Financial analysis Essay Example for Free

Financial analysis EssayThe Back Yard Burgers has 183 restaurants 44 company-operated and 139 franchisees as on June 30, 2007. The sales figures indicate thoroughgoing revenue of $12,610,000 as compared to last year sales figure of $11,695,000. eating house sales accounted for $10,688,000 that is a 10. 3% add-on from last year figures of $9,686,000. Out of this 10. 3% increase of revenue, 6. 8% is attributed to the addition of two new company-operated restaurants till Jun 30, 2007 since July 1, 2006. The remaining 3. 5% increase in the revenue from restaurant sales is from the existing restaurants. bakers dozen Weeks Ended June 30, July 1, 2007 2006 Revenues Restaurant sales $ 10,688 $ 9,686 Franchise and area development fees 84 204 Royalty fees 1,265 1,245 Advertising fees 318 314 Other 255 246 Total revenues 12,610 11,695 Expenses Cost of restaurant sales 3,502 3,120 Restaurant operating expenses 5,040 4,646 General and administrative 2,259 1,634 Advertising 814 668 Depreciati on 544 543 Other operating (income)/expense Total expenses 12,159 10,611 Operating income 451 1,084 Interest income 29 16. Interest expense (193 ) (198 ) Other, elucidate dinero (28 ) (24 ) Income before income taxes 259 878 Income taxes 50 302 Net income $ 209 $ 576 Statement of income for the period July 1, 2006 to June 30, 2007 The statement of income shows a net income of $209,000 only for the actual year as compared to $576,000 in the previous year. An increase in the general and administrative expenses and increased advertising expenditure accounts for the lower net income of the company. The annual turnover of the company in the year 2006 was $44,710,000 as compared to $41,000,000 in the year 2005.The company reported a 9% annual growth in sales. Key financial data of Back Yard Burgers (In millions of USD) Income Statement quarterly (Jun 07) Annual (2006) Annual (2005) Total Revenue 12. 61 44. 71 41. 00 Gross Profit 3. 81 13. 67 12. 29 Operating Income 0. 45 2. 18 0 . 42 Net Income 0. 21 0. 88 -0. 04 Balance Sheet Total present-day(prenominal) Assets 7. 19 7. 08 5. 32 Total Assets 32. 94 33. 41 31. 64 Total Current Liabilities 5. 24 5. 79 4. 01 Total Liabilities 15. 24 16. 11 16. 34 Total Equity 17. 70 17. 30 15. 30 Cash Flow Net Income/outset Line 0. 21 0. 88 -0. 04 Cash from Operating 0. 40 4.05 3. 33 Cash from Investing -0. 16 -1. 85 -7. 83 Cash from Financing -0. 25 -0. 36 5. 78 Net Change in Cash -0. 01 1. 84 1. 28 The above table gives in insight into the companys current financial position. The operating profit in the year 2006 was $2. 2 million compared to an operating profit of $0. 4 million in the previous year. The net profit was $0. 9 million in the year 2006 as compared to a net loss of $0. 04 million in the year 2005. The company reported a net profit margin of 1. 96% in the year 2006 as compared to 1. 28% in the previous year. The operating margin of the company also increased from 3.56% to 4. 87%. The financial ratios for the c urrent period is provided in the table below Key Stats Ratios Quarterly (Jun 07) Annual (2006) Annual (TTM) Net Profit Margin 1. 66% 1. 96% 1. 28% Operating Margin 3. 58% 4. 87% 3. 56% EBITD Margin 9. 77% 8. 34% Return on Average Assets 2. 53% 2. 69% 1. 80% Return on Average Equity 4. 77% 5. 37% 3. 44% The company has seen a decreasing profit over the past a few(prenominal) years. The analysis of the various factors that account for success in the fast food industry in this paper has highlighted the reasons responsible for the decreasing profit.

Airport Security Recruitment

aerodrome Security enlisting1. nameationThe enlisting of military unit is a genuinely important t consume which in larger organizations is usu solelyy conducted by a Human Resource division or in smaller organizations by the responsible individual, either demeanor it is genuinely important to make the respectable decision in the weft growth since misinterpretations fire view as catastrophic consequences for the organization. If the enlisting and selection c are for is poorly conducted meaning that the wrong taildi interlocking has been employed can result in yen lasting damage ca applyd by the employee. The employee could vex relationships with customers and suppliers, negatively affect the production and the pure tone of helping and even influence the commitment of colleges. In the extreme grounds mistakes in the liftment and selection serve well could result in the bankruptcy of the come with. (Dale, 2003) collect to the threat of crook acts and act of te rrorism imposed on air affect, companies in the air travel occupation face m either a(prenominal) regulations which in persist to regulate the prepareiveness and contribute to the resort of air travel.Employees in this industry of go operate very sensitive and overpriced equipment therefore g every sidenments and drome operators require employees to undergo a variety back constitute fit ins to ensure, as good as possible, that the individual has no spirit to misuse his privileges of employment for whatever condemnable activity. Some countries even require downplay checks which include biometric entropy much(prenominal) as fingerprints and the scanning of facial features to ascertain(p) the employees identity. (Wells Young 2004 Kenneth 1991)Companies atomic number 18 facing difficulties associated with venomous acts and terrorism. If an employee misuses his approach shot to the promise state to commit a abomination which can cost the lives of humans the employe r could be sued for pay as comfortably negligent hire. In extension, in such a case, regimen susceptibility question the companies reliability and tho clownishness and might put the company pop divulge of business. Customers might question the reliability and the prime(a) of service provided which can easily lead to the failure of the business. not to mention ethical issues when it comes to the lives of hoi polloi.Recruiters hold back to face such issues when inquisitioning for new employees.A mistake in the conjure upment process can not only lead to the failure of the business but can also cost lives of human cosmoss.1.1 inquiry QuestionsThis Thesis ojective is toExamine which channels atomic number 18 organism used for the recruitment of staff office in the pay back state of airports?Find out if emphasise checks are creation conducted in excessiveness of the Zuverlassigkeitsuberprufung undeniable by law?And weather or not the mandatory background checks am aze an influence on the selection of the recruitment channels?2 Setting the Scene2.1 airport EnvironmentThe airports are in many ship centering unique surrounds. Airlines transport passengers and cargo from and to more than or less every part of the world. Thousands of passengers and tons of cargo posit to be eliminateled and processed as fast, effective and safe as possible. It is therefore very important to get up all ground handling procedures as effective as possible. Many Airlines meet outsourced their ground handling to however costs. This led to the fact, that many firms offer ground go such as loading, boarding, check-in or catering as well as maintenance service and provide aircrews with briefing teaching and authentication needed to conduct their flights. Airports are home to not only airlines but as a result of the outsourcing of the dissimilar services airlines need, many businesses befool developed, providing affect services that their customers request. E excessly at major airports airlines can chose from a number of companies providing ground handling services. This leads to another special characteristic of the acidify at airports, since mixed companies provide their services and products for their customers (Airlines) exerciseing in a comparatively small subject. It is well possible that a companies biggest competition is located just next threshold and both their employees share the same facilities such as dining rooms etc.2.2 Different Areas at airportAccording to Wells Young (2004) the Airport premises can be categorized into 6 domain of a functions.The public electron orbit of an airport is freely advanceible for everyone. This area usually includes parking lots, circumstanceinal lobbies, sign in areas, Passenger pick up areas and the curb frontage.The air operations area (AOA) is defined as all areas where aircraft consummation takes place including taxiways, ruleways and aircraft parking areas.The area where f eces of passengers ,baggage or cargo amid aircrafts and the Terminal building take place is referred to as the secure area. The sterile area can be accessed by deviation the passenger checkpoints. consequently this area is accessible for the public but each individual and his or hers property willing be inspected by credential military group. This area includes duty free shops, restaurants etc and boarding areas.SIDA is short for security department identification give away area and defines the area deep down which all persons must display the unavoidable identification or be accompanied by an authorized individual. Usually the SIDA includes the air operation area as well as the secure area.2.2 Threat of criminal activity and TerrorismTerrorism is defined by the US Department of Defense as the unlawful use of or be use of force or violence against individuals or property to coerce or intimidate governments or societies, very much to achieve political, religious, or ide ological objectives (Martin 2006). what is more does Criminal activity include acts of assault, stealth, and vandalism against passengers and their property, aircraft, and all airport facilities (Wells Young 2004).The first act associated with terrorism occurred in 1930 when Peruvian revolutionaries took over the control of an goat god American mail plane with the intention to drop propaganda leaflets over Lima (US Centennial of Flight Commission). In the five years amid 1968 and 1972 acts of terrorism in the form of hijacking were at its peak. During that time the U.S. Department of shiftation go intoed 364 Hijackings worldwide.In recent history terrorism has taken an even more expectant shape.On September 11th 2001 four commercial airliners were hijacked of which three were intentionally piloted into the two Towers of the World Trade rivet and the Pentagon (Security Council, 2001). The Hijackers managed to take weapons through the passenger security check points and onto the aircrafts. As a result of these horrible attacks al around 3000 deal, mostly civilizedians lost their lives. (CNN, 2006)These attacks clearly show what effect a breach in security can have.With over a thousand flights a daytime transporting approximately 45 million passengers per year, JFK Inter discipline Airport in New York is one of the busiest in the world.In June 2007 four individuals have been charged with conspiring to attack the JFK International Airport in New York. Their intention was to flop the Terminal building, the jet fuel reservoirs and a fuel pipeline. The four individuals belonged to an extremist group ground in Trinidad. One of them is a former JFK Airport employee who cleared for a cargo Handling company with access to the secure area of the airport. Different law enforcement agencies have observed these men and seven additional individuals who they believed to be compliances for a period of 18 months. Fortunately this pretend terrorist plot was at an early stage of planning their attacks and were stopped early enough. (CBS)This case is a clear fount of how lawful employment and its privileges can be misused for criminal activity and terrorist acts.The air power and extendation Security Act (ATSA) was signed resulting from the attacks on September 11, 2001 which utilise the creation of the Transportation Security politics (TSA) in the USA. Its objective was and still is together with the Federal Aviation presidentship (FAA) to increase airport and aviation security. Their work and changes in restrictions and safety recommendation have also affected Air Transportation in many other countries such as all over Europe (Wells Young 2004).As the forward examples show, terrorism is a realistic and constantly present threat which Aviation security has to deal with.2.4 Problems of airport regulatory policiesAll airport operations are subject to national, state and local laws. Since these laws can vary at heart countries and reg ions it affects the airport operations various(prenominal)ly (Wells Young 2004). In addition, many organisation have organize over the past decades that influence airport policies to a local and even international extend. The Federal Aviation Administration (FAA) was born in 1967 but has existed in a different form since 1933. Its purpose is to improve the safety and efficiency of aviation primarily in the unite States but its restrictions and recommendations influence Air travel on a worldwide basis (Federal Aviation Administration).The body of the pin Aviation Authorities represents the aviation authorities of the European States and was founded in 1970, originally named Joint Airworthiness Authorities and received its current name in 1990. Its objectives are similar to those of the FAA with an emphasise on International normalization and a tighter co-operation with the FAA as well as the ensuring of fair and equal conduct of business in the industry (Joint Aviation Authoriti es).The International urbane Aviation system (ICAO) was established 1944 with the objective to enhance the cooperation amidst member states. Its major concerns are the regulation of technical issues such as navigational rules. The ICAO currently counts 190 members (International Civil Aviation Organisation).Even though aviation including airport operations underlies the laws of each country individually the organisations mentioned above have a great influence on the day to day operations civil aviation and determine to a large degree how all aviation related processes are conducted.3 publications ReviewDefinitionsRecruitment is defined as the set of activities and processes used to legally obtain asufficient number of qualified people at the right place and time so that the people and theorganisation can select each other in their own best short and long term interests (Schuler Randall 1987).Recruitment is defined as the act upon of identifying the best-qualified candidate from within or outside of an organization for a pedigree nullity, in a most seasonable and cost effective manner(Businessdictionary.com).The process of option which is a good deal integrated in the Recruitment process is the action of choosing suitable candidates from among the potential candidates foregoingly determined(The time 100).3.1 Range of Recruitment Channels3.1.1 macrocosmWhen an organization is in need of employees it has different recruitment channels available.In common one has to differentiate between internal and external recruitment of personnel. The followers describes the mostly used recruitment channels available to most organization to fill an open post.3.2 Internal Recruitment Internal recruitment is the promotion of a job vacancy inside the organization. This channel of recruitment can take the shape of posting the job vacancy in the company or transferal of be personnel. (Dessler 2000)There is a range of advantages associated with internal recruitment. I n the case of promotion the job applicant is already cognise to the organization and the management is in most cases informed of his abilities and skills. Furthermore it is usually easier to train staff which has been working in the company before because of the familiarity to the companies environment and its day to day operations. In addition, transferring existing personnel is cheaper and less time consume than the recruitment through external sources and the transferal can increase the motivation of the employee which in damages results in an increase in the quality of performance of the respective employee. Disadvantages associated with internal recruitment could be that cod to a restrict quantity of employees the organization might be unable to find a suitable candidate for promotion. Another problem can occur if through promotion of existing personnel the sign position becomes vacant and personnel is lacking(p) at another level in the organization. (Ric firmlyson 200 6)3.3 External RecruitmentExternal Recruitment can either be formal or informal.Formal recruitment channels have the characteristic that the recruiting company and the applicant have no earlier connection. Examples for external, formal recruitment are advertisements in newspapers Journals or magazines as well as Temporary work agencies and Recruitment Agencies along with Recruitment Fairs. (Richardson 2006)Informal Recruitment on the other hand does not reach as very muchtimes potential applicants as the formal way. The employer usually has knowledge of the applicant as in the case of re-hiring former employees or in the case of a referral from a current employee.(Richardson 2006)3.3.1 Print media When recruiters favour print media to advertise a job vacancy they have the option to choose between local or national newspapers or Trade and Professional daybooks. Each of the ones mentioned above usually tend to have certain advantages and disadvantages depending on the publicise job. Ads being places in local newspapers tend to be cheaper than in the local press but on the other hand national newspapers therefore have higher circulation and cover a wider geographical area than local newspapers. Newspapers often tend to attract elderly people because of their relative unfamiliarity with the network as an alternative resource, therefore newspapers often display advertisements for senior positions (Dale, 2003 Roberts, 2000).If a company intends to attract applicants with specific skills or knowledge placing the ad in a medical specialist periodical or flock journal seems appropriate since these journals are more likely to be read by individuals with the respective professional background which helps to indicate the intended group of people (Roberts, 2000).3.3.2 account book of mouth recruitmentAccording to Dale (2003) who is supported by Cook (1988) claims that many employees get into touch with other employees and after(prenominal)(prenominal) their d ismissal from the company they remain in touch with their former colleagues due to same job interest or for other reasons, this gives employers the chance to recruit individualized from this source. If a current employee becomes aware of a job vacancy within the company, he might forward this data to former colleagues he has worked with in the past. This applies to the recruitment of personnel for all hierarchical levels within organizations. A major advantage when using this channel is that the promoted colleague (applicant) has often worked in the industry before and matches the publicise criteria pretty well and the costs of using this channel are very low for the company compared to other channels.3.3.3 InternetThe use of the internet to recruit personnel has increase tremendously when compared to the time ten years ago. The advantages seem obvious as the recruiters can reach potential applicants almost world-wide. In addition the subduedness of applications via internet i s faster than via mail and can save the company and the applicant silver. Companies who advertise job vacancies online might on the other hand get wind an excess amount of applications of people who do not match the published criteria but still submit their application because the cost of application is low (Dale, 2003).In addition companies received many applications which did not edge basic requirements and contained too many spelling mistakes or were formally unacceptable. According to a research by the IT services firm Parity has revealed that from 2001 and 2004 companies in the UK have pulled out of online advertising due to the relatively large portion of unsuitable applications while an increasing number of people is using the internet to search for job vacancies.Implementation of a certain software could overcome this problem. Companies might consider using online testing before the application is being submitted or simply use CV scanning software to filter applications that that do not meet minimum criteria posted by the advertising company (Amble 2004).3.3.4 Recruitment AgenciesUsing an mental representation to recruit personnel can have many advantages. Recruitment agencies usually have a high competency in placing advertisements for job vacancies in different media. Due to the high frequency of placing such ads these agencies attain higher discounts which are often passed on to the customer (companies in search for employees). Due to their technical expertise and experience in describing the vacant position along with the requirements for the job applicant, recruitment agencies are able to achieve a relatively high response rate from applicants and asperse the portion of unsuitable and unwanted applications.(Roberts 2000)3.3.5 Head pursuitRecruitment Agencies often specialize in Head Hunting as a channel to recruit personnel for their customers. HeadHunting can be understood as the act of approaching a current employee directly and win ove r him or her to work for another employer. This is a commonly used technique when companies are in need of special personnel with skills higher than average. (BNET)According to Maurice Ellett, director of Signum Executive Search International and male parent Jaine, director of Swann Group, Head catch is very useful when a company is in need of executive employees. This group of employees are relatively hard to find and very hard to access through the different ways of advertising a vacant position since currently employed executives often do not respond to ads lay in newspapers or trade journals and will most likely not be found on internet job search sites. (Prattley 2007)Campbell Hepburn, the acting general manager for Hudson Recruitments Wellington agency disagrees by claiming that companies need to consider every possibly way to advertise for a job vacancy even if a high profile candidate is needed. That would include newspapers, trade journals the internet etc. Hepburn addit ionally sees an ethical problem in the fact that many recruitment agencies link individuals who are currently working for their own clients. Once an individual has been successfully recruited it is easier to keep track of his performances and re- recruit him afterwards. Therefore most search consultants in that industry do not recruit personnel from previous clients for a limited period of time. Additionally the restraint of trade clauses in many employee contracts prohibit an employee to work for a competitor for a certain period of time after his previous contract has been terminated. (Prattley 2007)Head hunting can be a very useful way to recruit appropriate personnel but as stated above, can have a downside if the head hunting agency turns toward previous clients to recruit for other clients.3.3.6 Recruitment FairsRecruitment Fairs are organized events intending to bring employers and job seekers together.These fairs often take place to freshly graduated college students to make sign striking with a company they are aiming to work for. Furthermore companies have a chance to present themselves in terms of their products, environment or future day outlooks of the industry etc.Often these events are designed for companies of a certain industry to better match the demands for applicants and employers.Disadvantages could be the relatively expensive and time consuming set up as well as the fact that the applicant does not experience the real environment that the company is working in.But all in all Recruitment fairs offer a great opportunity for both sides, recruiters and job seekers, to arrange upgrade meetings and interviews.3.3.7 Temporary work agenciesMaking use of temporary work agencies is a way outsourcing the recruitment. The workforce usually has a contractual relationship with the agency and if a client is in need of employees the agency provides them for it. (Mehta Theodore 2003) This form of accessing workforce has grown to a huge industry in re cent history as in the USA from 1993 to 2000 the demand for temporary workers has increased by over 90 %. (Brogan 2001)Van der Heijden (1995 cited in Koene et al.(2004)) claims and is supported by Timmerhuis and De Lange (1998 cited in Koene et al (2004)) that the main reasons for companies to acquire temporary workforce are due to seasonal fluctuations, unexpected peaks, economic cycles or simply if a temporary replacement is needed for a standing(prenominal) employee.According to Segall and Sullivan (1997) temporary workers in generate have to suffer from certain disadvantages compared to a permanent employment. Temporary workers usually have less labor market place security than permanent workers and are more prone to possible unemployment and even the wage is in average 20 % below those of permanent employees.The results is supported by an analysis conducted by the OECD in 2002 on 28 states that temporary work is most likely found in positions of rather unskilled labour as we ll as administrative staff and medical labour exercising rather lower skilled tasks. (OECD, 2002 cited in Koene et al (2004))3.4 Pre employment screening3.4.1 IntroductionRobert Woodman, president and founder of Berkeley International intelligence activity Inc., a business investigation company highly recommends to conduct intensive screening of applicants before they are being employed. Referring to an example in which a Toronto based non profit organization which operated retirement and nursing homes employed a new director to raise funds for a new project. The director shortly after employment submitted false pledge certificates with forged signatures and additionally turned in numerous bills for her expenses including expensive Hotel-, restaurant- and even limousine service bills. As company investigators charge her of fraud she disappeared shortly after but was arrested and convicted for several counts of fraud and received a four-year prison sentence. Since most of the mone y she gained was already spend, she will not be able to pay back the full amount.Further investigation into the directors past revealed that she was not properly screened before being employed. A background check would have revealed that she has committed similar crimes and caused damage to three previous employers. (Woodman 2006)Benoff (1989) and Brennan (1997) give more example of employees without background checks, committing crimes at work where at the end the employer was being sued and found guilty of negligent hiring.Personnel is a very important asset in every company. The recruitment process is time consuming and can be very expensive. But companies can not risk to make poor decisions in this process since employing the wrong personnel can make the difference between success and failure of a business since companies can be held responsible for their employees. (Lam Kleiner 2001)Background checks can be expensive but the cost associated with bad performances, theft of asse ts or confidential training as well as the costs associated with possible law suits is much higher. (Norred 1993)Companies basically have two options to collect the data needed. Either they investigate an applicant by implementing their own employment security department (internal) or companies can contact professional employee screening companies to collect the date for them (externally).3.4.2 Employer ReferencesTo inquire nurture about a job applicant from a previous employer is a useful way of verifying the authenticity of knowledge provided by the applicant. The problem associated with this method is that there might be a number of employers who do not give any information at all, often because of the vexation of being sued for invasion of privacy by the former employee and if they do, the information might be very basic. But in general it is recommended since the new employer can demand about most ones employment dates, job titles and responsibilities of the tasks perfor med by the former employee as well as get information about working habits which are often very valuable. (Lam Kleiner 2001)3.4.3 Academic ReferencesTo check academic references is fairly easy, the employer can ask the applicant provide test copy or just request information from the substructure the applicant has stated. (Doty-Navarro Kleiner) This seems to be highly recommended especially if a company is recruiting to fill a vacancy which required certain skills and knowledge such as a special education since people tend to make more false statements about their academic references than over previous employment references. Therefore companies should be aware of the authenticity of an applicants academic background. (Kaiser-Lee 1995)3.4.4 Credit RecordsIf an employee is in contact with company money or other valuable goods it is recommended to run a assent history check which comes in the form of a credit report and can obtained through credit agencies. Credit Reports contain i nformation about bankruptcies, legal judgments, tax liens, credit card balances as well as child support obligations. Credit reports can give a rough idea about the financial spotlight of an individual and can help to evaluate the risk of the employee committing theft (Doty-Navarro Kleiner 2000).3.4.5 Driving RecordIf the employee operates a company vehicle, a driving record should be obtained in advance. The employer is obliged to verify that the person operating the vehicle is legally certified by asking to present the device driver license. If the employer fails to comply, the company will be probable for all the damage the employee has caused with the company vehicle.Driving records can be requested through governmental bureaus and contain data such as traffic violations as well as other driving related offences such as if the driving privileges were suspended. (Steingold 1994)3.4.6 Criminal RecordsAccording to (Doty-Navarro Kleiner 2000) the need for running a criminal reco rd check is very important if the future employee will deal with sensitive and valuable assets for example driving a company car or having access to cash registers. They also emphasize on the urgency to perform a criminal record check to subjugate law suits for negligent hire by customers in case the employee gets involved in criminal activity during his employment.But there are certain difficulties associated with the ejectness of these records.Odom (1995) points out certain limitations such as the limited accessibility of criminal record databases. He also claims that different courts, depending on their geographic and legal jurisdiction do not report to the same databases and some courts do not have to report to a database at all. The conclusion is that criminal databases are everything but complete and investigators, internal or external, sometimes have to go through intensive investigation to get an authentic result.3.4.7 External employee screeningCompanies performing backgr ound checks component other companies from different industries have soared in the US in recent past. According to Terhune (2008) the biggest US companies in the business are Choicepoint (Alpharette, GA) serving Wal Mart and UPS among others, USIS (Falls Church, VA) serving Federal agencies along with Transportation companies, early Advantage (Powey, GA) , providing services to companies in the manufacturing and financial sectors. These companies business is to screen people in every legal way possible. (Terhune 2008) The services they provide include the checking of criminal records, driving records, credit histories (including bankruptcy filings, tax liens, legal judgments and lawsuits), as well as investigative consumer reports which contains information self-collected through interviews with friends, neighbors, former co-worker and in some cases even family members with the aim to reveal data about some ones personality. (McGreevy 2007)Since the major employee screening comp anies conduct their background checks specialising on only few industries, providing their information to even bigger companies on a regular basis, they even maintain their own or shared databases containing information about individuals who have worked in the respective industry before. These databases include statements of previous employers about individuals such as the reason of dismissal and even accusations of criminal acts without legal proof from a court. (Terhune 2008) This practically core that individuals seeking jobs can be accused of having conducted a criminal act in the past even though they have not been convicted for a crime by a court of law.Terhune (2008) emphasises this matter with an example of Truck driver who was employed by Marten Transport based in Mondovi, Wisconsin. He was disregard from the company after only two weeks as a result of his numerous complaints about the safety of the hand truck he was driving. He sued Marten Transport and was awarded with over 31.000 US Dollars in back pay. In addition, the judge ordered Marten Transport to remove any unfavourable work record information from a database named DAC which is maintained by USIS. As he shortly after his dismissal from Marten Transport re-applied for a job at J.B. Hunt Services, his application was denied due to his DAC record stating that he was dismissed due to excessive complaints. (Terhune 2008) furthermore refers to a comment to this example by Kristen Turley, the director of market development and communications at USIS who claims that their system (as used in regards to the DAC database) contains mistakes and in the case of false information being submitted USIS would require proof from the previous employer to undermine his accusations. USIS does not ask for proof up front since their belief is that this would hold past employers from submitting information in the first place.3.4.8 Background checks required by lawTo access the secure area of an airport all individ uals whom is granted access on a regular basis (excluding passengers) need to be issued an SIDA mark. Before the SIDA badge is issued the German law requires background checks. According to .7 of the German Aviation Security Act (Luftsicherheitsgesetz) the German Department of Aviation Security (Luftsicherheitsbehorde), whos purpose is to serve the safety and security of Air Transportation, has to conduct a Background check on authorized staff, the so called ZuAirport Security RecruitmentAirport Security Recruitment1. IntroductionThe Recruitment of personnel is a very important task which in larger organizations is usually conducted by a Human Resource department or in smaller organizations by the responsible individual, either way it is very important to make the right decision in the selection process since mistakes can have catastrophic consequences for the organization. If the recruitment and selection process is poorly conducted meaning that the wrong candidate has been employ ed can result in long lasting damage caused by the employee. The employee could spoil relationships with customers and suppliers, negatively affect the production and the quality of service and even influence the commitment of colleges. In the extreme case mistakes in the recruitment and selection process could result in the bankruptcy of the company. (Dale, 2003)Due to the threat of criminal acts and terrorism imposed on air travel, companies in the aviation industry face many regulations which intend to regulate the effectiveness and contribute to the safety of air travel.Employees in this industry often operate very sensitive and expensive equipment therefore governments and Airport operators require employees to undergo a variety background checks to ensure, as good as possible, that the individual has no intention to misuse his privileges of employment for any criminal activity. Some countries even require background checks which include biometric data such as fingerprints and the scanning of facial features to verify the employees identity. (Wells Young 2004 Kenneth 1991)Companies are facing difficulties associated with criminal acts and terrorism. If an employee misuses his access to the secure area to commit a crime which can cost the lives of humans the employer could be sued for compensation as well negligent hire. In addition, in such a case, authorities might question the companies reliability and thoroughness and might put the company out of business. Customers might question the reliability and the quality of service provided which can easily lead to the failure of the business. not to mention ethical issues when it comes to the lives of people.Recruiters have to face such issues when searching for new employees.A mistake in the recruitment process can not only lead to the failure of the business but can also cost lives of human beings.1.1 Research QuestionsThis Thesis ojective is toExamine which channels are being used for the recruitment of per sonnel in the secure area of airports?Find out if background checks are being conducted in excess of the Zuverlassigkeitsuberprufung required by law?And weather or not the mandatory background checks have an influence on the selection of the recruitment channels?2 Setting the Scene2.1 Airport EnvironmentThe airports are in many ways unique environments. Airlines transport passengers and cargo from and to nearly every part of the world. Thousands of passengers and tons of cargo need to be handled and processed as fast, effective and safe as possible. It is therefore very important to coordinate all ground handling procedures as effective as possible. Many Airlines have outsourced their ground handling to save costs. This led to the fact, that many firms offer ground services such as loading, boarding, check-in or catering as well as maintenance service and provide aircrews with briefing information and documentation needed to conduct their flights. Airports are home to not only airli nes but as a result of the outsourcing of the various services airlines need, many businesses have developed, providing equal services that their customers request. Especially at major airports airlines can chose from a number of companies providing ground handling services. This leads to another special characteristic of the work at airports, since various companies provide their services and products for their customers (Airlines) working in a relatively small area. It is well possible that a companies biggest competitor is located just next door and both their employees share the same facilities such as dining rooms etc.2.2 Different Areas at airportAccording to Wells Young (2004) the Airport premises can be categorized into 6 areas.The public area of an airport is freely accessible for everyone. This area usually includes parking lots, terminal lobbies, Check-in areas, Passenger pick up areas and the curb frontage.The air operations area (AOA) is defined as all areas where airc raft movement takes place including taxiways, runways and aircraft parking areas.The area where movement of passengers ,baggage or cargo between aircrafts and the Terminal building take place is referred to as the secure area. The sterile area can be accessed by passing the passenger checkpoints. Therefore this area is accessible for the public but each individual and his or hers property will be inspected by security personnel. This area includes duty free shops, restaurants etc and boarding areas.SIDA is short for security identification display area and defines the area within which all persons must display the required identification or be accompanied by an authorized individual. Usually the SIDA includes the air operation area as well as the secure area.2.2 Threat of criminal activity and TerrorismTerrorism is defined by the US Department of Defense as the unlawful use of or threatened use of force or violence against individuals or property to coerce or intimidate government s or societies, often to achieve political, religious, or ideological objectives (Martin 2006). Furthermore does Criminal activity include acts of assault, theft, and vandalism against passengers and their property, aircraft, and all airport facilities (Wells Young 2004).The first act associated with terrorism occurred in 1930 when Peruvian revolutionaries took over the control of an Pan American mail plane with the intention to drop propaganda leaflets over Lima (US Centennial of Flight Commission). In the five years between 1968 and 1972 acts of terrorism in the form of hijacking were at its peak. During that time the U.S. Department of Transportation recorded 364 Hijackings worldwide.In recent history terrorism has taken an even more threatening shape.On September 11th 2001 four commercial airliners were hijacked of which three were intentionally piloted into the two Towers of the World Trade Centre and the Pentagon (Security Council, 2001). The Hijackers managed to take weapons through the passenger security check points and onto the aircrafts. As a result of these horrible attacks almost 3000 people, mostly civilians lost their lives. (CNN, 2006)These attacks clearly show what effect a breach in security can have.With over a thousand flights a day transporting approximately 45 million passengers per year, JFK International Airport in New York is one of the busiest in the world.In June 2007 four individuals have been charged with conspiring to attack the JFK International Airport in New York. Their intention was to bomb the Terminal building, the jet fuel reservoirs and a fuel pipeline. The four individuals belonged to an extremist group based in Trinidad. One of them is a former JFK Airport employee who worked for a cargo Handling company with access to the secure area of the airport. Different law enforcement agencies have observed these men and seven additional individuals who they believed to be compliances for a period of 18 months. Fortunately this suspected terrorist plot was at an early stage of planning their attacks and were stopped early enough. (CBS)This case is a clear example of how legal employment and its privileges can be misused for criminal activity and terrorist acts.The Aviation and Transportation Security Act (ATSA) was signed resulting from the attacks on September 11, 2001 which implemented the creation of the Transportation Security Administration (TSA) in the USA. Its objective was and still is together with the Federal Aviation Administration (FAA) to increase airport and aviation security. Their work and changes in restrictions and safety recommendation have also affected Air Transportation in many other countries such as all over Europe (Wells Young 2004).As the previous examples show, terrorism is a realistic and constantly present threat which Aviation security has to deal with.2.4 Problems of airport regulatory policiesAll airport operations are subject to national, state and local laws. Since these laws can vary within countries and regions it affects the airport operations respectively (Wells Young 2004). In addition, many organisation have formed over the past decades that influence airport policies to a local and even international extend. The Federal Aviation Administration (FAA) was born in 1967 but has existed in a different form since 1933. Its purpose is to improve the safety and efficiency of aviation primarily in the United States but its restrictions and recommendations influence Air travel on a worldwide basis (Federal Aviation Administration).The body of the Joint Aviation Authorities represents the aviation authorities of the European States and was founded in 1970, originally named Joint Airworthiness Authorities and received its current name in 1990. Its objectives are similar to those of the FAA with an emphasise on International Standardisation and a tighter co-operation with the FAA as well as the ensuring of fair and equal conduct of business in the indust ry (Joint Aviation Authorities).The International Civil Aviation Organisation (ICAO) was established 1944 with the objective to enhance the cooperation between member states. Its major concerns are the regulation of technical issues such as navigational rules. The ICAO currently counts 190 members (International Civil Aviation Organisation).Even though aviation including airport operations underlies the laws of each country individually the organisations mentioned above have a great influence on the day to day operations civil aviation and determine to a large degree how all aviation related processes are conducted.3 Literature ReviewDefinitionsRecruitment is defined as the set of activities and processes used to legally obtain asufficient number of qualified people at the right place and time so that the people and theorganisation can select each other in their own best short and long term interests (Schuler Randall 1987).Recruitment is defined as the Process of identifying the bes t-qualified candidate from within or outside of an organization for a job vacancy, in a most timely and cost effective manner(Businessdictionary.com).The process of Selection which is often integrated in the Recruitment process is the action of choosing suitable candidates from among the potential candidates previously determined(The Times 100).3.1 Range of Recruitment Channels3.1.1 IntroductionWhen an organization is in need of employees it has different recruitment channels available.In general one has to differentiate between internal and external recruitment of personnel. The following describes the mostly used recruitment channels available to most organization to fill an open post.3.2 Internal Recruitment Internal recruitment is the promotion of a job vacancy inside the organization. This channel of recruitment can take the shape of posting the job vacancy in the company or transferal of existing personnel. (Dessler 2000)There is a range of advantages associated with internal recruitment. In the case of promotion the job applicant is already known to the organization and the management is in most cases aware of his abilities and skills. Furthermore it is usually easier to train staff which has been working in the company before because of the familiarity to the companies environment and its day to day operations. In addition, transferring existing personnel is cheaper and less time consuming than the recruitment through external sources and the transferal can increase the motivation of the employee which in return results in an increase in the quality of performance of the respective employee. Disadvantages associated with internal recruitment could be that due to a limited quantity of employees the organization might be unable to find a suitable candidate for promotion. Another problem can occur if through promotion of existing personnel the initial position becomes vacant and personnel is missing at another level in the organization. (Richardson 2006)3 .3 External RecruitmentExternal Recruitment can either be formal or informal.Formal recruitment channels have the characteristic that the recruiting company and the applicant have no previous connection. Examples for external, formal recruitment are advertisements in newspapers Journals or magazines as well as Temporary work agencies and Recruitment Agencies along with Recruitment Fairs. (Richardson 2006)Informal Recruitment on the other hand does not reach as much potential applicants as the formal way. The employer usually has knowledge of the applicant as in the case of re-hiring former employees or in the case of a referral from a current employee.(Richardson 2006)3.3.1 Print media When recruiters choose print media to advertise a job vacancy they have the option to choose between local or national newspapers or Trade and Professional journals. Each of the ones mentioned above usually tend to have certain advantages and disadvantages depending on the advertised job. Ads being pl aces in local newspapers tend to be cheaper than in the local press but on the other hand national newspapers therefore have higher circulation and cover a wider geographical area than local newspapers. Newspapers often tend to attract elderly people because of their relative unfamiliarity with the internet as an alternative resource, therefore newspapers often display advertisements for senior positions (Dale, 2003 Roberts, 2000).If a company intends to attract applicants with specific skills or knowledge placing the ad in a specialist periodical or trade journal seems appropriate since these journals are more likely to be read by individuals with the respective professional background which helps to target the intended group of people (Roberts, 2000).3.3.2 Word of mouth recruitmentAccording to Dale (2003) who is supported by Cook (1988) claims that many employees get into touch with other employees and after their dismissal from the company they remain in touch with their former c olleagues due to same job interest or for other reasons, this gives employers the chance to recruit personal from this source. If a current employee becomes aware of a job vacancy within the company, he might forward this information to former colleagues he has worked with in the past. This applies to the recruitment of personnel for all hierarchical levels within organizations. A major advantage when using this channel is that the promoted colleague (applicant) has often worked in the industry before and matches the advertised criteria pretty well and the costs of using this channel are very low for the company compared to other channels.3.3.3 InternetThe use of the internet to recruit personnel has increased tremendously when compared to the time ten years ago. The advantages seem obvious as the recruiters can reach potential applicants almost world-wide. In addition the submission of applications via internet is faster than via mail and can save the company and the applicant mone y. Companies who advertise job vacancies online might on the other hand experience an excess amount of applications of people who do not match the published criteria but still submit their application because the cost of application is low (Dale, 2003).In addition companies received many applications which did not meet basic requirements and contained too many spelling mistakes or were formally unacceptable. According to a research by the IT services firm Parity has revealed that from 2001 and 2004 companies in the UK have pulled out of online advertising due to the relatively large portion of unsuitable applications while an increasing number of people is using the internet to search for job vacancies.Implementation of a certain software could overcome this problem. Companies might consider using online testing before the application is being submitted or simply use CV scanning software to filter applications that that do not meet minimum criteria posted by the advertising company (Amble 2004).3.3.4 Recruitment AgenciesUsing an agency to recruit personnel can have many advantages. Recruitment agencies usually have a high competency in placing advertisements for job vacancies in different media. Due to the high frequency of placing such ads these agencies acquire higher discounts which are often passed on to the customer (companies in search for employees). Due to their technical expertise and experience in describing the vacant position along with the requirements for the job applicant, recruitment agencies are able to achieve a relatively high response rate from applicants and minimize the portion of unsuitable and unwanted applications.(Roberts 2000)3.3.5 Head HuntingRecruitment Agencies often specialize in Head Hunting as a channel to recruit personnel for their customers. HeadHunting can be understood as the act of approaching a current employee directly and convincing him or her to work for another employer. This is a commonly used technique when compani es are in need of special personnel with skills higher than average. (BNET)According to Maurice Ellett, director of Signum Executive Search International and Don Jaine, director of Swann Group, Headhunting is very useful when a company is in need of executive employees. This group of employees are relatively hard to find and very hard to access through the different ways of advertising a vacant position since currently employed executives often do not respond to ads placed in newspapers or trade journals and will most likely not be found on internet job search sites. (Prattley 2007)Campbell Hepburn, the acting general manager for Hudson Recruitments Wellington agency disagrees by claiming that companies need to consider every possibly way to advertise for a job vacancy even if a high profile candidate is needed. That would include newspapers, trade journals the internet etc. Hepburn additionally sees an ethical problem in the fact that many recruitment agencies contact individuals w ho are currently working for their own clients. Once an individual has been successfully recruited it is easier to keep track of his performances and re- recruit him afterwards. Therefore most search consultants in that industry do not recruit personnel from previous clients for a limited period of time. Additionally the restraint of trade clauses in many employee contracts prohibit an employee to work for a competitor for a certain period of time after his previous contract has been terminated. (Prattley 2007)Head hunting can be a very useful way to recruit appropriate personnel but as stated above, can have a downside if the head hunting agency turns toward previous clients to recruit for other clients.3.3.6 Recruitment FairsRecruitment Fairs are organized events intending to bring employers and job seekers together.These fairs often take place to freshly graduated college students to make initial contact with a company they are aiming to work for. Furthermore companies have a cha nce to present themselves in terms of their products, environment or future outlooks of the industry etc.Often these events are designed for companies of a certain industry to better match the demands for applicants and employers.Disadvantages could be the relatively expensive and time consuming set up as well as the fact that the applicant does not experience the real environment that the company is working in.But all in all Recruitment fairs offer a great opportunity for both sides, recruiters and job seekers, to arrange further meetings and interviews.3.3.7 Temporary work agenciesMaking use of temporary work agencies is a way outsourcing the recruitment. The workforce usually has a contractual relationship with the agency and if a client is in need of employees the agency provides them for it. (Mehta Theodore 2003) This form of accessing workforce has grown to a huge industry in recent history as in the USA from 1993 to 2000 the demand for temporary workers has increased by over 90 %. (Brogan 2001)Van der Heijden (1995 cited in Koene et al.(2004)) claims and is supported by Timmerhuis and De Lange (1998 cited in Koene et al (2004)) that the main reasons for companies to acquire temporary workforce are due to seasonal fluctuations, unexpected peaks, economic cycles or simply if a temporary replacement is needed for a permanent employee.According to Segall and Sullivan (1997) temporary workers in return have to suffer from certain disadvantages compared to a permanent employment. Temporary workers usually have less labor market security than permanent workers and are more prone to possible unemployment and even the wage is in average 20 % below those of permanent employees.The results is supported by an analysis conducted by the OECD in 2002 on 28 states that temporary work is most likely found in positions of rather unskilled labour as well as administrative staff and medical labour exercising rather lower skilled tasks. (OECD, 2002 cited in Koene et al (20 04))3.4 Pre employment screening3.4.1 IntroductionRobert Woodman, president and founder of Berkeley International Intelligence Inc., a business investigation company highly recommends to conduct intensive screening of applicants before they are being employed. Referring to an example in which a Toronto based non profit organization which operated retirement and nursing homes employed a new director to raise funds for a new project. The director shortly after employment submitted false pledge certificates with forged signatures and additionally turned in numerous bills for her expenses including expensive Hotel-, restaurant- and even limousine service bills. As company investigators accused her of fraud she disappeared shortly after but was arrested and convicted for several counts of fraud and received a four-year prison sentence. Since most of the money she gained was already spend, she will not be able to pay back the full amount.Further investigation into the directors past revea led that she was not properly screened before being employed. A background check would have revealed that she has committed similar crimes and caused damage to three previous employers. (Woodman 2006)Benoff (1989) and Brennan (1997) give more example of employees without background checks, committing crimes at work where at the end the employer was being sued and found guilty of negligent hiring.Personnel is a very important asset in every company. The recruitment process is time consuming and can be very expensive. But companies can not risk to make poor decisions in this process since employing the wrong personnel can make the difference between success and failure of a business since companies can be held responsible for their employees. (Lam Kleiner 2001)Background checks can be expensive but the cost associated with bad performances, theft of assets or confidential information as well as the costs associated with possible law suits is much higher. (Norred 1993)Companies basica lly have two options to collect the data needed. Either they investigate an applicant by implementing their own employment security department (internal) or companies can contact professional employee screening companies to collect the date for them (externally).3.4.2 Employer ReferencesTo inquire information about a job applicant from a previous employer is a useful way of verifying the authenticity of information provided by the applicant. The problem associated with this method is that there might be a number of employers who do not give any information at all, often because of the fear of being sued for invasion of privacy by the former employee and if they do, the information might be very basic. But in general it is recommended since the new employer can learn about some ones employment dates, job titles and responsibilities of the tasks performed by the former employee as well as get information about working habits which are often very valuable. (Lam Kleiner 2001)3.4.3 Acad emic ReferencesTo check academic references is fairly easy, the employer can ask the applicant provide proof or just request information from the institution the applicant has stated. (Doty-Navarro Kleiner) This seems to be highly recommended especially if a company is recruiting to fill a vacancy which required certain skills and knowledge such as a special education since people tend to make more false statements about their academic references than over previous employment references. Therefore companies should be aware of the authenticity of an applicants academic background. (Kaiser-Lee 1995)3.4.4 Credit RecordsIf an employee is in contact with company money or other valuable goods it is recommended to run a credit history check which comes in the form of a credit report and can obtained through credit agencies. Credit Reports contain information about bankruptcies, legal judgments, tax liens, credit card balances as well as child support obligations. Credit reports can give a rough idea about the financial situation of an individual and can help to evaluate the risk of the employee committing theft (Doty-Navarro Kleiner 2000).3.4.5 Driving RecordIf the employee operates a company vehicle, a driving record should be obtained in advance. The employer is obliged to verify that the person operating the vehicle is legally certified by asking to present the driver license. If the employer fails to comply, the company will be liable for all the damage the employee has caused with the company vehicle.Driving records can be requested through governmental bureaus and contain data such as traffic violations as well as other driving related offences such as if the driving privileges were suspended. (Steingold 1994)3.4.6 Criminal RecordsAccording to (Doty-Navarro Kleiner 2000) the need for running a criminal record check is very important if the future employee will deal with sensitive and valuable assets for example driving a company car or having access to cash registers. They also emphasize on the urgency to perform a criminal record check to avoid law suits for negligent hire by customers in case the employee gets involved in criminal activity during his employment.But there are certain difficulties associated with the completeness of these records.Odom (1995) points out certain limitations such as the limited accessibility of criminal record databases. He also claims that different courts, depending on their geographic and legal jurisdiction do not report to the same databases and some courts do not have to report to a database at all. The conclusion is that criminal databases are everything but complete and investigators, internal or external, sometimes have to go through intensive investigation to get an authentic result.3.4.7 External employee screeningCompanies performing background checks serving other companies from different industries have soared in the US in recent past. According to Terhune (2008) the biggest US companies in t he business are Choicepoint (Alpharette, GA) serving Wal Mart and UPS among others, USIS (Falls Church, VA) serving Federal agencies along with Transportation companies, First Advantage (Powey, GA) , providing services to companies in the manufacturing and financial sectors. These companies business is to screen people in every legal way possible. (Terhune 2008) The services they provide include the checking of criminal records, driving records, credit histories (including bankruptcy filings, tax liens, legal judgments and lawsuits), as well as investigative consumer reports which contains information gathered through interviews with friends, neighbors, former co-worker and in some cases even family members with the aim to reveal data about some ones personality. (McGreevy 2007)Since the major employee screening companies conduct their background checks specialising on only few industries, providing their information to even bigger companies on a regular basis, they even maintain th eir own or shared databases containing information about individuals who have worked in the respective industry before. These databases include statements of previous employers about individuals such as the reason of dismissal and even accusations of criminal acts without legal proof from a court. (Terhune 2008) This practically means that individuals seeking jobs can be accused of having conducted a criminal act in the past even though they have not been convicted for a crime by a court of law.Terhune (2008) emphasises this matter with an example of Truck driver who was employed by Marten Transport based in Mondovi, Wisconsin. He was dismissed from the company after only two weeks as a result of his numerous complaints about the safety of the truck he was driving. He sued Marten Transport and was awarded with over 31.000 US Dollars in back pay. In addition, the judge ordered Marten Transport to remove any unfavourable work record information from a database named DAC which is maint ained by USIS. As he shortly after his dismissal from Marten Transport re-applied for a job at J.B. Hunt Services, his application was denied due to his DAC record stating that he was dismissed due to excessive complaints. (Terhune 2008) furthermore refers to a comment to this example by Kristen Turley, the director of market development and communications at USIS who claims that their system (as used in regards to the DAC database) contains mistakes and in the case of false information being submitted USIS would require proof from the previous employer to undermine his accusations. USIS does not ask for proof up front since their belief is that this would hold past employers from submitting information in the first place.3.4.8 Background checks required by lawTo access the secure area of an airport all individuals whom is granted access on a regular basis (excluding passengers) need to be issued an SIDA badge. Before the SIDA badge is issued the German law requires background check s. According to .7 of the German Aviation Security Act (Luftsicherheitsgesetz) the German Department of Aviation Security (Luftsicherheitsbehorde), whos purpose is to serve the safety and security of Air Transportation, has to conduct a Background check on authorized staff, the so called Zu

A Plan To Sell Products

A architectural plan To Sell ProductsMerchandising, advertising, promotion, a plan to sell returns, sales to the meet necessitate of customers, media planning argon all well to be known as marketing. While these activities may be regarded as part of marketing, none of them is marketing itself.It is remarkcapable that in that location atomic number 18 two conditions that must be met before marketing is possible. Firstly, there must be a person or comp whatever that desires to sell a product or a service. Secondly, there is a need for potential buyers of the product or service. No matter which comes maiden, simply both must exist. If both factors exist, marketing is the process or series of activities that the prospective purchaser of the product or service with the product or service. If there is a no chore in selling your product or service for profit, the marketing has been a success. If the problem is not to make profits, the marketing has failed. It is main(prenominal) t o recognize, then that marketing is the sum of all activities related to bringing buyer and seller profitably together.1.2 Introduction to MauritiusMauritius was first explored by the Portuguese in the sixteenth century and subsequently settled by the Dutch who named it in honor of Prince Maurits van NASSAU in the 17th century.Unin costumeed until the 17th century, the island was ruled first by the Dutch and then the French after the Dutch had abandoned it. The British took control during the Napoleonic Wars and Mauritius became independent from the UK in 1968. Mauritius is a parliamentary republic and is member of the Southern Afri female genitals Development Community, the Common Market for Eastern and Southern Africa the African Union and the Commonwealth of Nations.The main languages spoken in Mauritius argon Mauritian Creole, French and English. English is the except(prenominal) official language just the lingua franca is Creole and the recentspapers and television pro grams be usually in French. Ethnically, the majority of the race is Indian and there atomic number 18 also many an(prenominal) people of African descent on the island and there are also European and Chinese minorities. It is the only African nation where the largest religion is Hinduism although Christianity and Islam also have significant populations. The dodo has been extinct since the mid-to-late 17th century1.3 Introduction to MaradivaMaradiva Villas Resort Spa, Mauritius, (member of Leading Small Hotels of the World) is an undivided haven of prodigality spread e veryplace 27 scenic acres with 750 m of pristine b each(prenominal). It overlooks the serene, blue waters of Tamarin Bay at Wolmar. The 65 Suite Villas (from 163 to 345 m) draw inspiration from the charming local architecture, each with a private pool adjoining a tranquil living-dining area, with the benefit of undecomposed butler service to ensure that every guest need is met. The villas are wonderfully spaci ous and include a large daylight bathroom with an indoor(prenominal) and an outdoor shower, a walk-in wardrobe, flat-screen television, DVD, music system, internet connectivity, espresso machine, personal bar and in-room safe. The blossoming park of Maradiva enhances already an appealing feature of the resort into a voluptuous tropical garden with sculptured landscaping.The resort offers to its guests a choice between 65 picturesque villas with a private pool of their own. The following is a add-in depicting the un manage categories of rooms that the resort has to offer with their numbersTYPE OF VILLASNUMBER OF VILLASLuxury Villas46Luxury Beachfront Villas11Luxury Suites Villas6presidential Villas2Chapter 2Micro Environment and Macro Environment2.1 Micro EnvironmentThe micro environment includes internal factors close to the company that have a direct impact on the organizations strategy. These factors include2.1.1 ConsumersThe maximum numbers of consumers staying in the hotel a re from France, then Europe, USA, Middle East, India and other countries. All the cliental from these places are of niche class. on that point are diametrical types of clientele like merged, Leisure, Business domestic clientele. Maradiva basically caters types of clientele they areCorporate clients since the hotel is well connected it has a huge corporate clientLeisure Clients since Maradiva is marketed as a leisure property it caters to many clients from around the global.Domestic clients since the hotel is seasonal it offers a special rate of 14,000 MAU throughout the yr for Mauritian guests. In this appearance it caters to the niche segment of the domestic clients(Source From the hotel monthly Occupancy report)2.1.2 SuppliersIt is directly linked to the companys overall customer value delivery system. The suppliers pass on resources to Maradiva to produce these serve. If it faces any problems from suppliers it will directly affect the marketing strategies of the hotel.The local travels agents that Maradiva deals with are-MauritoursThe White Sand ToursSummer TimesElite VoyageConnections verbalism holidays2.1.3 CompetitorsMaradiva provides different strategies packages to generate customer value satisfaction. These strategies assist them to compete with their competitors. The hotel by using these strategies must gain strategic advantage by positing their offerings strongly against competitors offerings. animateROOMSMaradiva Villas and spa, Mauritius65Four seasons, Mauritius145Sugar Beach resorts, Mauritius258Shanti Ananda Maurice61Sofitel imperial resort spa191Total7202.1.4 MediaThe modes of advertisements that are used there are printed media and the hoardings. In the printed media local newspapers were used and the local newspapers were Le Mauricien and lexpress.2.2 Macro Environment2.2.1Political2.2.2 EconomicalGDP (2009 est., official exchange rate)$9.156 billionReal harvest-tide rate (2009 est.)2.1%Per capita income (2009 est., purchasing pow er parity)$12,400Avg. inflation rate (2009 est.)3.4%Agriculture(4.5% of GDP) Productssugar, sugar derivatives, tea, tobacco, vegetables, fruits, flowers, cattle and fishing.Manufacturing, including export bear upon zone(19.4% of GDP) Typeslabor-intensive goods for export, including textiles and clothing, watches and clocks, jewelry, optical goods, toys and games, and cut flowers.Financial operate(10.9% of GDP)Tourism sector(8.7% of GDP) Main countries of originFrance, including nearby French island Reunion, South Africa, and west European countries.(Source http//www.state.gov/r/pa/ei/bgn/2833.htm)2.2.3 SocialThe forebears of the various ethnic groups composing Mauritian society arrived as settlers, slaves, indentured laborers, and immigrants. Ethnicity, religion, and language have been important factors in shaping the way Mauritians relate to each other in the social spheres.The Mauritian Constitution makes no mention of an official language and its one million citizens speak Maur itian Creole, a French-based Creole, English or French. It is only in the fantan that the official language is English but any member of the National Assembly can still address the chair in French.PopulationIsland of Mauritius only 1,288.2 (In Thousands 2009)Population growth rate0.7%Birth rate16.66 births/1,000 population (2000 est.)Death rate6.83 deaths/1,000 population (2000 est.)Sex ratioTotal population 98 staminate(s)/ coulomb femaleInfant mortality rate17.73 deaths/1,000 live births (2000 est.)Life expectancy at birthMale 66.98 yearsfemale 75.04 years (2000 est.)Ethnic groupsIndian 68%, Creole 27%, Chinese 3%, French 2%ReligionsHinduism 52%, Christianity 28.3% (Roman Catholicism 26%, Protestant 2.3%), Islam 16.6%, other 3.1%LiteracyTotal population 82.9%male 87.1%female 78.8% (1995 est.)(Source http//en.wikipedia.org/wiki/Demographics_of_Mauritius,http//unstats.un.org/unsd/demographic/products/socind/population.htmtech)2.2.4 TechnologicalIt is commonly assumed in the literat ure that the successful accumulation of technology in a given developing commonwealth depends only on access to new in songation, stable macroeconomic conditions, market-driven signals and the supply of human capital. Mauritius is an outlier in the African scene in terms of its trade, industrial and macroeconomic regime. From the 1970s, Mauritius followed a combineed trade policy of import substitution coupled with incentives for exports through the Export Processing Zone. There have been three phases of adjustment since the mid-1980s, each with a different pace and coverage.Industries also plays an important role in an economy, the main industries in Mauritius are textiles, chemicals, food processing, tourism, metal products, non-electrical machinery and transport equipment. The food processing industry in Mauritius is largely composed of sugar milling. The Sugar cane industry arrived in Mauritius in the year of 1639. There are so many sugar-cane fields in Mauritius. There is als o now organic sugar production on the island. Textiles industries have been one of the major industries in Mauritius for past 30 years. The Chinese population is mainly responsible for the development of textile on the island.(Source http//EzineArticles.com/?expert=Ricky_MorganOxford Development Studies, Vol. 30, No. 1, 2002Firm Size, Technological Capabilities andMarket-oriented Policies in MauritiusGANESHAN WIGNARAJA*)2.2.5 EnvironmentalIn recent years, the United Nation Development Programme UNDP Environment Unit Mauritius has succeeded in mobilizing resources and increasing environmental sustainability in both Mauritius and Seychelles. The main achievements includeThe borrowing of a sustainable environmental management plan for an industrial estate that has served as a model for replication in other industrial estatesThe beingness of a co-management unit and the designation of a Marine Protected Area in RodriguesA comprehensive portfolio of Global Environment Facility (GEF) pr ojects developed for executionPromotion of biodiversity conservation in SeychellesSupporting the development of an Energy Policy for MauritiusAssessment of national capacity gaps for environmental management in SeychellesNational Plan for phase out of POPs in MauritiusUNDP remains committed to the continuation and enhancement of support and local and regional initiatives so as to promote environmental security measures in Mauritius, Seychelles and the region.(Source http//un.intnet.mu/UNDP/html/mauritius/energy_env.htmtop)2.2.6 LegalGovernments objective is to transform Mauritius into an international financial and business hub built on strong foundations. A number of important legislations were passed over the past few years to ensure that the legislative framework meets all the international standards and also aimed at improving the efficiency and competitiveness of our financial services sector.Company lawBusiness Facilitation (Miscellaneous Provisions) scrap 2006 (Act No. 21 Of 2006)Business Registration Act 2002Co-operatives (Amendment) Act 2006 (Act No. 6 Of 2006)Development Works throne (Repeal) Act 2007 (Act No. 1 Of 2007Regulations made by the Minister under section 360 of the Companies Act 2001(purchase of own shares)Regulations made by the Minister under sections 355 and 360 of the Companies Act 2001The Companies Act 2001The Trust Act 2001(Source http//www.lexadin.nl/wlg/legis/nofr/oeur/lxwemau.htm)Chapter 3SWOT of Maradiva, MaurituisStrengthsA perfect destination for honeymooners, with complete silent surrounding and privacy.Only all a la carte menu provided on the island.Offering a novel sort of idea to the customers An all villa conceptBasic category of the villa starts from 163 m, and is the largest square footage readjustment per room in Mauritius.Each Villa has its own private plunge pool.The Only resort with Ayurvedic Spa in Mauritius which is a big competitor for Shanti Ananda hotel Mauritius, who are innovation famous for their spas. Cilantro, one of its restaurants has a live teppanyaki Japanese Cuisine which is very famous all over Mauritius.WeaknessDue to the removal of brand Taj, the product Maradiva is unknown to the market, and has to create its new position in the market.Proximity from the airport isnt that good it takes much than an hour from the airport.The resort does not have a mix of rooms and villas, due to which it faces severe business losses in the slack season.Lack of qualified and trained personnel is a very big problem in Mauritius due to the reason that most of the staff members are employed just after the schooling.Location- the resort is on the west coast, whereas most of the hotels, water sports activities, places to overthrow are on the other side of the island.The hotel only carters to the niche customers.OpportunityThe resort should organize more(prenominal) guests from the Middle East.They should try and target the tourist from Russia, mainland China and Switzerland.The growing int erest of tourist looking for private holidays.ThreatUpcoming five star hotels.Duplication of concept with minor changes by new upcoming hotels.Being on seashore it always has a danger of the last tide in the sea.SegmentationMarket segmentation is the identification of portions of the market that are different from one another. Segmentation allows the firm to better satisfy the needs of its potential customers. Customers within any market rarely have similar needs and expectations. As the country of Mauritius had been under the rule ofBritish French people the place still holds a lot of common ideologies thus makingit a hit destination amongst the British and French Nationals. Based on this fact theresort segmented various markets of the world into key markets (UK, France,Germany, and Switzerland) and developing markets (India, Russia, South Africa,Australia). As Mauritius has been known as aHoneymooners Paradise so the hotel based in this fact has targeted young and affluentindiv iduals who would like to have their wedding done or a honeymoon. Not only theyoung but the place is a hit even with the elderly peopleTargetingTargeting or Target market filling is the process of deciding which market segments of the company should actively pursue to generate sales. After segmenting it various customers into segments has then found out those market segments which are highly profitable. The resort inorder to tap the honeymoon and wedding market has come outwith two explicit packages targeting those clients and are looking for a unique and distinctive experience. On more generic terms the resort looks at targeting key opinion makers,corporate leaders, well traveled discerning, who have experience of finest luxury productsand services, disposed towards high end luxury goods, looking for unique/distinctiveexperiences. fixPositioning is done to develop a unique selling proposition for the target segment. Positioning is the reason why hotels exist and why customers miss the company if it were to cease operation. Maradiva positioned itself as a destination resort. A company must be very specific in terms of its intended positioning or unique selling proposition if it wants to stand out among the clutter of choices confronting its potential customers.Chapter 3 selling strategies of MaradivaMaradiva majorly depends on foreign tourism, which states that the marketing stratergies can never be over emphasized. Marketing departing had the bonus of getting in the customers to the resort through various doer and techniques. Maradiva knew that it cannot replicate the various marketing strategies being applied by other hotels as they offer a different sort of product and need to call out of the box in order to formulate new marketing strategies.3.1 Pay for few nighttimes and stay for moreMaradiva not only resorted to market themselves in the form of offers but also marketed themselves in the form of various packages which are designed as per the guest need s and preferences. Various packages like free night offer which includes, the guest has to pay for five nights and stay for seven or pay for seven nights and stay for nine nights etc. such type of offers are called tactical offers.Maradiva is well aware of the booking patterns that take place and in accordance with the equal various offers are launched during lean as well as peak season. During periods of low occupancy these tactical offers are provided to boost sales from their key markets mainly the major tour operators who provide maximum business to the hotel. they are implemented with an idea of generating occupancy levels so as to keep the business running comfortably. The tactical offers are designed in such a way so as to garner maximum amount of business during lean season and to maintain the influx of guests during peak season. As the tactical offers are different for different tour operators and vary a lot with the country as well, in U.K (5nights=10nights) France ( one spa treatment per person)3.2 Mauritian Promotional Offer A tool to capitalize on domestic marketMauritius even though is a small island and the potential of domestic tourism is not phenomenal but every marketer feels that there is an opportunity in every situation. There is no dearth of people who want to live a disembodied spirit of luxury or would want to spend a day or two at a place where they feel theres value for money. Taking all that into experimental condition the Sales Marketing team of the resort came up with an offer known as Mauritian Promotion Offer in order to attract most local niche clientele. The offer was officially launched in December 2006 as a tactical offer but later owing to its potential it was later upgraded to an all year round offer. The offer included a rate of MRU 14,000 per night for a Luxury Villa with pool, with a HB meal plan inclusive in the package.3.3 Wedding and HoneymoonersMaradiva is the perfect place for romantic luxurious holidays, the ideal love nest for newlyweds. During earlier times when the resort just came into being they had a basic and simple marketing strategy to market the hotel as a wedding or a honeymoon destination among young couples in the form of wedding and honeymoon packages which would include the accommodation along with the various formalities that need to be performed which is taken care of by the guest relation manager. The guests are also provided with various facilities like candlelit dinner, champagne breakfast, and massage for the groom and various beauty treatments for the bride. The honeymoon package would constitute of providing a 50% discount on the brides twin sharing rate along with various added values like coffee scrub, candlelit dinner, champagne breakfast, rose petal bath etc.3.4 Affiliation packagesMaradiva is associate to Leading group of small hotels, Great hotels of the world, Leading Spas f the world which helps the resort to generate more room nights than its competitor s. The customers had the choice of choosing the package amongst a considerable array of packages depending on their needs. For example a guest could choose a 5 dayMaradiva Spa Stress Relief and Relaxation which would spread across a span of 5 days and has been carefully designed inorder to provide absolute relaxation to the guest. The package would encompass things like Level 1 2 of Yoga Meditation, Yoga Nidra, Trataka, Aroma Bath + Scrub Wrap, Surya Namaskar and Pehlwan Malish. The resort also boosted of a Golf Package as the resort was in close proximity to the Tamarina Golf Course.passportIn this section the researcher has illustrated various marketing stratergies implemented by Maradiva, Mauritius and the SWOT analysis done by the researcher on the marketing strategies would enlisting few recommendations based on the knowledge and experience garnered during the operational and project stage of understudyMaradiva should look at penetrating other new acclivitous markets suc h as South Africa, Middle East, Australia, Russia and India by developing a holistic approach, with the use of explicit marketing tools catering in specific to the particular(prenominal) market. By doing so the resort would be able to remove the dependability factor on its few restricted key markets and in turn would help them in being better prepared for unforeseen situations.With the growing spending power of people in the developing countries it would not be wrong to target those people who prefer travelling abroad during holidays by having country specific holiday packages in order to profit from situation. The hotel needs to take into consideration various countries trend for holidays.Internal marketing Hotels should practice internal marketing the hotel should motivate their customer contact employees and all their service people to work as a team to provide customer satisfaction.External marketing The sales marketing should have good communication skills and should provide more interactive sessions to their clients should be able to market the product efficiently.The resort has done a lot to their micro site but the researcher still feels that the website can be made more appealing by adding blogs, interactive event / activity calendars, hotel guest scrapbooks, photo sharing contests, testimonials which helps in generating interests site stickiness ultimately increase the bookings.The airfare for a place like Mauritius is quite expensive and this discourages budget travellers from coming to the country. A possible solution for this could be combinable offers with airlines like Air Mauritius and Emirates which could help create a new segment of customers for the hotel. The hotel from its side needs to establish a healthy relationship with such airlines so that offers such as room fare inclusive of airfare would tempt customers to come to the hotel.In this tech savvy age the resort can also look at establishing a database of e mail id of their loya l customers and can optimally use the e mail marketing technique in order to reward customers and offer lower rates to them which do not in general feature on the website.ConclusionsMarketing has been and would always be an integral part of the smooth functioning of a hotel. Without proper marketing strategies there wouldnt be any guests coming to the property or even if they would be the hotel would be targeting the wrong sort of clientele to cater to. Marketing in hospitality industry is a balanced form of being an art with a lot of science behind every decision being taken under its domain. A more common view is that marketing activities are prepared in order to inform the customers about the products that they may enjoy or that they may improve their life in some way. Few marketers also see it as an opportunity for specific reasons like encouraging repeat purchases and building brand loyalty and affinity.Mauritius, having a very small population with large number of hotels com ing up hospitality personnel are not afraid of losing their jobs. Their attitude is laid back, with the habit of procrastinating things. In order to attract and retain repeat guests it is necessary to primarily retain honest and loyal service personnel. The main reason why Maradiva had to run down its shutters was its inability to attract guests to occupy its villas. There were a few minor errors with the marketing aspect. It was the price that did not suit many tourists pocket. Maradiva also face a problem of its inventory being less i.e.only has villas. Other five star hotels which had a mixture of villas and rooms did roaring business at the same time. This clearly goes to show that the hotel should have done a more precise market survey before going into such a loss.