Where, the costs for transporting both cars and passengers will increase, while the fare price will remain the same (at least for a certain amount of time). However, if fuel prices continue to rise, this could mean that ticket prices will have to increase or some type of a fuel surcharge must be imposed. In either case, this would have a negative impact upon demand, as rising costs will force many consumers not to use the company's services. (Irish Passengers Numbers Down 10% 2009)
Then, you have the overall impact that this will have upon consumer demand in general, which could possibly cause an industry wide slowdown. This is because the rising price of fuel, will dramatically affect consumer spending and psychology. When fuel prices are increasing, it will have an impact upon the costs of a variety of goods and services in the economy. Once this occurs, it means that many consumers will reduce their spending, which will cause the economy to slow dramatically. At which point, the company and all its competitors will have extra seat capacity and slowing demand. This will result, in a sharp decline in earnings, as the company could struggle with excess capacity, which would require drastic cuts in service. A good example of this kind of situation can be seen with Irish Continental Group which saw: a 10% decline in passenger traffic, a 5% decrease in cars and a 29% decrease in goods shipped. This is significant, because these result occurred in 2009, when fuel prices had damaged consumer demand so much that it would have profound impact on earnings. In many ways, one could argue that fuel prices and the company's possible exposure to economic forces are the biggest challenges going forward. As these two factors: can cause earnings to become more volatile, while affecting the financial foundation of the company. Therefore, it is prudent to create some kind of strategy that can be used to mitigate these effects as much as possible. (Irish Passengers Numbers Down 10% 2009)
Clearly, the European ferry operators are being affected by globalization. Where, this is causing a number of...
Robin should first establish different departments to fulfill the varied needs of the organization in a systematic and efficient manner. In that regard, Robin should immediately appoint department heads in the following areas: shelter facilities, food storage and distribution, recruitment and hiring, training, and field operations. The head of shelter facilities must solve the problem of ensuring that employees in the field have safe accommodations in remote areas of operation.
Possible Problem with Current Strategies The most obvious conceptual problem is that two of Nike's current goals seem to conflict. Namely, it's expressed intention to increase the integration of it products and product lines and its simultaneous intention to further differentiate its women's "fitness" product lines by specific fitness interest. In principle, both initiatives make sense: increasing overall integration builds brand loyalty and cross-over consumer interest. However, because Nike determined that
Business Major A major in Business Management seems secure, and yet, it could be easily rendered an obsolete concentration. If Business Management were rendered obsolete, it would have adverse implications on the economy, on issues related to social justice, and on the ability for organizations to thrive. Especially during an economic recession, the need to develop future business leaders becomes apparent. Interviews with successful managers who were once students in an
Business Management Business Operations and Systems The objective of this study is to outline the essential components for effective business operations management for a UK business whose products are delivered to the door. The parcel delivery conundrum will be examined using an appropriate system and methodology and a discussion will be provided to support appropriate business operations models. Included will be CATWOE, Root Definition and a detailed picture to illustrate the
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It would make mush more sense to establish a uniform approach to business throughout the organization and to provide centralized training programs (Robbins & Judge, 2009) to ensure that all of the House Handy outlets operate the same way and that new hires learn the way the organization does business instead of absorbing whatever they observe in each location. Assume you are the House Handy VP of Sales. How do
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