Wednesday, May 6, 2020
Ethical Analysis of Gumdrop Northern Free Essays
At the conclusion of this audit, the following ethical Issues were identified: emergence to International law and treaties by exporting manufactured landmines to Afghanistan and Iran; use of substandard materials used to construct body armor; disclosing Information from the military that would prevent Injuries; and the formulated plan to send out notices under the Worker Adjustment and Retraining Notification (WARN) Act, and severing ties to the collective bargaining agreement which resulted in 100+ employees out of work. Despite the several issues that have been identified, we are optimistic that we can implement solutions that can correct these incidents and prevent future issues from happening. Due to the magnitude of the issues that were found it is essential to get a basic understanding of business in ethics. We will write a custom essay sample on Ethical Analysis of Gumdrop Northern or any similar topic only for you Order Now Ethics can be perceived differently among people because it has several nuances. According to Frederica, Farrell and Farrell, The American Heritage Dictionary defines ethics as, ââ¬Å"The study of the general nature of morals and of specific moral choices, moral philosophy, and the rules or standards governing the conduct of the members of a profession. (p. 7). This Is a good starting point to help us further understand the importance of ethical compliance. For the purpose of this memorandum, the definition that will be used is the principles, values, and standards that businesses should adhere to, to ensure it is acting within ethical standards. Furthermore, studying ethics in business is very important because ethical misconduct is a considerable concern in business throughout the world. My ethics committee and I have referenced this definition and statement through the duration of our audit, and is the foundation of our findings. Now that we have discussed the definition and importance of ethics in business, we will discuss ACH ethical Issue that was discovered in Gumdrop Northerner operations. After each ethical Issue has been addressed, we will discuss potential solutions and our reasoning for the betterment In your short and long-term goals. Ethical Issue #1 : Ignorance to International Law and Treaties by exporting manufactured landmines to Afghanistan and Iran. This is a very dynamic issue because there is conflict of interest. This conflicts with your parent company, the Department of Defense because you are a long-term military contractor that manufactures munitions, body armor and armored vehicles for the United States military. The U. S. Litany is currently fighting in a decade-long war in the Middle East, and landmines have been common amongst the fatalities since the beginning of the war. Improvised explosive devices (Deeds) have continued to be the number one killer of United States armed forces in Afghanistan, and 60 percent of all combat- related deaths in 2011 alone were caused by Deeds (Moral, 2011). Deeds are the most common method used by insurgent groups and rebels who wage non-traditional warfare, and are designed to kill or cause serious bodily harm. The conflict of interest that my committee and I are most concerned with is the simple fact that you are opposed to supply effective body armor to the coalition forces to protect them from explosive blasts, but you are also supplying the enemy with the essential tools that cause these aforementioned explosive blasts. This conflict of interest not only violates international law and treaty, but you are potentially responsible for deaths of uniformed personnel serving in the armed forces. It is your responsibility to behave ethically, and this has not happened by your ignorance to the law, and the endangerment you have caused to uniformed personnel. In addition, the landmines hat you sell to the Taliban and Iranian government are defective, and many of who attempted to plant the mines was killed in the process due to the faulty switches. It should also be noted that many of these deaths were children and soldiers of each respective country. This ignorance on every angle is unethical by all counts. The basis of this ethical issue can have a wide range of effects legally, and can have severe repercussions on corporate stakeholders. The legal effects are very straightforward. The company can potentially be taken to court to file the violation of international law, and the consequences can be severe. For example, Department of Justice lawyers are rumored to be involved where families of injured or killed service members can consult attorneys to investigate Gumdrop Northerner contributions. Furthermore, the stakeholders are also potentially at risk. Anyone who has a stake or claim in your business can be directly affected because of your negligence to law, and this can damage your reputation, which is important in keeping your contract with the Department of Defense. In addition, it can Jeopardize the future of your company. Ethical Issue #2: The Use of Substandard Materials Used in the Companyââ¬â¢s Manufacturing and Failure to Disclose to Stakeholders It has also been brought to our attention that Gumdrop Northern has utilized substandard materials in their manufacturing. Given the nature of your business, the United States military needs state of the art body armor that has the sophistication to stop penetrating shrapnel aimed for the body. The use of substandard materials is unacceptable because the safety of our soldiers is paramount in todayââ¬â¢s war. The body armor is the primary mode of protection that protects Americaââ¬â¢s sons and daughters, and the armor you are providing the U. S. Litany does not protect them to Afghanistan and Iran. The substandard material is not only limited to the personnel body armor, but it also is connected to the armored vehicles used to transport military personnel throughout the theater. It has been revealed that there is a thin sheet of steel on the underside of the vehicle that makes them extremely vulnerable to improvised explosive device explosions. This is alarming because, as previously mentioned, Deeds are among the chief causes of death of soldiers. You have structured a vehicle that is protective on the sides and top, but have ignored arguably the most important part of up-armored vehicles used in the Middle East. This also leads to the negligence of the company to disclose this information to its primary and secondary stakeholders, and failure to understand the stakeholder orientation. The failure to disclose information can cause the rescission of an agreement. In your case, the Department of Defense can void the agreement with your company and also pursue a money settlement. Also, the purpose of the stakeholder orientation is for you to understand and address the demands of a stakeholder. The U. S. Litany is your primary stakeholder and you have failed to meet their demands and standards by using substandard materials and failing to disclose this information to them. It is your responsibility along with other top managers in Gumdrop to act in a responsible manner by providing truthful information to all stakeholders. We have found in our audit that you have failed in this field, and you have not complied with ethical standards. Ethical Issue #3: The formulated plan to send out notices under the Worker Adjustment and Retraining Notification (WARN) Act, and severing ties to the collective arraigning agreement, which resulted in 100+ employees out of work. We have found that your actions under the WARN Act are completely legal because you have acted within all the guidelines underlined in the act. Also, your plan to file for bankruptcy to reject the collective bargaining agreement is another area of concern. However, we believe it is unethical to do so because of the circumstances that you have found yourself in the aforementioned ethical issues. This issue is controversial because you are middling between the lines of ethical and legal issues. We believe that this is an unnecessary approach, and there are other venues to pursue to resolve the issues at hand. I believe you should place significant value on your shareholders because they are primarily responsible for the day-to-day operations and ensuring your company is bringing in profit. Therefore, you should treat your people right and you can accomplish this by giving them a fair shot. If you trade seats at the table, it would seem unfair to dump them so quickly because they have families to feed, bills to pay and priorities to maintain; so we think you should do the right thing and help them in any way possible. The ethical issues hat we have identified are substantial and they can have serious potential effects on the reputation of your company and its future. With that said, we have outlined a detailed plan that we have formulated as the best for the business. Resolving the Ethical Issues: All of the issues have been put on the table and addressing possible solutions is statement of Gumdrop because this is where we believe you have failed. We suggest that a meeting is held by the Board of Directors to re-tool the mission statement of Gumdrop Northern. When all of the issues are put on the table it helps to have all eye players there to innovative think of the direction the company wants to move in. For the first ethical issue, the resolution is quite simple. We believe that Gumdrop Northern should adhere to international law and treaty by severing your ties with Afghanistan and Iran. It doesnââ¬â¢t make sense to supply the enemy with antipersonnel ammunition, and protect the individuals fighting the enemy. Although more than half of your profits derive from these clandestine operations, it is conflicting with your interest by protecting the United States military with your manufactured products. This relationship should be terminated, and it should tie into your companyââ¬â¢s mission statement. Furthermore, it is your moral and ethical responsibility to report your shortcomings. I believe that showing integrity defines a company, and this can be the first step to repairing and strengthening your relationship with your stakeholders. It is also a great first step into repairing your corporate image. Moving on, the second ethical issue that we discovered is definitely a priority in addressing. The United States Military deserves the best protection because of their illnesses to volunteer their lives to fight for our freedom. Gumdrop Northern is using substandard materials when superior equipment should be used in preparing the body armor and armored vehicles. I think that the best solution to this problem is using the best equipment available to help protect the soldiers. I believe you should immediately recall all the body armor that has been issued, and rebuild the body armor that the soldiers use. This move is good for your image because it shows you have identified faults in your products, and will work relentlessly to alter it to meet military standards. You are also doing yourself a favor by telling your primary stakeholder that there are issues with your product, which is something that you have failed to do so. In addition, you should also revamp the armored vehicles that you supply to the troops. This is the primary mode of the transportation for uniformed personnel, and ensuring the safest vehicle possible should be a priority. Gumdrop Northern should provide additional sheets of metal to the bottom of the vehicle to strengthen the most vulnerable part of the vehicle. Finally, the third ethical issue can be resolved by not doing any of it. It is our belief that you should take responsibility for your actions, and slowly repair your image. I believe that taking care of your shareholders is important in business because they make sure your company is working. Therefore, the essential portion of this resolution is to own up to your mistakes and build on what you have. This solution shows ethical responsibility, and this is the focal point of this memorandum. I previously mentioned that an essential part of this meeting is also to identify fiduciary duties of the Chief Executive Officer and the Chief Operation Officer. It is the ethical responsibilities of each of these managers to gain back the trust and confidence of the stakeholders (I. E. ââ¬â United States Military). This is the best alternative that is the best for the business considering the ethical issues that were identified and the potential circumstances that were discussed. It is the right thing to fixing your problems. By owning up to your mistakes it may damage your companyââ¬â¢s problems in the short-term, but you are strengthening your company in the long run. I believe the first couple of months will be difficult because of the backlash youââ¬â¢ll chive by showing your integrity, but with strength and perseverance, Gumdrop Northern can return to prominence. I also believe that part of repairing the company is implementing an ethics committee and appointing an individual to act as the ethics officer. I believe this is essential because it would help prevent issues like the previously mentioned from happening in the future. It also will keep Gumdrop Northern in ethical compliance. Your company has fallen short in this area, and it should be a priority in your companyââ¬â¢s mission statement. How to cite Ethical Analysis of Gumdrop Northern, Papers
Monday, May 4, 2020
Reading Response Chen Wei free essay sample
Fat is a Feminist Issue -Susie Arroba In Rhubarbs essay, she maintains that fat is a feminist issue, female obesity is an expression of independence rather than a personal failing. First she details the obesity epidemic in American women, the emotional effects of overeating on women, and she lists her views about the causes of obesity. After that the anther begins to offer a feminist explanation of womens obesity, she suggests that womens obesity is a challenge to gender stereotypes and should be viewed as a societal illness, not a personal failing.Arroba builds her argument moving from biology to culture, in order to show that female obesity is a feminist choice, rather than the availability of unhealthy food, less of exercise, bad genes and so on. Arroba argues that womens inferior societal position is the result of a long time belief that womens biology makes them fit for the roles, like wife or mother. We will write a custom essay sample on Reading Response Chen Wei or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page And a woman must catching a man with her good looks and pleasing manner, therefore a woman is highly susceptible to the vagaries of fashion, media , and make-up in an effort to make her more desirable to men.However, in the authors opinion, despite being thin is consistently viewed as positive and it is seems necessary for women, the obesity may express rebellion against the strictures of cultural conformity what the women face. After reading Rhubarbs essay, I basically agree with her views. In todays most peoples opinion , fat is hard to accept and a woman who is thin looks better than a woman who is fat, that will lead to women eat as less as possible , and the woman who is fat , she will try her best to lose weight , and the reason why she do so is that It can make her looks more normal or more beautiful for man . It means the womens freedom is deprived Indirectly. First womens obesity should not be discriminated against, there are many ways to cause women fat, and fat or thin is a womans feminist, they can enjoy food what they like, and feeling confident whatever they fat or not. On the other hand , fat is not means unhealthy but not beautiful. However oppose the opinion of Arroba about the obesity may express rebellion against the strictures of cultural conformity what the women face. I think woman can express their feminist in many different ways.
Monday, March 30, 2020
The Strategy Adopted by Ikea free essay sample
Explain, in details, the strategy adopted by IKEA, and how it successfully did the positioning. ***At business level strategy Focus Strategies By implementing a cost leadership or differentiation strategy, IKEA choose to compete by exploiting their core competencies on an industry-wide basis and adopt a broad competitive scope. Alternatively, IKEA can choose to follow a focus strategy by seeking to use their core competencies to serve the needs of a particular customer group in an industry. In other words, IKEA focus on specific, smaller segments (or niches) of customers rather than across the entire market. Focused Business Level Strategies involve the same basic approaches as Broad Market Strategies. Focus strategies can be based either on cost leadership or differentiation. Focused Cost Leadership Strategy IKEA that compete by following cost leadership strategies to serve narrow market niches generally target the smallest buyers in an industry (those who purchase in such small quantities those industry-wide competitors cannot serve them at the same low cost). We will write a custom essay sample on The Strategy Adopted by Ikea or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Global furniture retailer IKEA provide customers with ââ¬Å"affordable solutions for better livingâ⬠through use of the focused cost leadership strategy.The company offers home furnishings that combine good design, function, and quality with low prices. IKEA does this by offering low-cost, modular furniture (assembled by customers), using self-service as an alternative to having sales associates follow and pressure customers to buy. IKEA displays its products in room-like settings so that customer can view different combinations of furniture, eliminating the need for assistance from sales associates or decorators to visualize the setting and reducing employee costs. Customers also pick up their own purchases to reduce the companyââ¬â¢s costs. Finally, stores address the needs of shoppers (e. . , extended hours and in-store childcare) while they shop. Focused Differentiation Strategy IKEA following focused differentiation strategies produce customized products for small market segments. They can be successful when either the quantities involved are too small for industry-wide competitors to handle economically, or when the extent of customization (or differentiation) requested is beyond the capabilities of the industry-wide differentiator. For example, Manufacturers such as Ferrari, Aston Martin, and Lamborghini compete in the tiny super car category with prices starting at $150,000 and running as high as $600,000. These cars are more than just transportation. Just as was noted for industry-wide differentiators and low-cost producers, IKEA choosing to focus must be particularly adept at completing primary and secondary value chain activities in a superior way. Issues related to the five competitive forces are similar to those discussed for the differentiation and cost leadership strategies, except that the competitive scope of the focus is on a narrow segment rather than the industry. ***At corporate level strategyThe IKEA international strategy uses a franchise corporate level strategy spreading risks and sharing resources. And as IKEA has moved into an ever expansionist mode, pursuing both multi-point competition and vertical integration to achieve market power, it found markets ready and willing to adopt the IKEA mindset of low cost, European designed furniture ââ¬â ââ¬Å"supplying Scandinavian design at Asian pricesâ⬠. Britain, for example, was wallowing with a complacent Habitat (nicknamed ââ¬Å"Shabitatâ⬠) which IKEA came to own. This was another key to the IKEA success story ââ¬â timing. An industry-wide competitor may recognize the attractiveness of the segment served by the focuser and mobilize its superior resources to better serve the segments needs. Preferences and needs of the narrow segment may become more similar to the broader market, reducing or eliminating the advantages of focusing. There are a focusing IKEA may be ââ¬Å"out focusedâ⬠by its competitors. A large competitor may set its sights on an IKEAââ¬â¢s niche market. Customer preferences in niche market may change to more closely resemble those of the broader market.It often involves compromises becoming neither the lowest cost nor the most differentiated IKEA. It becomes to ââ¬Å"stuck in the middleâ⬠. The strong commitment are lacked and expertise that accompanies IKEAs following either a cost leadership or a differentiated strategy. 4 Based on your answer to the above, how can managers guard against such risks? A mixed strategy is not advisable because cost leadership and differentiation may call for inconsistent policies and conflicting demands on operations, budget allocations, choice of suppliers and distributors, etc.Pursuing them simultaneously may reduce the effectiveness of the policies resulting in weak or no advantages. It may also make it more difficult to create a clear image in the minds of customers. Priorities may also be unclear in the minds of staff. On the other hand, IKEAs in reality rarely competes purely on cost or differentiation. This shows that combining the two is possible. As long as the strategy does not require mutually conflicting practices, it is fine to mix the two. IKEA makes very few products internally and relies almost totally on its network of hundreds of suppliers.These collaborative long-term partnerships with suppliers are rooted deeply in IKEAââ¬â¢s corporate history, and the character of these ties has become part of the culture. It is through the suppliers that IKEA has been able to make innovative designs featuring environmentally responsible materials and an efficient use of resources and translate them into bottom-line results. The key suppliers, in turn, use links with IKEA as vehicles to stay innovative, because innovation is the only choice if the supplier wants to retain this powerful buyer; IKEA is powerful enough to be coercive, and ââ¬Å"the giantâ⬠is not to be dismissed easily.Another aspect to consider in this case is a process that starts with regulation, which has prompted IKEA to work with key suppliers to meet the new requirements (pushing them to do so at equivalent or minimally increased costs). They develop a higher-quality product, which motivates IKEAââ¬â¢s competitors to match the design and materials innovations as well as the economic efficiencies. Meanwhile, the suppliers improved skills and capacities make it more competitive, enabling it to expand its business with old and new buyers.Consequently, the industry is stimulated to match and exceed the IKEA example, the natural environment wins because waste or pollution is reduced or eliminated, and the customer benefits by being able to purchase a better-quality product. Students should emerge from the discussion with a sense of how IKEA illustrates the ripple effects through markets, industries, and societies of innovation around environmental concerns (and IKEA is not an isolated example, merely an illuminating one).IKEA save to create by successfully transferring capabilities and competencies from one SBU to another SBU. The value is created from economies of scope through: Operational relatedness in sharing activities say purchase and sales ; corporate relatedness in transferring skills or corporate core competencies among units. The difference between sharing activities a nd transferring competencies is based on how the resources are jointly used to create economies of scope.
Saturday, March 7, 2020
Debates in History essays
Debates in History essays Debates in History: Short Academic Review of a book/chapter. ...the power of the image of Shaka lies not, as most previous commentators have suggested, in its openness to manipulation, to invention, and to imaginative reworkings. Rather it is to be found in, ... the historical limits and constraints attached to Shakan historiography...and to the possible depictions of Shaka. In this essay I intend to discuss chapter 2, of Terrific Majesty by Carolyn Hamilton. Throughout history Shaka has been portrayed in many different guises, from a despot and villain, to a hero and military genius. This chapter covers various historical accounts of Shaka, and how interpretations of him as a person differ, according to the perception and the motivation, of the author. I shall be comparing the resources utilised in the book, with those that I am already familiar with, for example Fynn and Isaacs, and with the evidence found in the Praise poems, of the relevant period. The first issue presented by the book is the information supplied by Henry Francis Fynn, who in 1822, was among the first people to encounter and document Shaka and the Zulu tribe. He and Francis Farewell travelled across land from the Cape to meet with Shaka in 1824, for trading purposes. At this time Shaka was depicted as being open to the idea of a British settlement and showed no signs of hostility. To the surprise of the trading party, the Zulus were well ordered and courteous under Shakas ruler ship. On reading an extract from Fynns diary, it is clear that trade which had began with the Zulu nation, under the tyranny of Dingiswayo, continued at a more rapid pace during Shakas rule. In the first year of his chieftainship he opened a trade with Delagoa Bay, by sending 100 oxen and a quantity of elephants tusks to exchange for beads and blankets... the trade thus opened by Dingiswayo was afterwards carried on, on an extensi...
Thursday, February 20, 2020
Timeline of Historical growth in Terms of Technological Advances Essay
Timeline of Historical growth in Terms of Technological Advances - Essay Example Based on this finding, they recommended the use of MRI technology in identifying chemical compounds (http://www.isbe.man.ac.uk) Damadian believed MRI technology to be a means of manipulating genetic characteristics of a living being. Nevertheless, empirical research is ongoing in order to validate this assumption (http://www.isbe.man.ac.uk). Clinical application of MRI initiated in US (http://www.isbe.man.ac.uk), which revolutionized the world of medicine through providing exclusive integrated knowledge of human physiology, thus assisting physicians in identifying the interdependencies of various human organs with each other. A famous medical equipment company purchased the MRI machine in order to initialize its mass production (Wehrum, 2011). Along with this a diagnostic method for Parkinsonââ¬â¢s disease was perfected through integration of MRI (Seibyl, et al., 1997). A sub-dermal scanner through integration of CT and MRI technology was developed at Siemens (Wehrum, 2011), which offered detailed understanding of the interdependencies of various functions in human body. In this modern era of technology, importance of MRI is increasing as a treatment for skin diseases because conventional methods of treatment are reported to be causing significant epidermal damage. On the other hand, MRI technology is believed to be much more effective than traditional treatments. However, MRI also has some consequences for heart patients, because it influences their heart rate in a negative fashion, through causing their heartbeatââ¬â¢s rhythm to collapse. As a result, MRI is not recommended for cardiac patients except in extreme cases. This paper focused on analyzing the history of MRI scanning system in medical science. MRI blessed medicine with the strength to scrutinize internal condition of humans, which was considered absurd in the past. However, at that time, physicians resorted to external
Tuesday, February 4, 2020
ABC Development Assignment Example | Topics and Well Written Essays - 2000 words
ABC Development - Assignment Example The housing project was scheduled to begin on January 1, 2013 and to be completed in the first few days of the month of December 2013. However, the construction process was delayed by 1 week. The planning process also realized delays of about 3 weeks. In total, delays in the schedule were 4 weeks (approximately 1 month). The planning permission was to commence on March 1, 2013 while construction was to begin a month later (April 1). It means that the first complete housing units were to be rescheduled to the end of October. The sales process should have started on November 1, 2013. The sales would remain at the same rate indicated earlier in the feasibility study since the shifts in house sales have not affected the current revised rate. It remains at 2 housing units sold per month. However, completing the sales would be realized three in February 2014. There are changes on the interest rate charged by the financial institution responsible for the funding of the housing project. With the increase in the rates of interest, loan facility would have to be viable until the end of February 2014. The simple interest would have to be scaled to 1.3% or simply 1% because of the 0.8% rise in the simple interest rates. The interest on the loan facility remains at the original schedule of a quarterly model in arrears. The developerââ¬â¢s cash will be used to pay it out. Roll-ups will not be allowed on the payments. The commitment fee of à £5000 will not be affected by scaling up the interest or the changes in planning and construction schedules. It will still be paid once the loan has been processed. The disposal fee of à £500 per housing sold will also remain unchanged. The funding of construction costs in a revolving basis will not be affected by the changes. It will remain at à £525,000. The remaining land cost (à £80,000) and
Monday, January 27, 2020
The Basic Tourism System Tourism Essay
The Basic Tourism System Tourism Essay Fennell defined tourism as the interrelated system that includes tourists and the associated services that are provided and utilized facilities, attractions, transportation and accommodation to aid in their movement (Fennell, 1999). 2. Tourism Defined Tourism, according to the Oxford dictionary, is the theory and practice of touring or travelling for pleasure. According to Leiper (1979) the foundations of tourism are thought to have Greek origins, with the term describing a circle, reflecting a key component of tourism, returning to the point of departure (Leiper, 1979: 391). The Leipers model which is also known as the basic tourism system is shown in the figure 1. Figure 1. The Basic Tourism System Source: Leiper (1995) Leiper.N. (2004) Tourism Management (3rd Edn) Frenchs Forest: Pearson p.53 A tourist, as defined by the World Tourism Authority is someone who moves away from home on a temporary or short-term basis for at least 24 hours and less than a year, it can be internal movements within a country (domestic tourism) or going to another country (international tourism) (Law, 2002: 2). McIntosh (1977) described tourism as the science, art and business of attracting and transporting visitors, accommodating them and graciously catering to their needs and wants (McIntosh and Goeldner, 1977: ix). Today, tourism is one of the worlds largest and fastest expanding industries. In 2010, the overall global tourism export exceeded US$ 1 trillion (World Tourism Organization, 2011). Tourism exports are accountable for 30% of the worlds commercial exports and as a category ranks fourth in size after fuels, chemicals and automotive products (World Tourism Organization, 2011). 2.1 Relationship between Tourism and Transportation Transport has a direct connection with the tourism industry. Progression in transportation technology has helped a lot to form the modern tourism industry we are evolving today. Since the beginning of time, people have been traveling by various modes. Tourism and transportation are inexorably linked (McIntosh et al, 1995). Without the element of transport there is by definition, no tourism. This means that, although transport contributes for only a part of the tourism business, without it there is no tourism business. However, transport is essential not only to tourism, it is also essential to the economy and indeed to society (Lockwood and Medlik, 2003). For that when we think of tourism we think of people who travels for main purpose of visiting ,that is, a particular place for sightseeing, visiting friends and relatives, taking a vacation and having a good time (Goeldner et al, 2009). These visitors will use all forms of transportation available. Furthermore, tourism is the entire world industry of travel, hotels, transportation, and all other components, including promotion that caters for the needs and wants of travelers (McIntosh et al, 1995). Thus, tourism can be seen as a whole range of individuals, businesses, organizations and places which works together in some way to deliver a travel experience (Leiper, 1979). In accordance with the World Travel and Tourism Council (WTTC), tourism is the worlds largest industry surpassing autos, steel, electronics, and agriculture (McIntosh et al, 1995). Tourism set off important indirect development effects that improve the quality of life of citizens and enhance a countrys overall economic prospects. Crouch and Ritchie (2000) interestingly summarized (Figure 2) the various factors that together make the attractiveness of a tourist destination experience. Furthermore, they emphasized on the importance of the service infrastructure layer, which includes transport services, in the tourist destination experience. The destinations general infrastructure services in this category in fact represent one of the most important factors. The tourism phenomenon relies heavily on public utilities and infrastructural support. Tourism planning and development would not be possible without roads, airports, harbors, electricity, sewage, and potable water. The infrastructural dimension is thus a necessary element for tourism development and the factors below are all basic elements for attracting visitors to a destination. Kaul (1985) also recognizes the importance of infrastructure, more specifically transport as an essential component of successful tourism development meaning that it encourages the creation of new attractions and the growth of existing ones. Figure 2: The tourist destination experience Source: Crouch and Ritchie (2000) Transportation considered as one of the four main categories of tourism (transportation, accommodation, food and beverage services and other tourism goods and services). Dwyer and Forsyth, (1993) said that transport activities are fundamental for tourism because they provide the connection between generating and destination regions and the ability for tourists to move around the destination, that is, by making use of inland transportation services. The transport industry is also recognized as a central factor in destination development. Transportations included items such as ships, airplanes, buses, trains, limousines, taxis (Nariida et al, 2009), car traveling, (Rodrigue et al, 2009), cog railroads, aerial tramways, and similar passenger transportation facilities. Any and all of these modes may be relevant for tourism or recreational travel. Recreational facilities can include parks, stadiums, sporting facilities, and beaches. Furthermore, tourism sites are attractions for tourists as well as local residents and may include recreational facilities as well as cultural attractions (such as historical, musical, or educational facilities). Each type of recreational or tourism facility can have special and specific transportation needs (Petraglia and Weisbrod, 2004). Car traveling is usually an independent mean of transport. The driver is the one who decides where, when and how he is going to get to a destination. It is usually cheaper since roads fees are not directly paid but rather from taxes. It is the only transportation mode that does not require transfers, in the sense that the whole journey, from door to door can be achieve without even stopping (Rodrigue et al, 2009). Consumers choose cars based primarily on convenience and comfort (remote door openers, navigation systems, sound systems and cup holders) rather than maximum speed (Litman, 2007). Improving the quality of alternative modes is important for attracting discretionary travelers and therefore redu cing traffic problems such as congestion, accidents and pollution emissions (Litman, 2008). Ships as we know water travel is a major of tourism and contributes considerably to the development of travel as well as airplanes. Airplanes such as (Cathay Pacific, Emirates, Royal Jordanian) providing the seats which an individual traveler, business person or tour operator may purchase. On the other hand, rail travelers worldwide often prefer rail travel, (McIntosh et al, 1995). The operators of high-speed rail services find reliability and punctuality important factors that contribute to higher market shares (Jorritsma, 2009). Recently, train operating companies are delivering acceptable (and contractual) standards of service delivery in terms of information, comfort, cleanliness and quality of service on trains and at stations (Lyons et al, 2011) which are very important elements that tourists will consider in their decision process. High Speed Rail advantages are many, including getting people quickly and comfortably (Kinstlinger, 2009). But in Mauritius since we do not have tr ains therefore we will not lay much more emphasis on them. Consequently, having adequate taxi, limousine services are essential in a tourist area. Ideally, taxis should have removable and washable seat covers so the car always presents a clean appearance to the passenger. Also the taxi driver to make the best impression should show some courtesy by dismounting from the drivers seat and open the door for the passenger. He or she should assist his/ her passengers concerning their luggage or any other stuff and be courteous all times. Training taxi drivers in foreign language would ease communication and therefore create more foreign language ability (McIntosh et al, 1995). Usually, it is available 24 hours a day, seven days a week, providing a service to those who may have no other form of transportation. Therefore, Taxi service is a very important source of demand response transportation in many communities (Ridley, 2006). Moreover, buses are the most likely transit mode, which inten ded for tour use should have large windows, air conditioning, comfortable seats and rest room facilities. Springs or other suspension systems in the coaches should be designed so that the joggling of passenger is kept to a minimum or eliminated. Personnel assigned to buses should be selected for suitable temperament, courtesy and spirit of hospitality (McIntosh et al, 1995). Bus Rapid Transit is considered a more affordable alternative to rail for improving transit service quality and attracting travelers who would otherwise drive on congested urban corridors (VTPI, 2007). Bus organization, bus industry advocates believe that this form of transportation is particularly well suited to certain needs of tourism, especially one way trips of 150 miles or less. Furthermore, rental cars an important aspect of automobile travel is the rental car industry, whose growth has been paralleling or exceeding the growth in air travel. Taxi and Limousine service companies play an increasingly import ant part in tourism. Local transportation companies perform essential services for airlines in servicing departing and arriving passengers as well as providing similar services for bus, rail, and shipping lines (McIntosh et al, 1995). When taking a look at the position occupied by the various modes of passenger transportation one find that air travel dominates long -distance and middle-distance tourism. The nations economy and the tourism industry need a healthy air transportation system. The private automobile dominates for shorter trips and is the most popular means of travel for most domestic journeys. The auto is also very important in regional and international tourism. Affordability, flexibility, and convenience make auto travel the most popular mode of transportation all over the world. Air is the primary competitor to the automobile when it comes to travel, especially for long trips. The advantages of air travel, the quantity of service, speed and comfort must be weighed by travelers against the automobiles advantages of price and accessibility (McIntosh et al, 1995). But in Mauritius since it is an island, it is mainly accessible from air and the sea, therefore this type of competition does not exist. Furthermore, it is important to consider demand and supply when talking about transportation as they are together forming the transport market (Lockwood and Medlik, 2003). Many of the components of the tourist trip for example, transport and accommodation are demands derived from the consumers desire to enjoy what a destination has to offer in terms of things to see and do (Cooper et al, 2008). So, demand and supply are the main components which made up the transportation industry. 2.2 Transport Supply and Demand It is very important for a country to have the most efficient transport system. Efficiency means to say that the transportation system need to satisfy the transport demand for freight and passengers by using the best systems and the most appropriate balance between public and private transport and between modes of transport (For example; rail or road). The objective is to decrease overall transport costs for the collectively including direct costs (operating costs of the rolling stocks, the costs of infrastructure and the costs of time, security and comfort) and indirect costs (such as noise, pollution, accidents etc.) Transport supply can be defined in terms of infrastructures (capacity), services (frequency) and networks (coverage). Capacity is often assessed in static and dynamic terms the number of passengers, volume (for liquids or containerized traffic), or mass (for freight) that can be transported per unit of time and space is commonly used to quantify transport supply (Rodri gue et al, 2009), and these depend on the four basic elements in any transportation system: the way, the terminal, and the vehicle and motive power (Cooper et al, 2008). Transport demand is expressed as transport needs, even if those needs are satisfied, fully, partially or not at all. Similar to transport supply, it is expressed in terms of number of people, volume, or tons per unit of time and space (Rodrigue et al, 2009), other refers it to the amount of mobility and accessibility people would consume under various conditions (ITE, 2003). There is a demand for tourism products and demand for alternative non-tourism products (Lockwood and Medlik, 2003). Tourism demand and non-tourism demand will not only determine whether we travel but also which travel mode we choose, should we decide to travel, and indeed which particular service and carrier we choose. Principal among these features, other than physical transplant, are the following: speed, frequency, comfort, safety, availability, user information, access and price. For each mode is dictated by the weakest element in the system (Cooper et al, 2008). Speed in assessing the value placed, on speed it is important to take account not only of time saved but also of reduced journey time. For most people the ideal is to travel without any perceptible duration of time, not only because it would give up more time for doing other things (including doing nothing) but also because it would remove the many unpleasant aspects of travel that have to be endured when transiting to other places. This mean that we all display a stronger preference for speed and for paying a premium price for speed, than can be explained by the value place on time saved (Lockwood and Medlik, 2003). Transport system performance is often evaluated based on travel speed and distance (Litman, 2008A), some transport system changes intended to increase travel speeds and save travel time tend to reduce other forms of accessibility and increase travel time costs for other users (Victoria Transport Policy Institute, 2011) So, speed is an important feature to consider when t aking about transportation as people are limited in time and since lost time cannot be recovered tourists will rather prefer to have a rapid transportation system while visiting a destination. Frequency is another feature of transport that is to be considered as a good frequency of transport will mean that there is a greater possibility to use transport. But still if a particular route is not profitable there will be an inevitable decrease in the frequency level. Most public service vehicles notably trains, are so large in relation to expected traffic that economic operation can usually be achieved-except on a few high volume routes only by reducing frequencies to levels that are often unacceptable in the marketplace (Lockwood and Medlik, 2003), and for availability. Service availability trends reflect changes in demand, mileage, taxi fares and to a lesser extent transit fares (Consulting, 2000). Therefore frequency and service availability is mainly based on the demand for transportation. Comfort, safety and convenience significantly influence transportation decisions. Consumers choosing a motor vehicle are as likely to decide base on seat comfort and the ease of using navigation systems as on more quantitative factors such as speed, price or fuel efficiency (Litman, 2011). Tourists will travel in a mode of transport in respect to the satisfaction the will get from it and here when taking about comfort, the tourists will somehow benchmark the product available in their own countries so as to choose a mode of transport they will prefer to travel in. Prideaux (2000) argued that if the ability of tourists to travel to preferred destinations is inhibited by inefficiencies in the transport system such as uncompetitive prices or lengthy and uncomfortable journey, the likelihood that they will seek alternative destinations may increase. The quality of information can affect the functional availability and desirability of mobility and accessibility options. For example, motorists need actual and appropriate information on travel routes, roadway conditions (such as when congestion, construction and accidents delay traffic), vehicle services, and the availability and price of parking. Potential transit users need information on transit routes, schedules, fares, comfort factors (such as whether vehicles will have seats or stations will have washrooms), and access to destinations. There are many ways to provide transportation information, including maps, brochures, websites and telephones systems (Litman, 2008A). Also Information centers, welcome centers, and information displays are all ways in which visitors can be informed and guided to use appropriate travel routes and transportation facilities (Petraglia and Weisbrod, 2004). Finally, Price cost are the final essential elements in transport to consider. As the most price-sensitive user of fuel, airlines are again proving to be the first to suffer. In the case of surface transport, the effects are masked by the unfair taxation which so distorts the market that accurate forecasting requires advance knowledge of how politicians are going to tax as well as subsidize the various competing forms of transport (Lockwood and Medlik, 2003). Price is also a very important feature to consider as tourists will look for competitive prices so as to travel. Therefore these are the main features that are considered so as to travel, whether it is a tourist or not. These features are considered by anyone who needs to travel and these features will determine the satisfaction of the customer. Customer satisfaction is the aim of any industry as satisfied customers are more economical to an organisation as they not only generate repeat business but they also recommend the service or product to others. 2.3 Service Quality, Customer Perception and Satisfaction A review of the existing literature indicates a wide variance in the definitions of satisfaction and service quality. The customer could judge the quality a service delivered as good but they may not have had satisfaction from the experience (Randall and Senior, 1996). Crompton and Mackay (1989) acknowledged that satisfaction and service quality are not the same thing, stating, Satisfaction is a psychological outcome emerging from an experience, whereas service quality is concerned with the attributes of the service itself. Parasuraman et al. (1988) agreed but stated that customers use the same criteria to judge both, as they are interrelated. Customer satisfaction can be experienced in diverse situations and interrelated to both goods and services. It is a highly personal assessment that is greatly affected by customer expectations. Satisfaction also is based on the customers experience of both contact with the organization (the moment of truth as it is called in business literature ) and personal outcomes (Mack and Peter, 1989). Hunt (1977) defines satisfaction as a kind of stepping away from an experience and evaluating it. Oliver (1997) notes that satisfaction is the consumers fulfillment response, it is a judgment of a product or service feature, or product or service itself in its ability to provide a pleasurable level of consumption related fulfillment, including levels of under or over fulfillment. Most of service quality writers have considerable difficulty in understanding how customers judge services. One of the original service quality theories is that customers are satisfied when their judgement of the service they have received (perception) equals or exceeds what they expected: Customer Satisfaction Equation Customer Satisfaction (CS) = Perceptions (P) = Expectation (E) Gap analysis theory (Zeithaml et al., 1990) Olivers expectancy disconfirmation (Anderson Fornell, 1994; Olivier 1997) 2.3.1 Customer Expectation Zeithaml et al. (1990) considered that the factors that influence customers formulation of their expectations are word of mouth, personal experience, external communications and past experience. Parasuraman et al. (1988) tried to set customer expectations to context by suggesting that they are what an organisation should offer. So, a customer should expect the product or service to be in a specific standard. C:UsersnathanielDownloadsMGT613_Handouts_(Lecture_1_-_45)_img_55.jpg Figure 3: Basic Perceived Service Quality Model Based on figure 3, a basic perceived service quality model, we can say that the customers will decide whether they is satisfied by matching their expectation of the service to the perception derived from the service experienced. In an attempt to know the customer satisfaction, we must know what is the perception of the customer. 2.3.2 Customer Perception The final part of the customer satisfaction equation is their judgement of the service they have received: their perceptions. Olivier (cited in Taylor, 1997) defined customer perception as a comparison to excellence in service by the customer. It is often considered that customer perceptions of a service are made at the end of a service encounter. Customer perceptions of a service are a complex series of judgement made during and at the end of the experience but are modified by a range of factors including their mood, importance of the encounter. The tourism and leisure industry has to be aware of these elements, especially when designing methods of receiving feedback from customers. Customer satisfaction therefore needs us to think in a holistic manner by considering various factors that can affect it. 2.4 Transportation services in Mauritius. 2.4.1 Air Transportation Mauritius is an island and therefore the main access to the island is the air. The Sir Seewoosagur Ramgoolam International Airport, the airport of Mauritius, consists of one runway which cover a distance of over 3,047 m. The airport is situated in plaisance nearly the south of the island. Air Mauritius is the name of the national airline of the island. Air Mauritius Limited, doing business asà Air Mauritius, is theà flag carrierà ofà Mauritius. The airline is headquartered at the Air Mauritius Centre in Port Louis, Mauritius. The company is the fourth largest carrier inà Sub-Saharan Africa,à and has an important standing in theà European,à African, andà Indian Oceanà region markets; the airline won the 2011 Indian Ocean Leading Airline Prize, making it the seventh year in a row for it to win the award. Out of a five-star ranking, the carriers inflight service is awarded 3 stars by Skytrax. As of July 2011, the Air Mauritius route network consists of 26 destinations inà Africa,à Asia,à Europe, andà Oceania.à Shanghaià became the 26th destination served by the company in early July 2011.à In February 2012, the airline announced the suspension of some non-profitable routes, starting withà Milan,à Melbourne, andà Sydney, effective May 2012. As of April 2012, Air Mauritius hasà codeshare agreementsà with the various following companies, which are the actual operators on the routes specified: Air France, on the Port Louis-Paris-Port Louis route and on severalà Europeanà routes radiating from Paris Emirates, on the Port Louis-DubaÃÆ'à ¯-Port Louis route Malaysia Airlines, on some routes radiating fromà Kuala Lumpur South African Airways, on the Port Louis-Johannesburg-Port Louis route à The Air Mauritius fleet consists of the following equipment, with an average age of 8.8 years: Mauritius has well organised its air transport so as to reach the markets that it has targeted for the tourism industry development. 2.4.2 Maritime Transport The Maritime transport in Mauritius is mainly focused on cargoes and merchandising. Tourism is not really at stake when talking about maritime transportation but still there are passenger ships which go to Reunion Island, Rodrigues and also Agalega Island. So these ships take tourists to the island. Cruise ships are another way where tourists can visit the island. The CRO (Central Statistics Office) published statistics for the year 2011 where it can be noted that total arrivals by sea included 29,900 cruise travellers (around 14,220 tourists, 5,500 excursionists, 330 Mauritian residents and 9,850 crews) aboard 18 cruise ships, which visited our port during the first nine months of 2011. Therefore we can conclude that there are tourists who travel to Mauritius by sea. 2.4.3 Public Transport The public transport in Mauritius consists mainly of the buses, the taxis and the car rentals. The most usual way of transport for Mauritian people is the bus. Bus is a quite easy way of transport in the island. The two main bus companies in Mauritius are the NTC (National Transport Corporation) and the UBS (United Bus services). These two companies deserve almost every regions of the island. Here is a list of all bus companies in Mauritius; NTC National Transport Corporation UBS United Bus Service RHT Rose Hill Transport TBS Triolet Bus Service IO Individual Operators MBT Mauritian Bus Transport Another way of transport and more comfortable is the taxis. A taxià is aà mode of transportà that falls betweenà taxisà andà buses. Theseà vehicles for hireà are typically smaller than buses and usually take passengers on a fixed or semi-fixed route without timetables, but instead departing when all seats are filled. They may stop anywhere to pick up or drop off passengers. Often found inà developing countries,à the vehicles used as share taxis range from four-seat cars to minibuses.à They are often owner operated. Taxis are found in almost every corner of the towns, cities and villages in Mauritius. These taxis are individually owned as there are no taxi companies in Mauritius. In spite of those the taxis are well maintained and very comfortable. Mauritian taxis do not use a taxi meter even if they have it in their taxis, so it is usual here before entering a taxi to decide of the price before. A taxi driver knows usually all the interesting places of the island and therefore can help the tourists to go to a destination. Car rental can also be a good mode of transport in Mauritius. A car rental agency generally rentsà automobilesà for short periods of time (generally ranging from a few hours to a few weeks) for a fee. In Mauritius it has become quite common to rent cars as various car agencies are offering this service now. Below is a list of car rental agencies that are available in Mauritius; Avis Rent Car Ada ABC Car Rental Budget Rent A Car Hertz Easy Drive Rent A Car Europcar National Car Rental In Mauritius these are the main in land public transport that is available for the citizens and also for the tourists. There are also some companies like Mauritour and Summertimes who offer small buses on rent to tourists who come to Mauritius and these buses are mainly for tourists. 2.5 Importance of Public transportation and inland transportation. Khadaroo and Seetanah (2008) link the importance of an effective and accessible transportation system to the length of time any given tourist would stay in one particular area in a destination. They go on to argue that if the ability of a tourist to travel within a preferred destination is hampered by inefficiencies in the transport system, then the tourist, may seek out alternative destinations. In regards to this identification by Khadaroo and Seetanah (2008) transport to and from the airport is viewed as perhaps the most essential element of a tourist city. This linkage plays an important role delivering visitors from the airport to the main area of accommodation, most commonly in the central city. Law (2002) stated that in the absence of such facilities, as with the city of Florence, it can be a deterrent for potential visitors (Law, 2002: 71). Public transport and other inland transportation services, like taxi or rented cars, provide an important role in enhancing accessibility to the various tourism attractions within a city. Meanwhile, Khadaroo and Seetanah (2008) noted that inadequate public transport provision in an urban environment can result in limiting the amount of attractions visited, resulting in negative implications on the potential tourism revenue of a city. This inability to derive maximum benefits with an inefficient transport network was also emphasised by Kaul (1985). Kaul recognised that transport plays an important role in the successful creation and development of new tourist attractions within a city and also regarded transport as a catalyst for many city transformations. Within this recognition was the fact that transport and accessibility were essential for profitable tourist attractions. Leask et al., (2000) also noted the significant connection between tourist attractions and tourism transportation, stating that transport and tourism have a close relationship due to the need for access (Leask et al., 2000: 212). In the past accessibility to attractions has been based primarily on access by private modes, however, by not providing public transport connections, the number of visitors that can reach an attraction are consequently reduced. Gimeno and Vita (2006) also recognised that the easier it is made for tourists to travel between points of interest, the visitor gains more ability to participate in activities, which in turn will generate enhanced tourism revenue for the destination (Gimeno and Vita, 2006: 14). When talking about public transportation and inland transportation, we should also think of who are those tourists who will travel in the p ublic transportation services available in a destination. Lew and Mckercher (2006) noted that tourists have access to four basic modes of transport within a destination personal vehicle, commercial vehicles in organized tours, public transportation and walking. However, conventional public transport system tends to remain majorly inaccessible/ non-preferred mode of transport to tourists for various reasons (Law, 2002): unfamiliarity with the system and the associated risk of entering terra incognita (unknown territory) should they choose the wrong bus route or get off at the wrong stop (Lew and Mckercher, 2006: pp. 408), need for negotiation with the staff in local language and a system design optimized to cater to everyday needs of the local population (Lumsdon, 2006; Thompson Schofield, 2007) Specialised or custom made tourism transport potentially offers a higher level of accessibility to tourists within the destination. While a large segment of such services is covered under tourist packages offered by private operators, there remains a definitive demand for tourism-specific public transport within the destinations. A large segment of tourists choose not to opt for tourist packages due to lack of flexibility in the choice of both tourist spots and lodging, higher costs and a reduced adventure factor. As such intra-destination public transport can become a vital factor in tourists choice of destination and their ability to access their nodes of interest within the destination. These types of tourists will use the transportation services available in the destination to travel by themselves. Therefore in this research I will aim at categorizing the tourists who prefer travelling by them and not to choose a ready-made package for their travelling at the destination. Another important facto
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