The impact of Accounting Information System on the audit process Essay

The impact of Accounting Information System on the audit process - Essay Example In the field of accounting and auditing, the performance of functions has a great role in which auditors and accountants should expand their knowledge to adapt to these changes. Accounting information system (AIS) is the new way of preparing and analyzing financial statements in relation to technology advancement (Orwel, n.d.). This newly acquired system does not only end up to the preparation but also it extends up to the auditing process. The aim of this paper is to investigate the impact of accounting information system (AIS) on the audit process. It is important to know how AIS is affecting the audit process and on the work of the auditors and accountants. The focus is to give an overview, objectives and motivations, and some proposals of the implementation. According to Orwel (n.d.), â€Å"accounting information system (AIS) is a system of records, usually computer based, which combines accounting principles and concepts with the benefits of an information system...† Making the accounting activities with the use of computer makes it easier and time safe, but threats in data collection and data processing should not be ignored for it comes from variety of sources (Beard & Wen, 2010). Decision makers should have a control on the system so that threats can be avoided. Enormous amount is needed in the implementation of AIS, it is quite expensive for those small enterprises but the benefits can surpass the amount of investment (Salehi, et al., 2010, p.188). On the other hand, the appropriateness of financial information produced by an accountant is being examined by an auditor, either by operational, internal or compliance. It is the role of auditing to objectively evaluate the entries based on established criteria before the results are given to the interested users (Kelechi, 2007, p.14). The information subject for audit process is now computerized that is why auditors are disturbed whether the information in the system is reliable for

Migrant labor and unions Essay Example | Topics and Well Written Essays - 1000 words

Migrant labor and unions - Essay Example ding housing, transportation, bathing facilities, wages comparable to those of American laborers, and contracts written in Spanish; (US Government, p 1760) discrepancies between the guaranteed protections and actual treatment were, unfortunately, the norm. Many Mexican workers found themselves working in sub-standard conditions, and often faced hostility from the local population. Still, they were supposed to pay well by Mexican standards, and so many took the risk of winding up in lousy contracts. Important for our purposes is the way the Bracero program managed to establish the kind of circular migration pattern still a part of now mostly illegal Mexican migrant work: workers would come to the US for some time, return to Mexico during the off season, and then come back to the US to make more money with the next crop. It also established a history of broken promises to migrant workers on the part of farm labor employers, and minimal repercussion on those who would take advantage of migrant laborers. In the late 1960s, the Bracero program and all of its extensions and revised forms officially ended, but migration by Mexican workers north in search of agricultural did not. Today, many come for similar reasons as those who came generations ago. Not much has changed since the early half of the twentieth century concerning the motivations for workers to migrate: â€Å"Conditions in Mexico were much the same then as they are now—politically and economically unstable with a corrupt government and massive unemployment... Farmers and peasants tied to Mexico’s feudal economic system flocked by the thousands for a chance to travel to El Norte where work and a new life could be found†. (Bedolla) In the initial stages of the Bracero program, employers were responsible for transporting temporary workers to and from their home location in Mexico. When the program ended, many found that plenty of Mexican workers would make the trip themselves, often suffering

Business Ethics Assignment Essay Example | Topics and Well Written Essays - 2250 words

Business Ethics Assignment - Essay Example The amount of fast food advertising the children are exposed to everyday affects their diet to a great extent. This issue is very pressing as recently the world has witnessed the effects of fast food consumption on their health. In order to calculate the effects of fast-food on the health of people, 3301 black and white adults were interviewed. They were asked to give information about their diets, physical bodily activity and other life style factors. The results showed that those who had fast-food more than twice a week were more likely to gain an extra 10 pounds and has two times greater increase in insulin resistance. (Garner, 2005) The amount of youngsters in the United States who are obese, have type 2 diabetes, and are at the risk of obesity is pressing. (McGinnis et al., 2006) Overweight and obese adults suffer from type 2 diabetes and this is usually linked to other illnesses such as heart disease, stroke and high blood pressure. (Diabetes in children increasing with fast food lifestyle, 2002) A new study by University of California Los Angeles researchers found that advanced heart failure patients with diabetes who are treated with insulin have a death rate four times higher than when treated with oral medications. (Gardner, 2005) In 1960's the number of obese children was approximately 5 percent and in 2002 it increased to 16 percent. This means that the number has tripled in the past forty years. The statistics show how serious a matter this is and why this should be a nationwide concern. 9 million children from the United States are obese and what is worse is that another 15 percent of the children are at risk. (McGinnis et al., 2006) Another very shocking statistic is $100 billion is spent on health-care costs every year. (Gardner, 2005) According to Schlosser, among toddlers in the United States, 21 percent which makes up roughly one-fifth of all the American toddlers, are eating French-fries every day. (Tablac, 2003) The present diet of the children is extremely high in calories, fat, and sugar and is not healthy at the same time. (McGinnis et al., 2006) Fast food is often called unsafe food because of richness in salt and sugar. (Thimphu, 2007) The effects of this unhealthy diet also include diseases later in life including heart failures, diabetes, cancer and osteoporosis. It is now the responsibility of parents, health officials, governments and businesses to realize the magnitude of this problem. They should do something about it so that the children will have a safe healthy future. The diet of these children should change. They should have more intakes of vitamins, fruits, vegetables and whole-grain products. (McGinnis et al., 2006) According to Dr. Julie Gerberding, director of the Centers for Disease Control and Prevention (CDC), the number one health problem in the United States is not SARS. It is obesity that is becoming the number one health problem. (Ruskin, 2003) The Role of MarketingNow the question is how does this work How is marketing of fast food so persuasive that it changes the way people eat. These people include the growing population of both the developed and the developing countries. The marketing of fast food includes its four P's: Price, Promotion, Product, and Placement. Mediums like magazines, television,

The Americans with Disabilities Act Compliance Essay

The Americans with Disabilities Act Compliance - Essay Example The essay "The Americans with Disabilities Act Compliance" analyzes The Americans with Disabilities Act, ADA (1990) which entails civil rights law, which hinders discrimination according to disability. ADA requires the management of organizations to provide appropriate accommodations to the staffs with disabilities. Staffs should be trained on ADA compliance. The training is diverse and ensures that employees with disabilities are comfortable in the work environment. The training should focus on the rights of the employees with disabilities. One right that disabled employees must be given, especially by the management staffs, is promotion opportunities for qualified individuals including the disabled. The employees must also be trained on flexible work arrangements, so as to effectively accommodate staffs with disabilities. For example, assisting employees to telecommute, and hence, work at home effectively using telecommunication devices like the internet enabled computers. The work experience of the disabled staffs can be empathetically improved by all employees. The employees should participate in teamwork. Teamwork encourages equal participation, especially during decision making. The disabled staffs, who embrace team spirit, have adequate opportunities for engaging in communication. The dis abled staffs should be effectively considered in the succession planning. Succession planning ensures that the disabled staffs are continuously equipped with the appropriate skills.

The evolution of human intelligence Essay Example for Free

The evolution of human intelligence Essay The evolution of human intelligence refers to a set of theories that attempt to explain how human intelligence has evolved. These theories are closely tied to the evolution of the human brain and to the emergence of human language. The timeline of human evolution spans approximately 7 million years,[citation needed] from the separation of the Pan genus until the emergence of behavioral modernity by 50,000 years ago. The first 3 million years of this timeline concern Sahelanthropus, the following 2 million concern Australopithecus and the final 2 million span the history of actual human species (the Paleolithic). Many traits of human intelligence, such as empathy, theory of mind, mourning, ritual, and the use of symbols and tools, are already apparent in great apes although in lesser sophistication than in humans. The great apes show considerable abilities for cognition and empathy. Chimpanzees make tools and use them to acquire foods and for social displays; they have sophisticated hunting strategies requiring cooperation, influence and rank; they are status conscious, manipulative and capable of deception; they can learn to use symbols and understand aspects of human language including some relational syntax, concepts of number and numerical sequence.In one study, young chimpanzees outperformed human college students in tasks requiring remembering numbers. This claim was refuted in a later study after it was noted that the chimpanzees had received extensive practice with the task while the students were evaluated on their first attempt. When human subjects were given time to practice, they substantially outperformed the young chimps. Chimpanzees are capable of empathy, having been observed to feed turtles in the wild, and show curiosity in wildlife (such as pythons)[citation needed].Homininae Around 10 million years ago, the Earths climate entered a cooler and drier phase, which led eventually to the ice ages beginning some 2.6 million years ago. One consequence of this was that the north African tropical forest began to retreat, being replaced first by open grasslands and eventually by desert (the modern Sahara). As their environment changed from continuous forest to patches of forest separated by expanses of grassland, some primates adapted to a partly or fully ground-dwelling life. Here they were exposed to predators, such as the big cats, from whom they had previously been safe. These environmental pressures caused selection to favor bipedalism: walking on hind legs. This gave the Homininaes eyes greater elevation, the ability to see approaching danger further off, and a more efficient means of locomotion (see main article for details).[citation needed] It also freed the forelimbs (arms) from the task of walking and made the hands available for tasks such as gathering food. At some point the bipedal primates developed handedness, giving them the ability to pick up sticks, bones and stones and use them as weapons, or as tools for tasks such as killing smaller animals, cracking nuts, or cutting up carcasses. In other words, these primates developed the use of primitive technology. Bipedal tool-using primates form the Hominina subtribe, of which the earliest species, such as Sahelanthropus tchadensis, date to about 7 to 5 million years ago. From about 5 million years ago, the Hominin brain began to develop rapidly in both size and differentiation of function. It has been shown that Great Ape cooperation and communication is severely impeded by their competitiveness, and thus that the apes would revolutionize their culture-bearing ability if they could just shrug off their competitiveness. It is also well known that even early hominins lacked the size and sharpness of their canine teeth that apes use as a threat signal, suggesting prehumans simply had no use for threat signals. That means they had already transcended ape competitiveness and thus developed superior cooperation and communication. There has been a gradual increase in brain volume as humans progressed along the timeline of evolution (see Homininae), starting from about 600 cm3 in Homo habilis up to 1500 cm3 in Homo sapiens neanderthalensis. Thus, in general theres a correlation between brain volume and intelligence. However, modern Homo sapiens have a brain volume slightly smaller (1250 cm3) than neanderthals, and the Flores hominids (Homo floresiensis), nicknamed hobbits, had a cranial capacity of about 380 cm3 (considered small for a chimpanzee) about a third of that of H. erectus. It is proposed that they evolved from H. erectus as a case of insular dwarfism. With their three times smaller brain the Flores hominids apparently used fire and made tools as sophisticated as those of their ancestor H.erectus. In this case, it seems that for intelligence, the structure of the brain is more important than its volume. The social brain hypothesis was proposed by British anthropologist Robin Dunbar, who argues that human intelligence did not evolve primarily as a means to solve ecological problems, but rather intelligence evolved as a means of surviving and reproducing in large and complex social groups. Some of the behaviors associated with living in large groups include reciprocal altruism, deception and coalition formation. These group dynamics relate to Theory of Mind or the ability to understand the thoughts and emotions of others, though Dunbar himself admits in the same book that it is not the flocking itself that causes intelligence to evolve (as shown by ruminants). Dunbar argues that when the size of a social group increases, the number of different relationships in the group may increase by orders of magnitude. Chimpanzees live in groups of about 50 individuals whereas humans typically have a social circle of about 150 people, which is now referred to as Dunbars number. According to the social brain hypothesis, when hominids started living in large groups, selection favored greater intelligence. As evidence, Dunbar cites a relationship between neocortex size and group size of various mammals. However, meerkats have far more social relationships than their small brain capacity would suggest. Another hypothesis is that it is actually intelligence that causes social relationships to become more complex, because intelligent individuals are more difficult to learn to know. There are also studies that show that Dunbars number is not the upper limit of the number of social relationships in humans either

The explosive growth of RyanAir Company

The explosive growth of RyanAir Company The Ryanair Company is undoubtedly one of the most remarkable entrepreneurial stories of the past 10 years in Europe. Furthermore that Ryanair has developed a very outspoken communication style, using advertising and media to a great deal to publicize its revolution in air travel. Ryanair was Europes original low-fares airline and it is still Europes largest low-fares carrier. In the current year Ryanair will carry over 35m. passengers on 300 low fare routes across 21 European countries. Ryanair has 15 European bases and a fleet of over 100 brand new Boeing 737-800 aircraft, with firm orders for a further 125 new aircraft, which will be delivered over the next seven years. These additional aircraft will allow Ryanair to double in size to over 70m. passengers p.a. by 2012. Ryanair currently employs a team of 2,700 people, comprising over 25 different nationalities. Furthermore Ryanair continues a rapid growth in 2005. They started the year by launching two new bases at Liverpool John Lennon Airport and at Shannon in the West of Ireland. In February Ryanair announced orders for a further 70 firm aircraft from Boeing as well as 70 options. This takes Ryanairs total order with Boeing to 225 firm aircraft and 200 options. These new aircraft, which will be delivered between 2005 and 2012, will allow Ryanair to grow to over 70m. passengers per annum, proving that Ryanair is not just Europes original low fares airline, but remains Europes biggest low fares airline, as well as the only airline offering the lowest fares in every European market. http://www.grin.com Aims and objective: Aim of this report is to evaluate the given case study on the topic of Ryanair the low-fares airline by Eleanor OHiggins and critically analysing the current strategy of Ryanair to become successful in the European airline industry while airline business is struggling in Europe. The objectives of this report are as follows. Undertake an environmental analysis of the European airline industry with implications for the budget sector and Ryanair in particular. Analyse how Ryanair has been successful in the European budget airline industry. From the above analysis, critically assess the sustainability of Ryanairs strategy. Research methodology: In this report secondary research method also known as desk research, is being used. secondary research is the most common research method employed in the industry today. It involves processing data that has already been collected by another party. With this form, researchers will consult previous studies and findings such as reports, press articles and previous market research projects in order to come to a conclusion. The relatively low expense in comparison to primary research is the main advantage of this research, as no new research needs to be commissioned. However, its main disadvantage is that the data used in the analysis may be out-dated and therefore return inaccurate results. (www.marketresearchworld.net,) Environment Analysis: The environment is what gives organisations their means of survival. (Johnson et al 2008) We can distribute the environment into layers as follows. Source: (Johnson et al 2008) The Macro-Environment: The macro-environment is the highest level layer. This consists of broad environmental factors that impact to a greater or lesser extent on almost all organisations.(Johnson et al 2008) Macro environment is out of control of any organisation but it could influence the organisations overall activities and functions. The radical and ongoing changes occurring in society create an uncertain environment and have an impact on the function of the whole organization (Tsiakkiros, 2002). To analyse the macro-environment there is a framework which helps to analyse Political, Economical, Socio-Cultural, Technological, Ecological and Legal factors called PESTEL. This analysis of is therefore often known as Pest analysis (Johnson, Scholes, 1999). PESTEL analysis of Ryanair: Political On May 1, 2003, it will mark one of the most important days in recent European history, the continent will see the biggest expansion of EU to date when ten states become new members. For Ryanair new markets will open which suits its growth plans. Stansted airport, owned by BAA, is one of the most rapidly growing airports in Europe (www.baa.co.uk/). BAA plans to build a second runway and terminal there, accompanied by necessary rail and road infrastructure, aiming to double passenger capacity within ten years. Stansted is Ryanairs London base and an expansion would enable substantial traffic increases thereby facilitating consolidation (Johnson Scholes 2002). The Civil Aviation Authority (CAA) is responsible for setting à ¢Ã¢â€š ¬Ã‚ ¦price caps on airport chargesà ¢Ã¢â€š ¬Ã‚ ¦at airports designated by the Secretary of State (www.caa.co.uk). One of these is Stansted, which has hitherto à ¢Ã¢â€š ¬Ã‚ ¦benefited from discounted airport charges and cross-subsidy from the higher charges paid by the airlines at Heathrow and Gatwick airports (Done 18/12/03). CAAs new requirements command airport financing without cross-subsidisation on a stand-alone basis. Consequently discounts will be removed and charges possibly increased. Ryanair has protested as it will raise its costs (Done 20/10/03). Economical Opec aims to keep oil prices within the agreed band of US$22-US$28/bbl (www.opec.org). However, with crude oil now à ¢Ã¢â€š ¬Ã‚ ¦standing at close to $33 a barrelà ¢Ã¢â€š ¬Ã‚ ¦ (www.bbc.co.uk) near a 13-year high, Opec considers increasing its target. With a tight US gasoline market, low inventories and an upsurge in fighting in Iraq, oil prices look likely to remain high or rise Ryanair faces persistently high or rising fuel prices. Sociocultural Holiday home ownership in Europe is increasingly common for Britons. During Christmas sales boomed and analysts believe it will continue as customers are à ¢Ã¢â€š ¬Ã‚ ¦encouraged by the highest employment figures in 28 years, low interest ratesà ¢Ã¢â€š ¬Ã‚ ¦ (Insley 18/01/04) and other favourable borrowing conditions. Ryanair services regional airports, opening up the European countryside to buyers, and this trend means an increase in the possible customer base (Insley 08/02/04). The over-55s now represent approximately one third of most EU-countries populations, and the figure is increasing. Because of better healthcare and financial planning, a significant proportionà ¢Ã¢â€š ¬Ã‚ ¦of senior citizensà ¢Ã¢â€š ¬Ã‚ ¦ are able to indulge in high levels of leisure-orientated consumptionà ¢Ã¢â€š ¬Ã‚ ¦ (Brassington Pettitt 2003). Analysts recommend developing specific marketing strategies for this market highlighting its growing importance (Lohmann Danielsson 2001). Ryanair here has an opportunity to increase its market share. Technological New technology will allow mobile phone and broadband use on-board. Carriers, including Ryanair, can thus increase ancillary services by offering on-line shopping, TV screenings and mobile phone usage against a fee. Furthermore, the satellite link could boost operating efficiency by being used to monitor planes, giving early warnings of problems to ground crews, thereby enhancing safety and minimising grounding (Economist 01/03/03 Economist 01/04/04). Environmental A recent White Paper emphasised à ¢Ã¢â€š ¬Ã‚ ¦the environmental importance of including aviation within the global emissions-trading schemeà ¢Ã¢â€š ¬Ã‚ ¦ (Newman 03/12/03), aimed at providing financial incentives for companies to cut greenhouse-gas emissions and to tax aviation fuel across EU. Presently an increase in air passenger tax is planned, which doubles the  £5 and  £20 economy passengers currently pay for short- and long-haul flights. This will raise Ryanairs prices, possibly deterring the most price-sensitive customers. Legal Ryanair uses mainly secondary airports which enables negotiation of favourable deals with the owners. At Charleroi Ryanair was given 50% off landing fees plus contributions to local amenities, training and marketing costs against guarantee of à ¢Ã¢â€š ¬Ã‚ ¦a certain level of business for 15 years (FT 10/11/03). However, unfair competition was claimed and the European Commission (EC) decided that discounts on landing fees and ground-handling services are illegal, and ordered Ryanair to pay back  £3m. Ryanair fears that high-fare airlines and expensive hub-airports will lobby the EC into investigating other deals, using Charleroi as precedent (Done 29/01/04). Porters Five force analysis The PESTEL factors are important in a relative way as they usually affect all firms in the industry (Bowman Asch 1987). Hence, organisations should also examine their more immediate environment/industry, à ¢Ã¢â€š ¬Ã‚ ¦the group of firms producing products that are close substitutes for each other (Porter 1980). This analysis examines five competitive forces: potential entrants; buyers; substitutes; suppliers and industry competitors, which determine level of industry competition and profitability. Applying this to the budget airline industry enables identification of opportunities and threats to Ryanair in its business environment (Johnson Scholes 2002). Threat of new entrants High start-up costs needed for aircrafts, reservation systems and promotion, negates threat to some extent (Gilbert et.al 2001). The over-crowded market means à ¢Ã¢â€š ¬Ã‚ ¦there are too many budget aircraft playing Europes skies for too little money (Clark 07/02/04). As Europes skies are congested there is a lack of slots (Hanlon 1989) forcing new entrants into secondary airports and less profitable routes. Due to incumbents cost advantages, such as economies of scale and experience curve effects, price wars can be launched against newcomers. However, the market is expanding which pulls in new entrants and reduces the effect of entry barriers (Johnson Scholes 2002). Bargaining power of buyers Price dominated short-haul market with little or no product differentiation. Buyers thus face low switching costs (Porter 1980) As price is à ¢Ã¢â€š ¬Ã‚ ¦more important to passengers than productà ¢Ã¢â€š ¬Ã‚ ¦ (Gilbert et.al 2001) there is low customer loyalty. Procurement managers are now influential in the travel patterns of their business travellers. Threat of substitute products or services Videoconferencing for business companies has not had the impact expected and is no threat (Gilbert et.el 2001). Other modes of transport are no tenable threats generally. However, Eurostar has been winning customers from airlines since its opening and many short-haul flights à ¢Ã¢â€š ¬Ã‚ ¦could be eliminated after 2007, when the fast line to the channel tunnel is completed (Wright 01/12/03). Bargaining power of suppliers The price of fuel is directly related to the cost of oil which is determined by Opec and out of control of the industry (www.opec.org). Budget airlines have work-hard cultures to keep costs down (Gilbert et.el 2001) meaning a scarce number of multi-skilled employees which à ¢Ã¢â€š ¬Ã‚ ¦can bargain away a significant fraction of potential profitsà ¢Ã¢â€š ¬Ã‚ ¦ (Porter 1980). However, carriers tend to experience economies of scale which gives purchasing power. Consequently, airlines are able to negotiate favourable deals with most of their suppliers (Johnson Scholes 2002). Rivalry among existing firms Already very competitive industry. Numerous new entrants intensify competition, although several newcomers have struggled to establish themselves and failed, Debonair and AB Airlines for example. The over-crowded market, and commodity nature of the product, means that airlines are battling to fill planes. Aggressive pricing, efficient distribution and innovative communication mixes are frequent competitive measures. However, carriers vary somewhat in segmentation by targeting different markets (narrow versus wide customer base) and offering divergent routes (regional towns versus main cities) which reduces rivalry somewhat (Gilbert et.al 2001). Nevertheless, competition is intensified as conventional carriers adopts à ¢Ã¢â€š ¬Ã‚ ¦many strategies of the no-frills carriers and continues to cut costs (Done 29/01/04). With low fares but a higher level of service (more frills and main airport servicing) they are a big threat. Mergers, acquisitions and alliances are increasingly used for consolidation and competition. EasyJet bought Go, bmibaby partnered with Germanwings (Economist 01/03/03 Hotten 13/03/04). Ryanair acquired Buzz but paid too much and was forced to close it to boost its productivity. SWOT Analysis: Key Strengths and Weaknesses Strengths Weaknesses Cost-consciousness at every level Isolation of airports Ability to drive down costs Poor judgement in route selection and acquisition Fast turnaround times Targets very narrow market Cross-utilisation of employees Poor brand image Website Negotiation skills Ability to achieve growth Use of secondary airports Key Opportunities and Threats Opportunities Threats The EU expansion The European Court of Justice ruling The Stansted expansion The Stansted expansion EUs ageing population The global emissions-trading scheme Mergers, acquisitions and alliances Low customer loyalty ANALYSIS OF STRATEGIC CAPABILITY A strategic analysis also includes investigation of the strategic capability, the à ¢Ã¢â€š ¬Ã‚ ¦ability to perform at the level required for success (Johnson Scholes 2002). Firms must understand what customers want and adopt product/service features accordingly. To succeed companies need: Critical Success Factors (CSF), features especially valued by customers and used to outperform competition; unique resources, hard to emulate and generates competitive advantage; core competences to meet the CSF, leading to competitive advantage. A number of tools exist to analyse strategic capability. Applying some of them to Ryanair facilitates identification of the organisations key strengths and weaknesses. Value Chain analysis This is a à ¢Ã¢â€š ¬Ã‚ ¦systematic way of studying theà ¢Ã¢â€š ¬Ã‚ ¦activities undertaken by a firm (Thompson 1997) and a means of identifying how competitive advantage is, or can be, created and sustained. The value chain consists of primary and support activities that together produce the profit margin. When the most critical of these are performed better or more cheaply, competitive advantage is created. The activities are à ¢Ã¢â€š ¬Ã‚ ¦related by linkages within the value chain (Porter 1985), meaning that how one is performed affects the performance or cost of another, and key linkages generate competitive advantage. Value activities should be benchmarked, compared against those of organisations both inside and outside the industry, to learn and improve on best practice (Laverick Brown 1992). Primary activities Inbound logistics Dependency on suppliers to deliver fuel as well as food, drinks and duty-paid products to be sold on-board (Gilbert et.al 2001). These need to be stored, handled and controlled upon delivery Low-cost deals are negotiated against promise of large and growing volumes of business (Felsted 04/11/03). Operations Use of standard model plane, Boeing 737, means that Ryanair is à ¢Ã¢â€š ¬Ã‚ ¦able to obtain spares and maintenance services on favourable terms, limits costs of staff training and offer flexibility in scheduling aircraft and crew assignments (Johnson Scholes 2002). A relatively young fleet reduces maintenance, spare and fuel costs. Fast turnarounds (core competence), 25 minutes, is the most important cost advantage as it enables high aircraft utilisation (Felsted 04/11/03). More frequent departures (two more a day than competitors) with few planes increases revenue (key linkage). However, Southwest excels with 15 minute turnarounds as its à ¢Ã¢â€š ¬Ã‚ ¦activities complement each other in ways that create real economic value (Porter 1996). Point-to-point flights mean no interlinking with other carriers. Ryanair can à ¢Ã¢â€š ¬Ã‚ ¦offer direct non-stop journeys, avoiding the cost of providing through serviceà ¢Ã¢â€š ¬Ã‚ ¦for connecting passengersà ¢Ã¢â€š ¬Ã‚ ¦and delaysà ¢Ã¢â€š ¬Ã‚ ¦caused by late arrival of connecting flights (Johnson Sholes 2002). Outbound logistics Use of isolated secondary airports often requires further transport arrangements for customers. Also, some destinations are à ¢Ã¢â€š ¬Ã‚ ¦so geographically obscure that they cant support regular services (Pratley 05/02/04), as evident on some intra-Scandinavian routes for example (Done 04/11/03). This limits the level of market share Ryanair can achieve. EasyJet does the opposite and flies to big cities, but then has to pay higher landing charges which is reflected in their higher prices (Bowley 21/07/03). However, using regional airports saves costs as charges are lower, facilities cheaper and Ryanair can negotiate favourable deals. It also enables fast turnaround times, and more on-time departures as the airports are less congested (Johnson Scholes 2002). 95% of Ryanairs flights are punctual compared to 88% for EasyJet (www.ryanair.com). Marketing and Sales Heavy spending on advertising and promotions to expand its market is reduced as most advertising takes place on the website. There promotion is also used to sell excess capacity, such as two-for-one offers, which creates market awareness. Direct marketing is à ¢Ã¢â€š ¬Ã‚ ¦used occasionally with the customer database (Gilbert et.al 2001), and enables relationship marketing which produce customer retention equalling increased productivity (Ali-Knight Wild 2001). Ryanair considers branding virtually irrelevant as it believes that price is most important to customers. This is reflected in its not always so good image in the press. Southwest, contributes a large part of its success to its well established brand values (Gilbert et.al 2001), and EasyJet has won awards for its brand (Brand Strategy 2001). Over 90% of bookings are made directly, either on the website or through reservations centres. The website saves on à ¢Ã¢â€š ¬Ã‚ ¦staff costs, agents commission, and computer reservation charges, while significantly contributing to growth (Johnson Scholes 2002). Furthermore, direct booking gives greater control over sales of ancillary services, important revenue contributors, and eliminates need for tickets which reduces check-in times. Travel agencies are used on a small scale as necessary when opening new routes in unknown markets. Service Virtually no frills lower costs considerably, enable fast turnarounds and very low ticket prices (Gilbert et.al 2001). A very basic product is offered and Ryanair now plans to remove the last frills (Gow 16/02/04). The question is how much customers are willing to forgo before switching to competitors. Will it be possible to sustain the necessary load factor with an even narrower target market? Southwest is more successful than Ryanair but has not stripped away all frills (Porter 1996). The low service damages the brand which leads to reduced business. For example, Ryanair was taken to court for charging disabled passengers  £18 for wheelchair usage (Tait 03/12/03), and is known for transferring passengers to later or alternative flights without notice if original flight is not full enough (Johnson Scholes 2002). Support activities Procurement Purchasing power enables negotiation of favourable deals (core competence) with suppliers. However, these demand à ¢Ã¢â€š ¬Ã‚ ¦large andà ¢Ã¢â€š ¬Ã‚ ¦ growing volumes based on passenger numbers (Felsted 04/11/03) which is becoming difficult to sustain as Ryanair expanded too quickly. Although growth is slowed down new planes has been ordered aiming to double the fleet by 2009. Buys mostly during recession when prices are down Good buyer-supplier relationships ensure reliability and low-cost procurement of services (many functions are contracted out). Safety is guaranteed as contracted work is supervised and planned by Ryanair staff (Johnson Scholes 2002). Technology development Ryanair uses its website to monitor bookings to see how full planes are minute by minute. If numbers fall prices can be slashed immediately to attract buyers thus increasing the load factor. However, they dont hesitate to raise prices if demand is buoyant (Bowley 21/07/03) which leads to effective yield management. CONCLUSION The aim of this report was to carry out a strategy analysis of Ryanair, Europes largest low-cost no-frills airline. From this it became evident that the organisation operates in a complex environment with fast changing influences that affect its business both beneficially and unfavourably. It also enabled identification of some of the sources of Ryanairs competitive advantage: core competencies, unique resources, key linkages and the superior cost performance compared to its closest competitor. However, it also became clear that the organisation still has a lot to learn from best practice. In general Ryanairs strategies match its task environment although it fails to address certain crucial issues. If these are not dealt with they could lead to future problems and reductions in profits.

Matrilineal social structure of spotted hyenas

Matrilineal social structure of spotted hyenas The spotted hyena, Crocuta crocuta ¸ has evolved a matrilineal society in which the females are more dominant and aggressive than males within the clans. Female and male behaviors come together to form a complex societal structure that promotes variability and reproductive success. This species is an exceptional example of matrilineal hierarchy and social organization as opposed to the regular male-dominant societal structure present in the case of most mammals. Scientists continue to study the spotted hyena for its remarkably sophisticated social behavior, which may be comparable to that of some primates and possibly even human beings (Jenks et al., 1995; Drea et al., 2002; Engh et al., 2002; East et al., 2003). The spotted hyena, Crocuta crocuta, is a very intelligent animal that organizes itself into large clans of 50-80 members (Engh et al., 2002). While most mammals exhibit a male-dominant society where males fight for rank and the right to reproduce, the spotted hyena has developed a matrilineal society (Jenks et al., 1995). Females are more dominant and aggressive than males and pass on their rank to their offspring (Jenks et al., 1995; Engh et al., 2002). They are responsible for reproductive choice due to their dominant status (East et al., 2003). Males regularly travel to clans outside their natal society, despite the cost of access to food, for the chance of higher reproductive success (Engh et al., 2002). They also engage in specific favorable behaviors to entice females to choose to mate with them (East et al., 2003). All of these sophisticated behaviors have evolved to promote variability and overall success for the spotted hyena. Even more amazingly, the same social structure a nd behaviors of dominant-submissive interactions emerged within an isolated group of spotted hyenas raised in captivity (Jenks et al., 1995). The spotted hyena is definitely a very unique case of societal arrangement (Engh et al., 2002). With further study, the evolution of this remarkable case of sex-role reversal and complex hierarchy may soon be fully understood. It may provide further insight into similar social arrangements seen with other animals such as primates (Jenks et al., 1995). The study of spotted hyenas may even provide insight into more primitive stages of human societal structure, especially where there are matrilineal cultures. Females are without question the more dominant gender within spotted hyena clans and they exercise this dominance when it comes to reproduction (Engh et al., 2002; East et al., 2003). They are on average larger, more aggressive, and more violent than males within the clan (Engh et al., 2002). Their special anatomy an enlarged clitoris through which copulation occurs gives them full control over sexual activities and partners (East et al., 2003). There is no chance for forced copulation simply because the male hyena needs the females full cooperation for proper coitus to occur (East et al., 2003). Theories for the evolution of this physical characteristic include (a) counter-evolution in the presence of high rates of forced copulation and (b) selection for overall more dominant and aggressive individuals resulting in masculinization (Drea et al., 2002). Since more dominant and aggressive females also attain a higher rank within the clan, they tend to be more successful in raising a larger number of young. A higher rank correlates to greater access to food and thus higher chances of survival for both mother and offspring (Engh et al., 2002). Female spotted hyenas have multiple criteria for choosing mates. They prefer immigrant males to natal males, those born within the community a possible measure for prevention of inbreeding (Engh et al., 2002). Even more amazingly, females generally prefer males of similar age, preventing sexual interactions with fathers or sons (East et al., 20023). Females also show preference for more submissive, less aggressive males (East et al., 2003). This selection for less aggressive males further emphasizes the sexual dimorphism, both in behavior and physical characteristics, present in this species. Females copulate with several males when in heat, possibly to dissuade males from infanticide (East et al., 2003). This behavior further increases variability it is quite common to see single litters whose cubs can be traced to different fathers (Engh et al., 2002). It serves to confuse males and dissuade them from killing cubs that may or may not be their own a complex behavior that shows fo resight and intelligent thought (East et al., 2003). Female choice for less aggressive males and behavior to prevent infanticide may have evolved to counter the extremely high-risk pregnancies these animals go through due to their anatomy (Drea et al., 2002). In a study conducted by Engh and colleagues (2002), the reproductive skew among male hyenas was investigated. One of the major discoveries was that immigrant males had an immense advantage over natal males. Over the 10-year period that one clan of hyenas was observed, it was found that immigrant males sired 97% of the cubs, while natal males only sired 3% (Engh et al., 2002). This explains the males behavior of leaving natal clans and immigrating elsewhere: the cost of rank and access to food are highly outweighed by the reproductive benefits in a non-natal clan (Engh et al., 2002). Within the group of immigrant males, it was found that rank did not have a statistically significant effect on a males reproductive success. In fact, males a few ranks below the highest ranking immigrant had the most success in terms of cubs sired (Engh et al., 2002). In general, tenure the measure of how long an immigrant male had been in the clan was found to be a better indicator of reproductive succ ess. The immigrant males rates of producing cubs increased significantly the longer they remained in the clan, showing a strong correlation between tenure and reproductive success (Engh et al., 2002). Male spotted hyenas are also observed to exhibit behaviors to make themselves more attractive to females. As found in a recent study by East and colleagues (2003), there was no reproductive advantage to harassing, shadowing, or defending females from other competition. In fact, males exhibiting these behaviors were often attacked or chased away by females and other clan members. Instead, males found significantly more reproductive success by fostering relationships with females over longer periods of time a surprisingly complex behavior very close to that of humans (East et al., 2003). Having these friendly relationships also were seen to solidify the males places within the clan hierarchy once again, a very complex sociological behavior, especially when seen outside the order of primates (East et al., 2003). The sophisticated system of hierarchy was even recreated in captivity by a group of previously unranked hyenas collected at infancy (Jenks et al., 1995). Amazingly, these young hyenas grouped themselves in a matrilineal hierarchy, as observed over the course of two generations (Jenks et al., 1995). This structuring occurred despite the lack of maternal input for the first generation, showing that social organization is programmed into the spotted hyenas behavioral patterns (Jenks et al., 1995). While the first generation had little to no maternal interaction to help rank them within the clan, they went on to influence their own offsprings place in the clan hierarchy, just as observed in wild clans (Jenks et al., 1995). The only significant difference between the experimental clan and wild clans was the speed at which the cubs ranks stabilized within the community. Experimental group cubs solidified their place much faster than those in the wild, possibly due to smaller numbers and le ss movement within the clan (Jenks et al., 1995). The spotted hyena is a remarkable animal. It shows extremely complex behavior that leads to sophisticated social structure something that is rarely seen in mammals outside of primates (Jenks et al., 1995). In fact, the matrilineal group structure of hyena clans is very similar to that of Old World primates (Jenks et al., 1995). The sense of organization in this manner is so strong within the hyenas evolved behavioral patterns that matrilineal structure is even seen to spontaneously emerge in isolated hyenas raised in captivity (Jenks et al., 1995). Complex sexual behaviors, such as the females choice of partner based on immigrant status, tenure, and age, seem to promote the creation of this social structure (Engh et al., 2002; East et al., 2003). Carefully nurtured relationships between same- and opposite-sex individuals show the multifaceted interactions between clan members that also contribute to the development of matrilineal organization (East et al., 2003). Female dominance is even supported by biological mechanisms and the altered anatomy of this species (Drea et al., 2002). With further study, the circumstances that led to the evolution of this unique system may soon be uncovered. This will provide insight not only into the spotted hyenas sociological history, but also into that of Old World primates and possibly even that of human beings. It is an exciting prospect that will hopefully emerge within the years to come.