompton, 1991a, 1991b). As Park and Kim note, consumer loyalty is embodied not only in economic transactions with a business but more broadly in general support for the organization (Park Kim, 2000). Glimpsing the importance of consumer loyalty to sport-related businesses, in recent decades scholars in the field of recreation and leisure have paid growing attention to the phenomenon of customer loyalty (Gahwiler Havitz, 1995; Howard, Edginton, Selin, 1988; Park Kim, 2000). What has been the result of this increased focus? For one thing, a gradual evolution in how researchers approach the phenomenon of customer loyalty has resulted. Three stages can be roughly identified. In the very beginning, most investigators focused on only one dimension of consumer loyalty, either the behavioral or attitudinal dimension. Next, as a result of criticism of this initial research model, models that approached both behavioral and attitudinal dimensions of customer loyalty were developed. Finally, the latest studies of customer loyalty incorporate multiple attitudinal or psychological facets. This has led to a deeper, better-integrated understanding of loyalty. The following describes in more d etail each evolutionary stage of the historical development of customer loyalty research. Behavioral Approaches The majority of early studies of consumer loyalty looked only at its behavioral dimension. A customer was viewed as loyal to a product or service if he or she demonstrated consistent purchase of one brand over time (Backman Crompton, 1991b). According to Prichard and colleagues, one-dimensional behavioral approaches were classified in four groups by Jacoby and Chestnut (Prichard, Howard, Havitz, 1992, pp.156-157). The first group comprises researchers who located loyalty in the customers purchasing sequence, for example George N. Brown. The second group comprises researchers such as Ross M. Cunningham who defined loyalty on the basis of the proportion of the customers purchases that featured the brand in question. Jacoby and Chestnuts third group includes the scholars who applied probability models to analyze consumers purchasing behavior. To this group belongs Ronald E. Frank, who in the early 1960s investigated repeat-purchase probabilities using a simple chance model. The fourth and last of Jacoby and Chestnuts group integrated several behavioral variables for generating definition of customer loyalty (Prichard et al., 1992). Burford, Enis, and Paul (1971), as an example, put forward an index combining three behavioral measures of customer loyalty: proportion of resources spent on brand or store, amount allocated to switching, and the number of alternative brands or stores. While operationalizing such behavioral approaches is easy enough, at the same time they may exhibit fatal weaknesses as theoretical frameworks upon which to hang studies of consumer loyalty. Beginning in the late 1960s, some consumer loyalty researchers began to criticize behavioral approaches to their task (Howard et al., 1988, p. 42). They pointed out, for example, that because the associated measures relied on overt, observable behaviors, behavioral conceptualizations of consumer loyalty were doomed to such error as the classification of particular consumers as loyal in one study and non-loyal in the next (Backman Crompton, 1991b, p. 206). Moreover, failure to identify relations between loyalties measured by different patterns of use brought many researchers to the conclusion that brand loyalty encompassed more than repeat use (Backman Crompton, 1991b, p. 206). Attitudinal Approaches Conceptually, behavioral models could not, Day noted (1969), discriminate between true or intentional loyalty and spurious loyalty (Backman Crompton, 1991b; Prichard et al., 1992). Day (1969) and Jacoby (1971) proposed an attitudinal conceptualization of customer loyalty in order to better understand it. According to Jacoby (as cited in Prichard et al., 1992), a customer who shows brand loyalty by implication repeat[s] purchase based on cognitive, affective, evaluative and predispositional factors: the classical primary components of an attitude (1971, p. 26). Prichard et al. (1992) also briefly review those early researchers who looked at psychological aspects of consumer loyalty as well as behavioral. Guest, Monroe, and Guiltinan; Bennett and Kassarijia; and Jain, Pinson, and Malhotra all made an effort to study consumers attitudes or intentions. Just like approaches focused one-dimensionally on consumer behavior, however, approaches focused one-dimensionally on attitudinal loyalty had limitations. According to Prichard et al., the early studies of the attitudinal components in consumer loyalty, when they were reviewed by loyalty theorists, were often found to lack adequate theoretical conceptualization. A result of this was a multitude of measures that confounded research. Examination of the theoretical and empirical rigor underlying the development of various attitudinal measures raised certain questions about construct validity (Prichard et al., 1992). Overall, then, early definitions of customer loyalty as solely a behavioral construct or solely an attitudinal construct could be accused not only of superficiality but also of insufficiency. In time, a two-dimensional approach would replace these flawed perspectives. Reference Consumer Loyalty in Leisure Leisure activities could be said to be more important than ever before. International comparisons show that the British work long hours, and lengthy commuting times only add to the burden. It is increasingly likely that both partners in a household work full time, and household duties such as food shopping and cleaning must be shared, placing a premium on the time available for more enjoyable activities. Reference There is also the increasing problem of sedentary occupations, with many people spending their working day sitting in front of a computer terminal or talking on the telephone. This produces a demand for active leisure or recreation, but developments in technology mean that there is also an increasing temptation to sit in front of the television or to spend hours on the Internet or playing video games (Research Markets UK Leisure and Recreation Market Review 2002). The Most Popular Leisure Activities The survey, which was carried out on a nationally representative sample of 1,012 adults in August 2002, simply asked people about the leisure activities they considered `enjoyable, either in the evening or at the weekend. Unsurprisingly, the leisure market is dominated by in-home activities, with 92% of people content to spend their evenings or weekends watching television (or, with some more initiative, watching bought or hired videos). Listening to music or the radio at home is another popular choice (80%). Even when they wish to socialize, most people now think first of entertaining friends or family at home (79%), rather than going out. Venues providing entertainment and cultural services have to work harder than ever to persuade people out of their comfortable homes. Most consumers (77%) are content to go out for a meal as their main leisure experience outside the home (Research Ma

Business Comparison of Boots and Oxfam

Business Comparison of Boots and Oxfam As a group of Business Analysts, you have been advised by your senior managers to select two contrasting businesses and provide a report on the following: Describe the type of business, purpose and ownership of the two contrasting businesses Describe the different stakeholders who influence the purpose of the two contrasting businesses Describe how two businesses are organised Explain how their style of organisation helps them to fulfil their purposes Describe the influence of two contrasting economic environments on business activities within a selected organisation Describe how political, legal and social factors are impacting upon the business activities of the selected organisations and their stakeholders. Introduction: This assignment focuses on two different types of businesses namely Boots and Oxfam. Describe the type of business, purpose and ownership of the two contrasting businesses Boots Type of Business Boots is international pharmacy, led health and beauty groups delivering a range of products and services to customers. It started in 19th century as an herbalist store by John Boot in Nottingham. In1870 the Boots business begins to develop under the management of Jesse Boot. 1883 Boot Company Ltd formed.1898 Boots Library established. In 1915 Edgar Moss bought his first pharmacy business in Feltham. In the year of 1929 D1 soap factorys building completed in Beeston site, Nottingham.1935 No7 cosmetics launched.1936 Boots branch opened in New Zealand. 1939 Soltan sun care range introduced. 1947 Boots established to carry out whole sale business in Australia, Canada, and Pakistan and in other East countries. 1949 New Boots factory opened at Airdrie in Scotland to manufacture cosmetics. One new factory in Bombay (India) went into production.1951 first self-service started in London. In 1954, E. Moss opened its first photographic store in Staines.1969 Boots Launched Ibuprofen in the UK. In 1971 Company renamed the Boots Company Ltd. Achievement of Crookes Laboratories Ltd. In1983, Nurofen launched; following the approval of Ibuprofen. 1985 Boots received the Queens Award for technological achievement for the discovery and development of ibuprofen. Boots Opticians Ltd formed in 1987, with the acquisition of Clement Clarke Ltd and Curry and Paxton Ltd. In the 1990, Boots contract, Manufacturing and Boots Healthcare International were established. In 1992 Electronic Point of Sale computer installation completed in all boots stores. 1997 UniChem Plc. merges with Alliance Santà © to become largest pharmaceutical. Advantage card launched. In 2001 Boots Opticians offer the worlds first disposable hearing aid, Songbird.   In the year of 2010 Alliance Boots and Pharmaceutical finalise agreement for independently owned pharmacy chain in Sweden under Boots brand. Ownership of Boots:   Ã‚   Boots is a private company, the UKs leading pharmacy-led health and beauty retailer. With over 2,500 stores in the UK, ranging from local community pharmacies to large destination health and beauty stores. Boots UK is part of the Retail Pharmacy International Division of Walgreens Boots Alliance, Inc, the first global pharmacy-led health and wellbeing enterprise. Boots UK Limited(formerly Boots the Chemists Limited), trading as Boots, is a pharmacy chain in the United Kingdom and Ireland, with outlets in most high streets, shopping centres and airport terminals. The companys former parent, The Boots Company Plc, merged with Alliance UniChem in 2006 to form Alliance Boots. In 2007, Alliance Boots was bought by Kohlberg Kravis Roberts and Stefano Pessina, taking the company private, and moving its headquarters to Switzerland, the first ever FTSE 100 company bought by a private equity firm. In 2012, Walgreens bought a 45% stake Alliance Boots, with the option to buy the rest within three years. It exercised this option in 2014, and as a result Boots became a subsidiary of the new company, Walgreens Boots Alliance on 31 December 2014. Boots operates over 2,500 stores across the United Kingdom and Ireland ranging from local pharmacies to large health and beauty stores. Boots stores are primarily located on the high streets and in shopping centres. It sells many health and beauty products, and also provides optician and hearing care services within stores and as standalone practices. Boots also operates a retail website and runs a loyalty card programme branded as the Boots Advantage Card. Mission and Purpose of Boots The mission of Boots is to be the first choice for pharmacy, health and beauty caring for people, customers and communities everywhere. Boots purpose is to provide goods and services to help their customers look and feel better than they ever thought possible. Boots Company is very well known in different department such as in production of biggest health and beauty brand, Botanic, Ibuprofen, and No.7. And it also works hard in customer services. Boots Company encourages the latest technologies and modern formulas to achieve the goals and objectives with new strength of the innovative approaches and creativity. So, the cost control is also the important factors in the company to remain in the business world. The Organisational Structure of Boots is illustrated in figure 1 below: 2nd Organisation: Oxfam International Oxfam International was formed in 1995 by a group of independent non-governmental organizations. Their aim was to work together for greater impact on the international stage to reduce poverty and injustice. The name Oxfam comes from the Oxford Committee for Famine Relief, founded in Britain in 1942. The group campaigned for food supplies to be sent through an allied naval blockade to starving women and children in enemy-occupied Greece during the Second World War. As well as becoming a world leader in the delivery of emergency relief, Oxfam International implements long-term development programs in vulnerable communities. We are also part of a global movement, campaigning with others, for instance, to end unfair trade rules, demand better health and education services for all, and to combat climate change. Today, there are 19 member organizations of the Oxfam International confederation. They are based in: Australia, Belgium, Canada, Denmark, France, Germany, Great Britain, Hong Kong, Ireland, India, Italy, Japan, Mexico, The Netherlands, New Zealand, Quebec, South Africa, Spain and the United States. The Oxfam International Secretariat is based in Oxford, UK. The Secretariat runs advocacy offices in Addis Ababa, Brussels, Geneva, New York and Washington DC. Vision, Mission, Values, Purpose and Beliefs of Oxfam Oxfam vision is a just world without poverty. Oxfam wants a world where people are valued and treated equally, enjoy their rights as full citizens, and can influence decisions affecting their lives. The purpose of Oxfam is to help create lasting solutions to the injustice of poverty. Oxfam is part of a global movement for change, empowering people to create a future that is secure, just, and free from poverty. Oxfam believes that everyone has a right to realize their potential, and to live free of poverty in a secure and more equitable world. They believe that with the necessary action and political will, this world is possible. Oxfam also believes that people have a right to life and security; to a sustainable livelihood; to be heard; to have an identity; and to have access to basic social services. Oxfam subscribes to all international covenants on rights, and to the Universal Declaration of Human Rights. Type of ownership and Legal Form Oxfam is an International non-governmental organization. An international confederation of charitable organizations focused on the alleviation of global poverty. Oxfam International is a Confederation of thirteen independent aid, development and advocacy organizations. Oxfam India and Oxfam Japan are also associated with OI, with both organizations set to become full affiliates in the near future. Rostros y Voces, a not-for-profit organization based in Mexico currently has observer status in anticipation of becoming fully affiliated to OI. The Confederation is supported by the Secretariat, a not-for-profit Foundation with its registered office in The Hague, Netherlands. The purpose of the Secretariat is to provide leadership, coordination and facilitation to the Confederation as a whole, and to provide individual support to Affiliates where necessary. Oxfam International is governed by three constitutional documents: †¢The Constitution which governs the actions of Secretariat; †¢The Code of Conduct which regulates the use of the Oxfam brand and criteria for membership of the Confederation; †¢The Rules of Procedure which relate to the governance of the OI Board, affiliation of new members and dispute resolution practice within the Confederation. Each Affiliate subscribes to the constitution through an affiliation agreement which governs the relationship between OI and the Affiliate, ensuring a commitment to OIs objectives. Oxfam has a great presence on social media including Facebook and Twitter. Organizational Structure of Oxfam Oxfam International Board The OI Board comprises the Executive Director, Chair of each Affiliate, and the Oxfam International (OI) Chair. The Affiliates Chairs are voting members and are non-remunerated. The Executive Directors and the OI Chair are all non-voting-members. The Board also elects the Deputy Chair and Treasurer from among its voting members. The Board is responsible for ensuring that OI is accountable, transparent, and fit for purpose. The constitution and Strategic Plan are also approved at Board level. The Board takes recommendations from Executive Directors and ensures that the Confederation is working to its agreed aims. The Board also agrees membership of the Confederation, selects the Honorary President, the Honorary Advisor, the Board Officers and the OI Executive Director. A number of subcommittees with expert members are also mandated by the Board to assist with specific issues. Executive Directors The Executive Directors (EDs) include each Affiliates Executive Director and the OI Executive Director. The latter works with Affiliate Executive Directors as a peer in order to reach consensus and form recommendations to be made to the OI Board. As well as Affiliate responsibilities, the EDs form the non-voting half of the OI Board. They operate as a group to take those decisions which are not required to be tabled at the Board. They agree the operating architecture of the Confederation and have overall responsibility for initiating and management of the Strategic Plan. They are responsible for organizational alignment, OI budgetary decisions and alignment of their own Affiliates to achieve OIs objectives. Global Team The Global Team (GT) consists of up to 16 senior staff, nominated by Affiliates and selected on merit by the EDs. The GT is accountable to the EDs and membership is subject to a fixed renewable term to ensure rotation. The GT is responsible for the implementation of the Strategic Plan by directly supporting delivery groups and streamlining Affiliate operational plans in areas such as campaigning, advocacy, marketing and programs. Within this remit the GT are required to promote monitoring, evaluation and learning initiatives within the Confederation. Countries of Operation Oxfam works in more than 90 countries, with development programmes in Africa, the Middle East, Latin America, across Asia and in parts of Eastern Europe. Under Oxfam single management system, each of those countries is managed by one Oxfam affiliate to develop programmes jointly. Describe the different stakeholders who influence the purpose of the two contrasting businesses Stakeholder A stakeholder is referred to as anybody who has an interest in an organization or business. An organizations actions, objectives and policies can be affected for stakeholders. There are two main types of stakeholders, namely primary stakeholders who are usually internal stakeholders engaged in economic transactions with the business such as customers, suppliers, creditors and employees. Secondary stakeholders on the other hand are usually external stakeholders who may not necessarily engage directly in economic exchange with the organization, for example, the general public, the government, local communities, activist groups, business support groups and the media. Influence of different stakeholders on Boots and Oxfam There are both internal and external stakeholders for Boots and Oxfam. Examples of stakeholders include the following: Owners or shareholders Managers Employees Customers Suppliers Governments The Local Community Owners: Every given organisation is owned by an individual, partners or a group of shareholders who form a company. In relation to both Boots and Oxfam, they have a great influence on the direction of the organisations. These include the recruitment, selection and employment of workers and volunteers, identifying suitable premises and procuring machinery, equipment, raw materials and resources. The owners have to take these decisions to ensure that the organisations function according to their purposes and objectives as well as remain profitable in motivating their staff to maximise their performance, however, Oxfam in this case is a charitable organisation whereas Boots is a profit making organisation. Employees/Volunteers Employees in the case of Boots and Volunteers in the case of Oxfam are relevant stakeholders. Their performance and how tasks are carried out may affect the organisations objectives. Achieving tasks may require teamwork and therefore they must have good interpersonal skills. And they must follow organisational policies and procedures. The employees of Boots to a large extent may organize themselves in a workers union and ensure that the management provides favourable working conditions, pay structure, flexible shift patterns, among other things. Also, employees in some ways decide how profitable a business would be and can impact on the companys service delivery. Oxfam volunteers and affiliates on the other hand also have much impact on the successful operations of the organisation in meeting the objectives of the charity. Suppliers: Suppliers who supply the goods and services that are provided by the organisations to their customers are key stakeholders for these organisations. They are an example of external stakeholders. Costumers are other types of stakeholders. They are the supporters of the business in the economy and they purchase goods and services to satisfy their needs and wants. Customers are influential and very important to any organisation because when their needs are not met, they go elsewhere and the business looses patronage. Satisfied customers are crucial to the successful operation and growth of Boots as well as Oxfam. Customers are also able to influence the direction of the organisation based on their taste and demands. This helps the organisations to identify changing trends in the market. In the business environment, especially in the case of Boots, the consumer is considered as a priority and influences the objectives of the business. Due to increased competition, it very important the that organisations keep their customers satisfied by offering them good quality products and services. Governments are important stakeholders. The government makes legislations and regulations which govern all organisations and businesses including Boots and Oxfam, for example, Health and Safety Act, Equality Act, Disability, etc. In the case of Boots, the percentage of business rate to pay the government might influence an increase in the prices of their goods and services. Local authority regulations on licence of premises where they operate may influence the opening and closing times of these organisations. Consumer Protection legislation affects how the organisations relates with their customers. Boots on the other hand is required to comply with government regulations in relation to their own organisational objectives. A change in regulation requires a corresponding change in the way the organisations operate, for example, regulations on taxations laws, VAT, immigration, importations, farming etc have effect on the operations of the organisations. The Local Community: The local communityhave a great interest in localbusinesses as they provide them with jobs and training opportunities. Local communities will mainly depend on local shops and organisations and other suppliers. By their activities and operations some organisations create pollution, traffic congestions and noise, however, the local community will not want these to happen as it causes health risks to them. Describe how two businesses are organised: Boots and Oxfam Explain how the style of the organisations help them to fulfil their purposes Organisations or Businesses like Boots and Oxfam are normally organised by their functions, for example, HR department, marketing department, production department, sales department, accounts department, etc, depending on the size of the organisation. The reason is that, grouping them together allows the functions to benefit from specialisation and division of labour which then results in lower unit costs and a greater efficiency in achieving organisational objectives, whereas in some extreme cases, it may also lead to departmental rivalry. Larger organisations might have a number of businesses within the whole company. This would be coordinated by a Head Office, where all the major decisions are made. This explains why various organisations are organised structurally as follows: Organisational structures Hierarchical structures Flat Structures Tall Structures Organisational structures An organisational structure is a system used to define a hierarchy within an organisation.They can be structured by:Function the part of an organisation designed to meet a purpose. It has the advantage of each department focusing on its own department, but a disadvantage of creating a gap between top and bottom of the chart, and coordination may take too long. For example, Boots has the HR department which is responsible for hiring and firing.Geographical area where the business is located. The advantage is that it serves local need better, but may result in conflict between local and central management.Product group having separate divisions, with an advantage of helping people meet customer needs, however, there may be duplication of functions. Type of consumer different areas that deal with different types of customers. Flat organisation structures are structures with fewer levels.Advantages†¢ easier decision making †¢ greater communication †¢ people can take more responsibility Disadvantages †¢ many people will be involved with decision making †¢ limited to smaller organisations Tall Structures A tall structure is a long chain of command. As the organisation grows, the structure grows taller where each manager controls a certain group of people. Advantages†¢ Bigger opportunities for workers to reach higher levels of the structure.Disadvantages †¢ More people reporting to the top manager Hierarchical structures Hierarchy is a system in which members of an organisation are ranked according to authority. Advantages†¢ Employees know who to report to when there is an issue or there are any questions that need to be asked. †¢ Helps new employees by letting them know who they are working with. †¢ Helps to organise the workload. Disadvantages†¢ organisational charts have to always be updated but keeping them up to date can be hard especially for large companies Hierarchy is a system in which members of an organisation are ranked according to authority. A hierarchical structure is a pyramid-shaped structure that only has one person at the top and very few individuals that can directly report to him/her. Advantages†¢ it is easy to see what each team is called and how many members each team has and how they relate to the other members in the team Disadvantages †¢ it is harder for people that are on the lowest level of the structure to get to directly report to the one at the top A business whose decision-making originates from one place only is known as a centralised organisation. Normally the Head Office will decide on the major elements of strategy, no matter where the manufacturing plants and sales teams are positioned around the country or globe. This means that there are good opportunities for economies of scale. Other businesses, especially multinationals will opt for a more decentralised organisation where the individual businesses within the whole company group, make decisions for themselves. This means that there is more opportunity to react to the changing marketplace, which is one of the advantages of a small firm. However there is a possibility that these organisations which may operate in different parts of the world like Oxfam might be duplicating research or not bargaining in such a strong position as a bigger overall company. When a business reaches a certain size it might split into different departments. These departments will specialise, employing people with expertise in these areas. The main departments in a well-established business are typically: A hierarchical style organizational structure means that there will be fewer people at the top of the company managing the people below. It allows the directors to make the key decisions regarding the operations of the organisation. Describe the influence of two contrasting economic environments on business activities within a selected organisation Different economic environments affect business activities within organisations such as Boots and Oxfam, some of them are discussed below: Demand Demand is defined as the quantity of goods or services that consumers and businesses or customers are willing and able to buy at a given price in a given time period. Market demand is the sum of the individual demand for a product from buyers in the market, in this case, the products or goods and services of Boots and Oxfam. Supply Supply is an economic concept that describes the total amount of a specific goods or services that are available to consumers. Supply can also relate to the amount available at a specific price or the amount available across a range of prices if displayed on a graph. This is illustrated in the diagram below: As seen in the diagram above, considering demand and supply together, the supply relationship and demand relationship basically reflect each other at equilibrium, and the quantity supplied and quantity demanded intersect and are equal. As in the diagram above, supply is illustrated by the upward blue sloping line and demand by red downward sloping line at a price of P* and a quantity of Q*. The quantity of Boots and Oxfam goods and services demanded and the supply intersect at the Equilibrium Price. At this stage, suppliers are selling all the goods that they have produced and consumers are getting all the goods that they are demanding. This is the optimal economic condition, where customers/consumers and producers of goods and services are equally satisfied. Change in Demand for Goods and Services provided by Boots and Oxfam A change in demand will cause equilibrium price and output to change in the same direction. a). A decrease in demand will cause a reduction in the equilibrium price and quantity of a good. The decrease in demand causes excess supply to develop at the initial price. Excess supply will cause price to fall, and as price falls producers are willing to supply less of the good, thereby decreasing output. b). An increase in demand will cause an increase in the equilibrium price and quantity of a good. The increase in demand causes excess demand to develop at the initial price. Excess demand will cause the price to rise, and as price rises producers are willing to sell more, thereby increasing output. Change in Supply of Goods and Services provided by Boots and Oxfam A change in supply will cause equilibrium price and output to change in opposite directions An increase in supply will cause a reduction in the equilibrium price and an increase in the equilibrium quantity of a good. The increase in supply creates an excess supply at the initial price. Excess supply causes the price to fall and quantity demanded to increase. An decrease in supply will cause an increase in the equilibrium price and a decrease in the equilibrium quantity of a good. The decrease in supply creates an excess demand at the initial price. Excess demand causes the price to rise and quantity demanded to decrease. Changes in Demand and Supply of Goods and Services provided by Boots and Oxfam If demand and supply change in opposite directions, then the change in the equilibrium price can be determined, but the change in the equilibrium output cannot. A decrease in demand and an increase in supply will cause a fall in equilibrium price, but the effect on equilibrium quantity cannot be determined. For any quantity, consumers now place a lower value on the good, and producers are willing to accept a lower price; therefore, price will fall. The effect on output will depend on the relative size of the two changes. An increase in demand and a decrease in supply will cause an increase in equilibrium price, but the effect on equilibrium quantity cannot be determined. For any quantity, consumers now place a higher value on the good, and producers must have a higher price in order to supply the good; therefore, price will increase. The effect on output will depend on the relative size of the two changes. If demand and supply change in the same direction, the change in the equilibrium output can be determined, but the change in the equilibrium price cannot. If both demand and supply increase, there will be an increase in the equilibrium output, but the effect on price cannot be determined. If both demand and supply increase, consumers wish to buy more and firms wish to supply more so output will increase. However, since consumers place a higher value on each unit, but producers are willing to supply each unit at a lower price, the effect on price will depend on the relative size of the two changes. If both demand and supply decrease, there will be a decrease in the equilibrium output, but the effect on price cannot be determined. If both demand and supply decrease, consumers wish to buy less and firms wish to supply less, so output will fall. However, since consumers place a lower value on each unit, but producers are willing to supply each unit only at higher prices, the effect on price will depend on the relative size of the two changes. Describe how political, legal and social factors are impacting upon the business activities of the selected organisations and their stakeholders. Political, economic, Social, Technological, Environmental/Ecological and Legal (PESTEL) factors/analysis is an effective method to analyze the impact of global forces on UK Business Organizations including Boots and Oxfam. Political: There are many external environmental factors that affect the operation of organisation like Boots and Oxfam. These include political, legal and social factors. Politically, many aspects of government policy can affect business as all organisations must follow the law. Managers must consider how upcoming legislations can affect their activities. The political environment can impact Boots and Oxfam in many ways. It could add a risk factor and lead to a major loss. Political factors have the power to change results. It can also affect government policies at both local and national levels, so Boots and Oxfam should be ready to deal with the local and international outcomes of politics. Changes in the government policy make up the political factors. The change can be economic, legal or social. It could also be a mix of these factors. Increase or decrease in tax could be an example of a political element. The government might increase taxes for some companies and lower it for others. The decision will have a direct effect on the business operations of Boots and Oxfam. Government interventions like shifts in interest rate can have an effect on the demand patterns of Boots and Oxfam. Some factors create Inter-linkages in many ways, for example: Political decisions affect the economic environment. Political decisions influence the countrys socio-cultural environment. Politicians can influence the rate of emergence of new technologies. Politicians can influence acceptance of new technologies. The political environment is