Literacy in Narrative of the Life of Frederick Douglass Essay

Literacy in Narrative of the Life of Frederick Douglass - Essay Example The paper discusses the value of narrative. Douglass’s narrative is important since it debunks many of the theories that had currency during the period of slavery and it also, makes clear the importance of literacy in the movement against slavery. The ability to read is continually held up as the magic wand that would enable African-Americans to lead lives of dignity and respect. The instruction that Douglass received from the mistress of the household where he was a slave in the knowledge of language is a turning point in his life. He is able to expand his horizon of knowledge through reading. As is the case with education that was introduced in colonies by colonial powers, this education that Douglass receives makes him want to learn more. Moreover, the knowledge that he receives also awakens in him a thirst for freedom. It is literacy that impels him to question the ways of the world and the organizing structures of southern society that believed in the inherent inferiority of African Americans. The people of these parts were characterized by an urge to retain the structures of slavery even after it had been abolished in the north. This was for economic reasons, since the labor on the cotton plantations that sustained the economy of the old south was almost entirely black. The immense profitability of the plantations depended a great deal, on the almost free labor that was extracted from the black slaves who were also subjected o inhuman torture on the plantations. The need for documentation is what the production of the book stands for. A documentation of the sufferings of the black slaves of America was necessary for a solution to the problem to be found out. This was however, not in the best interests of the people who drew their livelihoods and their luxurious lifestyles by exploiting the poor slaves. This is the reason why Mr. Auld is always critical of the efforts that Mrs. Auld puts in into helping the education of Frederick Douglass. He fears that Douglass too would attempt to escape to the north in search of his freedom. This betrays an understanding of the cruel and exploitative nature of the institution of slavery on the part of white landowners who employed black slaves under conditions that were extremely inhumane. When Mr. Auld denies Douglass the permission to learn how to read, Douglass reflects, Whilst I was saddened by the thought of losing the aid of my kind mistress, I was gladdened by the invaluable instruction which, by the merest accident, I had gained from my master (Douglass, 45). The â€Å"invaluable instruction† of knowing the value of literacy and the associations of freedom that literacy carried changes the way in which Douglass looks at the manner in which he led his life. The knowledge sows in him the seeds of rebellion and makes him want to escape to the north. Behind this urge is the love for freedom which Douglass feels is a natural impulse on the part of any human being whose senses have not been deadened by the yoke of slavery for ages. This impulse leads him

Global Financial Crisis Coursework Example | Topics and Well Written Essays - 2000 words

Global Financial Crisis - Coursework Example The intention of this study is a financial crisis as a situation where economic markets are interrupted because of controlled credit to businesses and households and the real markets of services and goods are unfavourably affected. There are immense causes or roots available for a financial crisis irrespective of any nation. Basically, the structural factors like confusion arising between the free and the continuous deregulation of markets, a remarkable rise in the role of investment markets prevailing in both banking and non-banking economic organisations, rapid use of new global monetary mechanisms, declining transparency of the free markets, increasingly spreading out high business risks, inequality in a particular businesses origination and distribution factors among others are a few of the major causes or roots of a financial crisis. Also the general factors like regular conflicts regarding the market interests among the free and capital market contributors, deviation between in dividual bank interest rates with central bank’s policy rates, extremely minimum risk-free interest rates in major economies like the US and Japan among others, growing gap between maximum capital profits and low cost of capital, spreading out unfavourable low credit difficulty across all mechanisms also constitute a few of the crucial roots of a financial crisis that are prevailing in a particular organisation or in a particular nation. (Alliance of Liberals and Democrats for Europe, 2008). In the paper, the regulatory failures that especially the western industrialised countries faced and which led to the universal economic crisis in the year 2008-09, is examined along with the findings about the causes or roots of the arising financial crisis along with certain immediate tasks that should be followed in order to cope up with the financial crisis has also been discussed. Evolution of the Financial Crisis The international financial crisis was originated with the ‘sub- prime mortgage’ crisis and was eventually faced especially by the western industrialised countries during 2008-09. With the result of increase in rate of interests along with decline in home prices, there was a sharp jump in non-payment and foreclosures. In that particular period, there arose certain doubts regarding the liquidity of those assets and eventually became tough to fetch adequate price (Rangarajan, 2009). As a result of raising this crucial doubt, it gradually started to affect the prevailing institutions for their enormous investments made in their respective products. Thus, the entire financial system of the western industrialised countries was recognised to be in an acute crisis. There was a mutual distrust among the financial institutions in the western countries which led to freezing up of several markets including the inter-bank market. This crisis in a financial system had moved to affect the real sectors in various significant methodologies (Rangarajan, 20 09). Due to the evolution of financial crisis during 2008-2009 in the western industrialised countries, the emerging market risks, the bank lending flows, the foreign direct investment (FDI) flows and the export volumes among others had turned negative. The economic activities were contracted rapidly and particularly the western industrialised countries experienced large decline in their respective industrial production which weakened their credit growth (Berglof, 2010). Causes of the Financial Crisis in Western Industrialised Countries The financial crisis has been brought about by a combination of unsuitable monetary policies, extreme risk taking of certain financial organisations and

Data Execercise for Priciples of Macroeconomics Assignment

Data Execercise for Priciples of Macroeconomics - Assignment Example The Real GDP between these two periods reduces by 3.5%. Inflation and changes in prices of products causes a significant difference between nominal and real GDP percentages (Bea.gov, 2015). With nominal GDP and real GDP values, one can derive an index of the price level in the year. This index is referred to as GDP deflator and its formula is given by: Real GDP values are not impacted by changes in prices; it is only affected if there are changes in the quantity. To determine the purchasing power of an economy with price adjustments real GDP values are used. Nominal GDP values are used to determine the total value of services or products produced in an economy within one year (Bea.gov, 2015). Gross Domestic Product is an approximated value of the total amount of a country’s products and services, within its boundary, by its citizens and foreigners, calculated over a one-year period. Whereas Gross National Product is an approximated value of the total amount of services and products, by citizens of the country, within its lands or on foreign territories, computed over the course of one year (Bea.gov, 2015). GDP is used to assess the strength of a country’s economy, whereas GNP is used to assess the economic performance of citizens of a certain country. Both these values can also be used in analyzing the distribution of wealth in the economy or also calculating average purchasing power of a person in a country (Bea.gov, 2015). National income is the total value of a countrys output production of new services and goods produced in one year. It measures the monetary value of the production output of services and goods produced in an economy over a period (Bea.gov, 2015). The National income was higher than GNP. To determine NI from GNP you use the following formula, GNP= GDP + NR (Net income from assets abroad (income receipts). Depending on the factors, GNP can be either lower or higher than GDP. The ratio of domestic to

The three world of bali Movie Review Example | Topics and Well Written Essays - 250 words

The three world of bali - Movie Review Example These midnight-to-dawn performances can be viewed from either side of the screen and also from behind the puppeteer. The ancient literary texts, collected in the old Javanese language of Kawi and Sanskrit (The Balinese Digital Library), are captured on Lontar leaves. These leaves come from Lontar trees that belong to the family of palm trees. The Lontar manuscripts are placed in boxes or bags for proper protection. The older women dancing in Gambuh dance and other performances are seen to be dancing closer to the ancestral shrines in temples. They do so as to honor their ancestors in this endless cycle of rebirth. For Balinese, the idea of time differs from ours. Flowers are seen to have a short time cycle, a rock to be have a much longer cycle while humans are somewhere in between. For them, there is never an end, but a continuous cycle. Balinese Hindus call their religion "Agama Tirtha" because water plays a very important role in their life. Water, represented by a circle in the Hindu tradition, symbolizes completeness and the un-manifest. The Balinese carefully plan out and stagger the use of Balis water supply. Water temple rituals promote a peaceful relationship between people and their environment. When changing the system, many problems were faced with problems such as of water, mice and other pests. Eka Dasa Rudra, in Bali, is held every one-hundred years. In 1963, upon the urging of then President Sukarno, Balinese priests organized to hold the ritual before the exact date it was supposed to be held on. Preparations were met with the first eruption in recorded history of Balis great volcano. This terrible disaster was seen as a confirmation of the gods and demons powers and the necessity of honoring the traditional calendar. The central temple was miraculously spared when the volcano erupted. The Balinese people saw this as a grand

Successful business plan Assignment Example | Topics and Well Written Essays - 1500 words

Successful business plan - Assignment Example They have designed their business to halt the speeding industry of car abandoning and transfer this momentum to speed up their business of recycling the abandoned cars and reselling their spare parts. They have targeted the middle class locals and expats who look around for savings with quality control (Othman, 2010). Zug Al Arbat Customers would be allowed to enjoy quality spare parts as it aims to stand the market for long as the suppliers of spare parts. The story prides itself in processing a trouble free solution for those looking for disposing off their cars and finally producing it to produce useable spare parts at the most reasonable price possible. The market feasibility is really strong and progressive since transportation industry of Saudi Arabia is growing real fast. The management team has five representatives. They all have invested in the business and stand as the shareholders. 2. Company Description Zug Al Arbat is a new name in automobile industry that aims at abando ned vehicle collection and its disposal through performing the entire processing of this activity. The totally worn out vehicles would be crushed for recycling and others with a stand able position would be used for refining their spare parts and fixing to other vehicles (Alaska Department of Administration, 2011). Zug Al Arbat aims at targeting the middle class of the local Saudis and majorly the expats who have been to the foreign land of Kingdom of Saudi Arabia to earn and save. Majority of these expats do not spend lavishly on their lifestyles. They look for quality affordability that can be maintained for a longer time period at relatively lower costs (Saad A.H. Al Gadhi, Rasin K Mufti and Daniel F. Malick, 2002). The unique selling preposition of this business would be quality to the cost conscious category that aims not for luxury but quality with low costs. Through its extensive contacts and market knowledge, the company has an idea that this gap has as yet not been filed pr operly by any company (United states Environment Protection Industry, 2011). The detailed activities that Zug Al Arbat aims to cater starts from abandoned Vehicle’s Transportation to its workshop, where the vehicle would be safely examined and then preceded for Fluid Removal or the removal of any hazardous metals for instance, deposited mercury (Writing Club , 2009) . The totally worn out vehicles would be than preceded for crushing. After that, the vehicle would be shredded and finally the metal would be ready for recycling (Seatlle, 2013). 3. Strategic Development The biggest advantage Zug Al Arbat aims at providing is to reduce the car abandonment ratio. After digging in to the reasons of car abandonment, they aim at targeting those people, for instance, expats who cannot afford to pay back car loans to call Zug Al Arbat helpline and sale the car at a scrap value. Another big advantage that the company can expect to have for itself is a good government support, since vehic le abandoning is a major nuisance issue for the government of Kingdom of Saudi Arabia at an increasing rate (Saad A.H. Al Gadhi, Rasin K Mufti and Daniel F. Malick, 2002). 3.1 Business Constraints: The working feasibility of the company depends upon the some of the following factors effecting the cost and revenue: The price of the scrap metal. Proximity of the metal recycles. The further away the metal recycler is, the higher the cost of transporting the vehicle. During the initial days

The Prevalence of Co-Occurring Disorders Essay Example for Free

The Prevalence of Co-Occurring Disorders Essay When a counselor has a new client they are working with, the client has to be assessed. When being assessed the counselor has to determine what issues the client may have. Through being assessed, the counselor may come to realize the client has more than one issue which is called co-occurring disorders. At this point the client will have to be treated for more than one disorder to effectively overcome the problems they are facing. Within this paper one will locate the prevalence of co-occurring disorders, mental health and substance abuse or dependency. Services, U. D. (2005) states that substance abuse and mental disorders became associated in the late 70’s. Both substance abuse and mental disorder communities realized that the two were associated with not just depression but substance abuse as well. At that time, 50 to 75 percent of clients were reported to have co-occurring mental disorders and co-occurring substance abuse users were between 20 to 50 percent. Researchers have demonstrated that clients with co-occurring substance abuse and mental illness disorders can be beneficial with treatment. Even if the clients have serious mental disorders (Services, U. D. , 2005). With the prevalence of co-occurring disorders, Services, U. D. (2005) states that effective treatment and services is needed to be readily available for those who are in need of help. Many treatment facilities are not ready to treat those who have more than one disorder which means that one disorder is treated, while another is left untreated. After which, the client can continue to have relapses with abuse because the other disorders were not treated. What was considered to not be surprising personally is that fifty-three percent of those with COD whose addictive behaviors with alcohol abuse or dependency also had mental disorders sometime during their life (Services, U. D. , 2005). Also 59 percent of the respondents who had lifetime mental disorders were illicit drug abusers, while 71 percent of those who used illicit drugs over their lifetime had alcohol abuse or dependence as well (Services, U. D. , 2005). This is found not to be surprising because so many people abuse drugs over a lifetime that once they have reached their personal level of high, they tend to switch out to another drug which they believe will fulfill the gap in the word â€Å"high† they are looking for. A statistical piece of information that was interesting is that how the number of mental disorders increases as the number of substance abuse disorders increases as well. Services, U. D. (2005) states the likelihood of mental disorders rises alongside with substance abuse dependencies. With the rise of both abuses at the same time, it complicates treatment for the mental disorder patients that have drug use however, multiple drugs is normal for those who are substance abusers (Services, U. D. , 2005). The reason this information is found to be interesting is because with the two disorders rising at the same level, it appears that the challenges will be harder and more co-occurring disorder patients are going to need help with their issues. As a counselor, one must be dually competent to treat these clients or have staff available to treat the clients who have co-occurring disorders to ensure an effective outcome. Differences and Similarities in the Mental Health and Substance Abuse Systems One similarity of the two systems is that they both are defined by a combination of administrative leadership, regulatory oversight, and the funding. Another similarity is both systems have services that are organized into programs that treat individuals for the illness they are suffering from so the client can learn to have stability in their life. Ongoing treatment and rehabilitation is another service that both systems have available for the clients (Services, U. D. , 2005). One difference between the two systems is that the substance abuse treatment system treats substance use disorders. The services for the substance abuse treatment system are geared towards acute stabilization, active treatment, and engagement. The mental health service system treats individuals for mental health disorders. The services for the mental health service system are geared towards acute crisis intervention that is available for individuals who has been diagnosed with Serious and Persistent Mental Illness (SPMI). Another difference is the substance abuse treatment system is focused towards treating the client to become abstinence from illicit drug and or alcohol use. The mental health service system has case management, psychiatric rehabilitation services, and if needed services that will house the patient if they have been classified with having SPMI (Services, U.  D. , 2005). With all said co-occurring disorders can be located in just about any population. If one is dependent on a drug and or alcohol and has mental issues as well, both substance abuse and mental health disorders need to be treated. One issue cannot be treated and the other left untreated. Ongoing treatment programs and rehabilitation services is available to clients so each individual can live a healthy stabilized life.

Strategic Analysis Of First Choice Holidays Tourism Essay

Strategic Analysis Of First Choice Holidays Tourism Essay This report is based on the strategic analysis of First Choice Holidays PLC, one of the worlds leading package holiday companies. An analysis of the companys internal and external environments will be undertaken resulting in the researchers findings of the opportunities and threat that the industry faces. A look at the industrys competitive forces will determine show the profitability of different industries and the data found, analysed showing the different external competitive forces that affect organisation and how information can be used to counter them. A strategic analysis of the company will show the companys competitive and financial strength in which the companys strengths and weaknesses will be highlighted. A strategic fit which will indicate whether the companys mission and strategies fits its internal capabilities and its external environment. 1.0 Market Environment Analysis of First Choice Holidays PLC 1.1 History First Choice Holidays PLC, trading name of TUI UK limited is part of the TUI Travel PLC Group of companies, one of the worlds leading travel companies, which operates in over 180 countries. The company boasts of having more than 30 million customers worldwide in 27 key source markets such as the United States, Italy, France, India and the United Kingdom. In addition to First Choice Holidays, the company has over 200 brands which are comprised of market leading mainstream brands and specialist brands. The company operates in four sectors: Mainstream this is the largest sector in terms of the companys financial performance and employee numbers. It comprises of leading tour operators and power brands as well as it operates 146 aircraft and serves 22 million customers. Activity this sector has over 40 activity travel businesses that operate under five divisions which are Marine, Adventure, Ski, Student and Sport. The adventure businesses take more customers to iconic adventure destinations than any other operator and serve 1.1 million customers. Specialist and Emerging markets this is an international portfolio of travel businesses focusing on specific destinations, premium travel experiences or particular customer demographic segments, often with differentiated and exclusive products. Accommodations and Destinations this sector sells and provides a range of services in destination to tour operators, travel agents, corporate clients and direct to consumers worldwide. Some services include hotel accommodations, cruise handling and round trips for customers. TUI Travel operates its headquarters from the U.K and employs approximately 50,000 people in over 200 travel businesses in the world. First Choice Holidays PLC, formerly Owners Abroad (Wholesale) Limited and Owners Abroad PLC was formed in 1973. After launching an airline, Air2000, the company moved into Specialist holidays. The company was restructured and rebranded into First Choice Holidays PLC after several acquisitions and joint ventures with various tour companies and cruise liners. The group then structured itself into four sectors: Mainstream, Activity, Specialist and Online Destination Services before the merger with TUI Travel PLC in 2007. First Choice was awarded the Most Environmentally Responsible Large Tour Operator (2007-2009) from the British Travel Awards. 1.2 Vision and Strategic Goal Since First Choice merged with TUI Travel, it shares the same vision and strategic goals. The companys vision statement is Making Travel Experiences Special. The companys strategic goals are to create superior shareholder value by being the leading global leisure travel group providing its customers with the widest choice of differentiated and flexible travel experiences to meet their changing needs and focusing their strategic initiatives for profitable growth. These include developing the companys business model, continuous efficiency improvements and development of growth opportunities. 1.3 PEST Analysis According to G. Johnson et al. in the text Exploring Corporate Strategy, PEST stands for Political, Economical, Social, Technological, Environmental and Legal. It provides a comprehensive list of influences on the possible success or failure of particular strategies that First Choice may face or is facing at present. Political With the governments hiking of aviation taxes and Air Passenger Duty (APD), this causes airline tickets to be expensive, therefore discouraging prospective customers from choosing the package holiday company. Political unrest in some countries may cause customers to decide on not travelling to that particular destination out of fear for their safety. Impact on individual of anti-terror measures likely to increase inconvenience of some travel options. The governments Fuel Price escalator is a way of government making money while protecting the environment by discouraging people to travel less. The May 2010 British elections caused political instability with certain actions destabilising the whole of Europe. The government can form new regulations under which these companies can operate which may or may not be positive. Economical The current inflation rate of the U.K is 3.1% which affects air fares, clothing, food etc. With the rise in petrol fuel which increased by 3% above inflation, customers are feeling the pinch of this and are less likely to choose taking a vacation with any package holiday company. The unemployment rate is at 7.7% which lowered by 0.1% over the last quarter. Having a rise in employment will raise confidence in consumer spending. The UK Pound Sterling Exchange Rate has shown recent developments which are indeed very much favourable for the citizens of the U.K. travelling abroad. At present the UK Pound Sterling Exchange Rate has posted the UK Pound Sterling at nearly double the worth of the US Dollar, which means that when British citizens travel to the U.S. they will be able to draw double bargains for their moneys worth.   Social The number of people purchasing on the internet has been on a constant rise. In 2009, 18.31million U.K households have access to the internet. In a survey it was found that 69% of U.K households use the internet to purchase services related to travel accommodation. Increased popularity of foreign travel leading leads to a boom in demand for air travel. However, this has been adversely affected by international terrorism which causes concern for the safety and security of future package-holiday makers. The interaction between tourists and the chosen host community can be one of the factors that may affect a community as tourists may not be sensitive to local customs, traditions and standards. Peoples life style changes cause package holiday companies to now offer customised packages and online booking facilities to meet customer expectations. Technological Today more companies are choosing to broadcast their products via the internet. Online booking has been one of the biggest factors affecting the package holiday industry. U.K residents are now constantly using the internet to book their holiday trips which saves on time for them as well as providing convenience. Advertising on the internet has been proven to boost sales for companies; more and more people are using the internet as a way to communicate their needs and wants to the outside world. 1.4 Porters Five Forces Analysis Figure 1. The Five Forces That Shape Industry Competition First Choice is in a very dynamic and competitive industry, the Porters Five Forces Model was created to show the profitability of different industries. This model is used for analysing the different external competitive forces that affect organisation and how information can be used to counter them. The following is an analysis using the model: Threat of New Entrants First Choice has direct ownership of its own airline and hotels. New entrants may not have the capital for such an investment and therefore may depend on external airlines and hotels to provide their customer with a service. New competitors may not possess the know-how or have the necessary experience to begin operating a package holiday business. Government regulations provides a list of rules that new competitors have to take into consideration before beginning operation, some of which may pose a problem for beginners in this industry. In an already highly competitive market, there will be the issue of pricing to new competitors. Pricing packages in a way that it may be attractive for holiday travellers without being too low so that it may end up running at a loss. Threat of Substitute Products or Services First Choices main competitor, Thomas Cook, has dropped its prices to compete with them for lowest priced package holidays. If successful, customers may be lead to choose that company and divert from the services of First Choice. Competitors may not possess assets such as its own airline or hotel but offers the same services at a cheaper cost. Destinations that the company may not have package deals for, other competitors may provide causing prospective customers to switch to the competitors services. Bargaining Power of Buyers Buyers can dictate the price of package holidays being that the industry is a highly competitive one. Buyers have a lot more choices on package holiday services to choose from. Market research has shown that buyers are taking fewer 7/14 night packages causing package holiday companies to attempt differentiation and specialisation of certain package deals to cater to those who take shorter trips. The threat of buyers going directly to suppliers is possible. The purchasing of airplane tickets from the airline and the booking of accommodation is an imminent threat to the industry. Convenience is key for todays buyers. With the internet customers would choose the company which can provide the complete package holiday service without leaving the comfort of their homes. Bargaining Power of Suppliers If oil prices rise, suppliers of fuel for the airlines may raise their prices. Fuel suppliers can dictate prices for their product depending on the demand for flights. Taxes applied to the cost price of fuel can affect the cost of package holiday deals. Suppliers will have high negotiation powers for those package companies now entering the market but for those experienced and large companies such as First Choice or Thomas Cook, there will be a balance of power. Rivalry Among Existing Competitors Thomas Cook, the main competitor for First Choice and parent Company TUI Travel, has joined with the company offering cheap package deals which increased the already existing price competition. First Choice was combined with its sister company Thomson award winning airline Thomson Airline to be one of the top package holiday airline in the UK which is acquiring the Boeing 787 Dreamliner which meant it will be a fifth more fuel efficient than its competitors Flybe and Thomas Cook Airlines. Thomas Cook offers a range of financial services that First Choice does not which includes foreign exchange services, their own prepaid currency card and the recent innovation of creating an app for the Iphone and Android phones. 1.5 Industry Life Cycle Figure 2. Industry Life Cycle Source: http://alife4testing.co.uk/ This model is used to showcase which stage the package holiday industry is at current. The industry is currently in the Shakeout stage of the lifecycle. The barriers to entry are currently high, economies of scale have been achieved, forcing smaller companies to be acquired by bigger companies such as TUI Travel and Thomas Cook or exiting all together. 1.6 Critical Success Factors (CSFs) The Critical Success Factors of the package holiday industry will highlight the key factors that present and upcoming companies should focus on that will bring satisfactory results, therefore ensuring successful competitive performance. Creating a consolidated market Combining companies or products into one provides opportunities for significant cost savings as well as revenue synergies. Having more direct ownership of airlines and accommodation suppliers. Having successful product differentiation will attract more customers from segments such as university students. To raise awareness, influence choice, change behaviour, and develop and promote new products to encourage responsible holiday choices. Maximised web sales and content. 1.7 Opportunities and Threats of the Market Environment Having analysed the market environment of the industry, the following will highlight the various opportunities and threats the market faces. INDUSTRY Opportunity Threat To consolidate the market by taking over smaller companies. The opportunity to come up with new innovative products/services because of the changing consumer market. To build new capital to purchase assets such as aeroplanes and cruise ships, reducing dependency of suppliers with that mode of transport. New mergers and strategic alliances to promote the maximisation of synergy profits. To maximise on the use of the internet market, to make it more interactive for consumers. Low cost airline competitors such Ryanair and EasyJet has relatively low prices. Natural disasters that may occur at destinations or the home country. People owning foreign property wont be willing to take a full package holiday, just a cheap flight. People booking their holidays for themselves and not through the package holiday companies. Threat of terrorist attacks may change a customers perception on safety when travelling. Table 1. The Opportunities and Threats of the Package Holiday Industry Having analysed the market environment of the industry, this paper will now take a closer look at First Choice Holidays PLCs strategies which will explain the companys various operations and the resources to get it done. 2.0 Strategic Analysis of First Choice Holidays PLC Strategy is concerned with matching a firms resources and capabilities to the opportunities that arise in the external environment. The following shows the strategic analysis of First Choice and the tools used. 2.1 Value Chain Analysis of First Choice Holidays PLC A Value Chain Analysis describes the activities that take place in a business and relates them to an analysis of the competitive strength of the business. Figure 3. Michael Porters Value Chain Model Source: http://www.12manage.com/images/picture_porter_value_chain.gif The following is the value chain analysis for First Choice Holidays PLC: Inbound Logistics Providing all working material for travel shops and tour operators. Printing of travel brochures. Liaising with suppliers of fuel for Thomson aircraft. Liaising with financial institutions for the supply of various foreign exchange currencies to be made available online and at First Choice travel shops. Communication with various hotels and other sources of accommodation. Hiring of security for airport parking facilities. Operations Booking and pre-payment of hotels and other sources of accommodations for clients at various destinations. Liaising with different tour operators, transport and excursion providers. Booking and pre-payment of excursions providers. Updating the travel website for online booking. Securing flights for various destinations. Liaising with insurance company, Mondial Assistance (UK) Ltd., for travel insurance for customers. Fuelling of aircraft for flights. Ensuring there is enough on board staff for flights. Outbound Logistics Distributing brochures to customers. Distribution of airline tickets or cruise ship passes to customers. Marketing and Sales Online booking as well as a pre-departure website for new and existing customers. The availability of 300 travel shops spread conveniently across the UK. Advertising of the company and airline by television and print also on the companys website. Call centre staff are readily available for customer support. The offering of special package deals at a lower price. Existing customers sharing their experiences about the company through word-of-mouth. Service The service of travel insurance for all customers. Airport parking so that customers can safely use their vehicles and park instead of hiring alternative transport to get them to the there. The service of Travellers cheques is provided to customers who want to purchase foreign currency. Seats on the plane can be reserved before customers travel, making it easier and more comfortable for a family to sit together. Car hires are organised for customers in need of transport during their holiday. Qualified child care-takers or nannies are provided to customers equipped with toys and other equipment from respected UK brands such as Crayola and Little Tikes. Firm Infrastructure The following departments make up First Choices company infrastructure. Sales Marketing Finance and Admin Human Resources Support Engineering and Research Operations IT and IS Human Resource Management Employees are trained to be knowledgeable about the industry and company. Training is done for employees so that they can assist customers with choosing the perfect holiday option for their budget. Nannies for baby-sitting services are trained and qualified with  NNEB/CACHE (or equivalent). Air hostesses are equipped with the necessary first aid and situation response training. Technology Development Continued development online booking and interactive websites such as the pre-departure site. Outbound dialler system was installed to automate the call-in service for agents, giving them guidance through the many services and products First Choice has to offer. A browser-based management information system enables management to access operational and business information to monitor how calls are made. Procurement Research on various locations for new accommodation according to customers needs and wants. Communication with vendors and other tour operators. Acquisition of the necessary technology needed to run the company. The purchasing of new aeroplanes for flights to more destinations at a greater speed. 2.2 The Strategic Capabilities of First Choice Holidays PLC An organisations strategic capabilities are its capacities, resources and skills that create a long-term competitive advantage. The following shows the strategic capability of First Choice. 2.2.1 Resources and Competences Resources Competences Threshold Capabilities Threshold resources Tangible 300 travel shops in the U.K 14,000 employees Airline First Choice Airways Expedition cruise ships Over  £2 billion in assets Intangible 4th largest package holiday company Brand strength Owner of several market leading brands such as 2wentys Falcon Online booking website State of the art communication systems (MO Communicator) A contributor to an  £13.8 billion revenue Threshold competences Deployment of travel shops in various key areas in the U.K. To create a market leading presence in the Russian market through joint ventures The introduction of Microsoft Office Communicator to implement an IP-based voice network to deliver better customer service. Enhancing customers experience online by ways of after-sales services Investments such as yachts, aeroplanes and expedition cruise ships that provide First Choice with a greater competitive advantage. Capabilities for competitive advantage Unique Resources Tangible Boeing 787 Dreamliner aeroplanes that are able to go greater distances and offers greater fuel efficiency. First Choice Holiday Village designed for families and a 5-star spa concept for couples. Intangible Powerful brand with the merger with the largest leisure company in the world. 37 years in the travel and leisure industry. Relationships with suppliers to retain 150 million bed nights per year. Core Competences Operational profitability which allows First Choice to respond to changes in the trading environment. Possessing profitable capacity by having individual flight allows the company to determine optimum seat capacity by each U.K airport and to ensure the most appropriate aircraft fleet size and type are maintained. Consolidation of aircraft fleet as a fuel conservation measure and to reduce the companys direct carbon footprint. Table 2. Resources and Competences of First Choice Holidays PLC 2.3 The Financial Analysis of First Choice Following a look at the companys resources and competences, a brief analysis of the company is needed to see where it stands in the industry. First Choice is a part of TUI Travel PLC, therefore shares in the groups profitability. Having merged with the group, First Choice has contributed to  £93million in synergy profits as well as the groups overall revenue of  £18.6billion. The following shows a break-down of the companys financial capability in the following areas in 2009: 2.3.1 Profitability Gross Profit Margin This is used to assess  a firms financial health by revealing the  proportion of money left over from revenues after accounting for the cost of goods sold. The companys Gross Profit Margin stood at 8.4% in 2009, an improvement of 1.1% of the previous year. This shows that the companys pricing strategies have been effective. Net Profit Margin This is used to show how much profit a company makes for every  £1 it generates in  revenue  or  sales.  The companys net profit margin stood at -0.77% which states which has improved over the previous year of -2.1%. Therefore this shows a rise in efficiency after all expenses and that have been considered. Return On Assets This gives an idea as to how efficient  management is  at using its assets to generate earnings. The company earned 0.3% from invested capital (assets) compared to 2008s -1.4% loss. As a result this shows the company is earning more money on less investment. Return on Equity This shows the amount of net income  returned  as a percentage  of shareholders equity. The company showed a 1.2% profit made from shareholder investments, a rise from the previous year -0.1%. Thomas Cook, the companys main competitor had a higher return at 2.37%. 2.3.2 Liquidity Current Ratio This is used to determine a companys ability to pay off its  short-terms debts obligations. The companys current ratio stands at 3:5 which means they can pay off its obligations should it become due at that point. Acid Test Ratio This indicates  whether a firm has enough short-term assets to cover its immediate liabilities without selling inventory. The company showed a ratio of 1:2 for 2009, which means that the company has enough liquid assets to cover an unexpected drawdown of liabilities. 2.3.3 Leverage or Debt Debt to Equity Ratio This indicates what proportion of equity and debt the company is using to finance its assets. The company showed a ratio of -3% which means that they were not aggressive in financing its growth with debt and has the ability to repay loans. Total Debt to Total Assets This is used to measure a companys financial risk by determining how much of the companys assets have been financed by debt. The company showed a ratio of 3:4 meaning that 75% of the companys assets are financed by the creditors or debt (and therefore 25% is financed by the owners). 2.3.4 Activity (see Appendix) Asset Turnover This shows the amount of sales generated for every dollars worth of assets. The company showed a ratio of 1.5 which means for every dollar in total asset spent they gain 1.5 in revenue compared to the industrys 0.34 ratio. Despite a drop in revenue, the company still remained profitable and above its competition. It is seen that the company has an edge and is inviting for any investor. The following shows the companies. The following shows the strengths and weaknesses of the First Choice. First Choice Holidays PLC Strengths Weaknesses One of the market leaders in the package holiday industry both domestically and globally. Technologically advanced, creating new ways using technology to make decisions on their own without going physically to an agent. Offers a wide range of comprehensive services that customers enjoy. Ability to consolidate the market. Inability to fully penetrate the Western market resulting in dependency on the European market for revenues. As at August 2010, there was a consistent decrease in bookings following the recurrence of airspace closures, the emergency budget and the UK weather. Accounting errors on the part of executives. 3.0 The Strategic Fit Analysis of First Choice Holidays PLC Strategic fit indicates how well the First Choice Holidays mission and strategies fit its internal capabilities and its external environment. First Choice is the 4th largest package holiday company in the UK. Its main competitors are Airtours, Thomas Cook and its sister company Thomson Holidays, currently Thomsons dominates the industry. According to Investopedia, competitive advantages give a company an edge over its rivals and an ability to generate greater value for the firm and its shareholders. The more sustainable the advantage, the more difficult it is for competitors to neutralize the advantage. It is the companys competitive advantage that allows it to earn excess returns for its members. Having a competitive advantage is important to First Choice because without it, the company will have no economic reason to exist and will just simply wither away. Through the analysis done in this essay, although First Choice is ranked as #4, it still holds an advantage on its competitors. First Choice used the strategy of backward integration, meaning the company purchased suppliers in order to reduce dependency. An example of this would be its own airline and the First Choice Holiday Village. The acquisition of new aeroplanes, the Boeing 787 Dreamliners, would prove to be a major advantage as consumers are now taking responsibility for the environment and with these aeroplanes; the company will showcase environmental performance by reducing their carbon emissions. Having these assets will give First Choice the advantage of delivering products or services of a higher value at a cheaper price, as a result gain cost leadership. Using the internet for online sales has maximised their profits also the company retained their customers while gaining new ones. The companys liquidity and financial situation is stable despite a drop in revenue in 2009, with that they are capable of market consolidation. An example of that would be the acquisition of C.I.T Holidays, a UK based company with extensive operations in Spain and Italy. First Choice has a long history within the industry along with experience. They have proven to be well prepared to any changing environment. The company has achieved high economies of scale because of its access to larger market allowing them to operate with greater geographical reach. They have the ability to create value for money to its customers and have shown to be innovative by way of creating differentiated products such as its pre-departure website, an after-sales service. 3.1 The SWOT Analysis of First Choice Holidays The SWOT Analysis provides information that is helpful in matching the firms resources and capabilities to the competitive environment it operates. First Choice Holidays PLC Strength One of the market leaders in the industry. Ability to offer differentiated products/services. Commitment to customer service. Wealth of knowledge of the industry. Backward Integration which made them spread across the value chain. Strong distribution channels, the strongest being online sales. Weakness A 13.5% reduction in package prices because of a decrease in sales as a result of the recession and events such as the volcano ash disruption in mid-April 2010. A loss of  £69million in revenue in 2009 compared to the year before. Opportunities Further expansion through acquisitions and mergers. With new mergers and alliances, an opportunity to create synergy profits arise. Threat Airlines and hotels are now offering package deals. Threat to Thomson Airlines from low cost airlines such as Ryanair. Terrorist threats or attacks will change customers perception of safety when travelling. In conclusion, First Choice Holidays PLC is strategically fit and has a high advantage over the competition. The company is seen to be attractive for investment, although their profits fell for the previous financial year and sister company Thomson Holiday still stands at number one, but with new products underway, there may be a positive change.