Competing Against Low Cost Steel Imports

Competing Against Low Cost Steel Imports Nucor is the second largest steel producer in North America on total production capacity in the end of 2006, with 18 plants. With the year 2006 Nucor was the most profitable steel producer by having the capacity to produce 25 million tons of steel with revenues of $14.8 billion and net profits of $ 1.8 billion. In the late 1960s Nucor established the steel mini-mill industry and since that time, mini-mills have become broadly exist in the large incorporated steel companies out of most niche markets. Nucor in the late 1980s made a brave entry into the flat-rolled steel market, afield of big steel. Nucor follow low-cost leadership strategy, product development by using innovation and technologies, quality systems, strong relationship between employees and productivity, corporate culture and using focus diffrenation, in order to reduce and achieve low costs per ton produced. The market share of Nucor increased by 17% in both years 2005 and 2006. According to the four generic competitive strategies Nucor follow low-coast provider strategy as their strategic direction. They are determined to attain lower overall costs then rivals and tempting to a wide range of consumers. Nucor followed growth strategies which are new acquisitions, new plants construction, continued plant upgrades and cost reduction efforts, and joint ventures. Nucor internally has established a raw materials strategy to control directly and indirectly through global growth with joint ventures, the production of 6 to 7million tons of iron of high quality metals for consumption of its steel mills. Such acquisition is imperative to meet buyer demand for manufactured steel goods. Nucor has a wide array of products and each product must go through a different operations cycle. This is an implication to the efficiency of each unit. Nucor externally has the ability to deliver shipments anywhere in USA. This is a profitable competitive advantage that ensures quick and on-time delivery of products. Nucor ad opts successful marketing and sales strategies. In line with its goals of becoming a global player, it continues to build long-term relationships with contract customers who purchase value added products, 92% of the production of Nucors steel mills was sold to outside customers in 2005-2006. It shows how Nucor is maintaining long- term contracts, and maintaining profitable value-added products. Nucor is known for developing and commercializing new efficient product technologies for the steel manufacturing business. The same enables it to reduce its operating costs and compete effectively in the market. Considering Nucor infrastructure, centralization at the company in the early 2000s has supported the current success and supported the various units. Solid training and employee relation building contributes to the continuous growth. As for services and quality, Nucor focuses on fast delivery and increased customer integrated technologies. Quality control is considered important to ma intain the durability and exact specifications of the manufactured product. Considering political factors, variations amongst countries laws provides favorable and unfavorable circumstances for a large company to do business in that country. Nucor deals with tax policy in USA paying federal, state, and local taxes, affecting its bottom line. Nucor has to understand the taxes of other countries planned for contracts implementation. As for economic factors, exchange rate fluctuations and interest rate changes are considered by Nucor as bases for decisions on expansion, and competition. Markets are attractive for steel companys entrance when the currency is week, and interest rates low. No greater advancement has had more impact on the steel industry than the recent technological improvements. While many industries are outsourcing much of their manufacturing, Nucor has been able to undertake the opposite approach and expand in the domestic market. Technology increases efficiency of fac tories, decreases inventory, and enhances product quality. The efficient mini-mill is an example of this. Strategic Issue Given the internal and external factors, that steel situations in the world had been improved by 2005-2006. The prices were higher in the U.S by 50% in 2000 as well as Nucors Sales. However foreign steel companies, dumping in home domestic market and U.S market below market prices that leads to over capacity and more supply than demand. Inside US and Outside US market. The Demand increased by 6% should Nucor continue focusing on the U.S steel market or begin to expand into another foreign markets? Or should they have to deal with budding volume of low priced foreign imports in the US market and how to compete with foreign steel producers? Do they need to expand the capacity of the company steel-making and start building new plants, new acquisitions, and new joint ventures? External Environment External factors include those influences cut side the industry in the macroeconomic that should be considered in shaping the companys strategies in long-term direction are legislative factors, economic, socioeconomic, and technological factors. Political and Legislative Businesses are heavily regulated, from state to federal to international. These regulations challenge the ease of achieving profit margins. A business must deal with the local laws and regulations of another business when attempting to compete in a foreign territory. For Nucor Corporation, the growing international competition requires addressing and dealing with various types of laws, mainly taxation. Nucor deals heavily with the tax policy and regulations in the United States paying federal, state, and local taxes. Each imposes heavy effects on their bottom line. Taxes however do not always negatively impact a business. Many international steel companies were selling their products at below market cost to undercut domestic competition. Taxes imposed protect the domestic industry. The same is important when competition is high. Nucor is a large company that is subject to international trade agreements. It is financially essential for a company to understand the costs associated to all regulations and tariffs on import and export processes, especially that competition ad globalization are required to maintain profits in the future. Economic factors As Nucors strategy has always been to become a market leader, much of its growth comes from international markets, especially developing ones. Thus, it is always exposed to exchange rate fluctuations. Markets become attractive when their currency is weak. This was the situation of the steel industry during the economic downturn in 2001. When markets become attractive due to weak currency, the demand for steel would increase and consequently the supply to meet the increasing demand. To finance the large expenditures, loans are very common. As interest rates decrease, corporate loans increase to create an expansionary economy. The same will create positive effects on corporate spending of major steel buyers, and consequently suppliers. Hence, steel demand and supply would increase. Socioeconomic factor Steel industry operates on a business to business model. The same allows for greater efficiency and protects from the risk impact of negative social factors. These factors include consumer behavior, fashions, geographic location, consumer thoughts, ectA company like Nucor must understand the sub-cultures of each market segment where it exists, and concentrate on the most profitable. Nucor considers expansion through acquisition. This carries along the risk of mixing two distinct cultures. Nucor must be able to preserve and embrace new knowledge employees, skilled labor, and other valuable assets. Moreover, the existing individual cultures can be a source of risk, so assuring adequate safety environment should be a priority. Nucor differentiates itself by high wages, incentive based pay, and a flat organization. Each of these has a positive impact on the existing Nucor organizational structure. The existing challenge and risk would be to create equilibrium between preserving a positive culture, and an increased profit strategy of which lower wages is somehow a must. Nucor Corporation recognizes its role in protecting the environment. It gives attention to the environment of the communities in which it operates and recognizes its importance to the employees. Protecting the environment is critical to its operations and long-term success. To illustrate, Environmental compliance is a priority for Nucor management equal with all other business functions. Technological factors While many competitors within the steel industry are outsourcing many of their manufacturing due to increased technology, Nucor is able to take the opposite approach and expand in domestic market. Technology increases efficiency, decreases inventory, and improves the product quality. Nucor, for example was able through the new technology used to efficiently use the small factory production mini mill to increase its capacity utilization. The mini-mill simplifies the process when compared to the more tradition integrated mill. It cuts many corners in the production cycle and also uses larger percentage of scrap metal. This in return reduced the amount of pollution from making steel significantly by eliminating the several elements of the old blast furnace process. Technology also provides greater enhancement for engineering and sales. The products have detailed computerized models with test statistics, and efficiency attributes. The sales department is able to directly deal with customers through the internet. Transactions are seamless and process quickly. Technology has enhanced the steel industry processes but it has its draw backs that need to be considered. For example, computer failure, database errors, and any simple user error can affect the business. Having specialists and IT managers will have its positive impact on controlling these risks. Industry Analysis There have been two major factors influencing the steel industry- consolidation of global companies, and revolutionary technological changes among competitors affecting prices, production, and consumer satisfaction. National boundaries have melted to encompass an ever increasing world market. Since, the beginning of the 21st century, the industry has been hovering around 75% capacity utilization, a level too low for many companies, thus, forcing them to globally consolidate. Examples of these consolidations are the three European companies who merged to form the worlds largest steel producer and the two Japanese companies who did the same to form the second-largest steel producer. Driving Forces The defining characteristics of the industry are increasing globalization of the industry, and technological changes. As for globalization, it is a driving force as it will have an effect on the overall industry growth. When considered, globalization will pave the way for consolidation between companies allowing them to be strong players in the industry where their success or failure will have an impact on the overall industry growth. Technological changes can have great impact on the industry. When more improved technologies are used, production and prices will be affecting the industry growth. The global steel market grew by 8.2% in 2007 to reach a value of $529.7 billion. In 2012, the global steel market is forecast to have a value of $759.1 billion, an increase of 43.3% from 2007. Key Success Factors The Key success factors (or KSFs) are competitive factors most affecting every industry members ability to prosper. KSFs include; Necessary resources, competencies, and capabilities (organizational style) Competitive capabilities Expertise in a particular technology Scale economies or experience curve benefits Strong network of wholesale distributors, and suppliers Nucor was established in 1966 and continues to grow strongly according to a number of key success factors and strategic organizational strengths. The companys organizational style is remarkable and features a number of factors that contribute to Nucors success. First, the company employs a decentralized business style. In 1966, Iverson assumed the role of president to be decentralized manner has been used and been very successful. A decentralized business style distributes the administrative responsibilities or powers among several authorities rather than a large number (Decentralization). This style has permitted Nucor to empower their managers and employees. By Improving the level of empowerment allows each division manger control over day-to-day decisions and transactions that will increase profitability. Nucors decentralized business style also helps the Co. to be lean. Lean manufacturing incorporates the production of goods using less waste, less human effort, manufacturing, too ls, inventory, and less time. Equivalent to their lean business style, Nucor is continually seeking for improvement. Stable aim to decrease production cost is always a priority and ultimately helps to lower costs of steel to buyers. Moreover, a focus on dealing with employees helps in reducing employee turnover and increase productivity. Safety is an important consideration for Nucor and is consistently monitored and improved. Employee surveys are conducted every 3 years which helps to give an insight on employee attitudes and concerns. Management then compares the surveys across plants and divisions to control potential problems areas and increase employee satisfaction. Finally, Nucor focuses on creating strong relationships with outside parties. This enables it to establish long-term sustainability with these parties. Furthermore, structure and supply cost will often be decreased which allows for lower costs for buyers. Strong relationships established ensure long-term sustainability and lowered prices for Nucor. The booming business structure of Nucor along with the management styles implanted has allowed the Co. to become a leader in the industry. The Company has established a reputable brand and has created brand awareness both domestically and internationally. It currently has a significant market share of the U.S. market and is budding as a global leader in tough industry. Moreover, their increase in size has helped them increase production capacity. Last but not least, Nucor has a strong technological focus and is works at all times to boost manufacturing and production pace. Innovation also is always considered and helps the company remain a leader. Being the largest steel manufacturer, Nucor remains a profitable company in one of the most cyclical industries in the economy. Nucor enjoys this success for several reasons, employee relations, quality, productivity, and aggressive focus on innovation and technical excellence. Nucors strategy low cost providing, they know they are selling a commodity for which the competitive edge in the industry is lowering prices through innovation and productivity. Firms in other Industries Offering Substitute ProductsPorters five forces analysis Suppliers of Raw Materials, Parts, Components, or Other Resource Inputs Rivalry among competing Sellers Competitive pressures created by the jockeying of rival sellers for better market position and competitive advantage Buyers Potential New Entrants They five competitive forces affecting industries attractiveness are: Competitive rivalry: (High Threat) The global competition in the steel industry faces Nucor and the vast array of competitors that fill the industry. Intense competition among competitors in the domestic market of Nucor causes a cyclical effect within the industry. Each competitor strives to win bids of contracts, causing a stiff price war in the market. As price is the main factor for differentiation among competitors and it is the bases of the industry, the company with the lowest fixed costs will survive the longer, and be the most profitable. Nucors use of both base pay and incentive pay ensure output is relative to pay and, therefore, decreases its fixed costs. The business model differentiation is also primary means of competition. Nucor has a decentralized structure with control being at the factory level. This advantage allows for focused decision making, and efficient use of profits. Extremely high exit barriers are a major risk to competitive competition. During times of economic downturn or overproduction, inefficiencies are weeded out. The United States boasts one of the strongest protections for businesses with its bankruptcy laws to ensure they can make it through these tough times. Counter this though, the U.S. also has some of the toughest laws against closing inefficient plants. Extremely high exit barriers are a major risk to competitive competition. Competition from Substitutes: (Low to moderate Threat) This threat is considered low as there are few substitutes for the use of steel. From auto manufacturing, to structural supports, to fasteners, there are relatively few products available with the strength, durability, and cost efficiencies of steel. The largest alternative to steel would be use of another material. Plastics are on the top of the list, but have not found the same durability as steel. Wood may have aesthetic appeal but cannot combat with steels robustness. Alternatives increase market presence at times of economic downturn and times of increase in steel material cost. To hedge this threat many manufacturers maintain inventories of steel reserves. Large companies also trade steel futures to ensure stability of price and guaranteed supply for a future specified time. The goal is to maintain low costs and market share during times of economic fluctuation. Bargaining Power of Buyers: (High Threat) The buyers impose the greatest; they are the bases for price competition by influencing the demand. The ultimate goal of the buyer is to get the best quality product at the lowest price. The ultimate goal of the seller (Nucor) is to get most attainable profit for the least cost. Because the market is filled with numerous suppliers and taking into account the two different goals of suppliers and buyers, the steel industry is commonly a buyers market. Bargaining power of Suppliers: (High to moderate Threat) The supply of raw materials, steel shreds, iron ore, or recycled steel can have a great effect on the cost strategy. Most of the steel used for manufacturing in US is imported. Due to the difficulty in suppliers ability to constantly meet the demands of the companies such as Nucor, joint ventures between suppliers and manufacturers are established. The same ensures low costs for manufacturers. Acquisition of the supplier might also be undertaken by the manufacturer. Also, the power of unions labor and unionized labor, could affect the labor costs for steel produces in placing weak competitive force and on cost disadvantage vis-à  -vis firms with nonunion labor. The Threat of Entry: (Moderately Strong Threat) The main determinate for an entry into an industry is the costs associated. Barriers to entry have increased due to merging and globalization growing of many competitors. Economies of scale and capital requirements are the greatest barriers I the steel industry. Larger quantity orders of raw materials are usually discounted. Higher production volumes directly discount the associated costs. During times of strong growth, such as the 1960s-1980, economies of scale are very good. During stagnation or recession, these approaches often cause diseconomies due to under utilization of capacity. Product differentiation is also a major barrier to entry. Steel is not sold on its overall difference, but more commonly on price. Many manufacturers utilize the same technologies and process. Price wars are seen in minimization of fixed costs as stated earlier. Directly with this, there are few switching costs from one manufacturer to another. Little brand loyalty is recognized in an industry that does not appeal to consumer loyalty or brand image. Entrants must find a way to compete based on lower costs. Access to raw materials is additionally a barrier. Many times raw materials must be bought in large quantities (economies of scale). The cost disadvantages associated with small material purchases can be huge and directly increase overall manufacturing costs; this make competition challenging in a market where margins are already slim. Government policy is not a major threat to entry on the domestic level, but at the international level the barriers are enormous. Well established relationships by large steel manufactures with governments allow for easy creation of contracts in a foreign territory. The creation of these contacts takes time, executive work hours, and vast amounts of money. As most steel manufacturers must be globally competitive to maintain profits, government policy is threatening entry barrier. At first glance it may seem the mature steel industry would not be very attractive. This may be true to a new entry on a small scale, but with the advance of globalization the steel industry is again becoming very attractive. Industry Profile and Attractiveness The Industry position and competitive structure future for a low-cost steel producer such as Nucor is attractive due to the good shape of their financial situation to gain sales and market share however the industry market environment maybe un attractive to some rivals but for some other rivals it may indicate some opportunities. The demand for steel globally has been rising strongly in recent years, and this is likely to continue. The industry has become attractive for new entrants from the international market since these companies are not burdened by union contracts and since governments may provide special incentives in order to help them establish a customer base in steel, which can help in forming an important part of a nations economic infrastructure. Although the U.S is already dumped with outsider steel products, it is still considered to be a reliable and potential market for other global companies. As summary of the Nucor case gives many insights into the company and the industry. In general, the steel industry is a very strong industry to compete in successfully. The question here is the steel industry an attractive one? The answer would yes, if the entering company is already in the industry and well set up and highly regarded. Moreover, its very important that the company is in a position to acquire other companies and/or form joint ventures. Nucor currently has done an amazing job moving itself up from near bankruptcy to an industry leader. Major numbers of challenges have been met and overcome throughout the companys life. However, this does not mean that there will not be more major challenges for Nucor. Nucor is nowadays is facing growing competition from both domestic and international rivalries. Its critical that Nucor continues to grow and increase global market share. Current management must continue to specialize in Nucors core product and capitalize on a proven suc cessful organizational structure. Can Nucor continue to succeed as a global steel company into the future? This is the main concern. Nucor is capable of continuing its entrepreneurial spirit as it grows larger because its marketing and management techniques. Since Nucor has been an innovative and risk-taking company, their profits will continue to expand. Nucor has embodied techniques that have been profitable to the company. An example of these techniques is the fact that Nucor managers would set standards for quality and output for groups of 25 to 30 employees and reward them with weekly bonuses. By emphasizing quality and efficiency in employees and then rewarding them for it, Nucor only increases its own profits. Company Situation Nucor Situation Introduction Nucor deals with key specific issues in the steel industry including the fast growth of steel producers in the world reflecting as an increased capacity in steel production creating prices war, and the competition in an industry where technology usage has been a way for saving costs. Despite their specialization into steel, Nucor Corp. has become a benchmark for both the U.S. steel industry and U.S. industry in general. Nucor is one of the fastest growing and most efficient steel producers in the world. Despite the declining demand for steel, Nucors growth has been phenomenal, from pouring its first batch of steel in the 1960s to support in-house operations; the company has become one of the top five producers of steel in the U.S. Nucor has repeatedly achieved technological feats other steel producers thought impossible. Their hourly pay is among the lowest in the industry, yet they have the highest productivity per worker of any steel producer in the U.S. But can it continue to do so? Financial Analysis According to Nucor Corporation Financial Ratios data for 2005 2006 provided in Table 2 Profitability  [1]  : Profitability ratios are used to assess a businesss ability to generate earnings as compared to its expenses and other relevant costs incurred during a specific period of time. For most of these ratios, having a higher value relative to a competitors ratio or the same ratio from a previous period is indicative that the company is doing well. Gross profit margin FYE  [2]  12/06 increased by 14% reflecting an increase in sales for 2006. Liquidity ratios remained almost the same reflecting the continuous ability of the company to meet its obligations and invest further in the new technologies adoption strategy. Activity  [3]  : Are ratios that measure a firms ability to convert different accounts within their balance sheets into cash or sales Inventory turnover and total asset turnover were positive and closely in-line with past results. Nucor maintains the ability to draw class investors with its relatively strong financial performance, though down a bit from previous years. The increase in activity ratios is affected by the increase in sales FYE 12/06. Leverage  [4]  : Ratios used to calculate the financial leverage of a company to get an idea of the companys methods of financing or to measure its ability to meet financial obligations. There are several different ratios, but the main factors looked at include debt, equity, assets and interest expenses. Leverage ratios decreased by 1% FYE12/06 as compared to year 2005. The same reflects the ability of the company to meet its obligations and the reduction in reliance on leverage to meet its strategic plans. As globalization and acquisition is the focus, the leverage ratios are important. Debt has remained relatively low as compared to assets and equity, 23% and 44%respectively. Liquidity  [5]  : Are ratios used to determine a companys ability to pay off its short-terms debts obligations. Generally, the higher the value of the ratio, the larger the margin of safety that the company possesses to cover short-term debts. The current strategies may require short-term loans to finance acquisition. With these ratio levels, Nucor is in the position to shop for good interest rates. Total cash reserves for 2007 were roughly $1.4Billion, which will directly aid a globalization and expansionistic approach. As conclusion, at the end of year 2006 Nucor was in very good shape financially and the financial performance is strong for the 2004-2006. The date in table 1 shows how Nucor increased tons sold during the year 2000- 20006 with increasing in sales and market share of their products. SOWT Analysis In this part which is simply but powerful tool for sizing up a companys resource strengths and competitive efficiencies, its market opportunities, and the external threats to Nucor future well-being of Nucor Table 2. Nucors strengths Technology Innovation: Is one of Nucors key strengths due to the amount of resources they can save because of it. Nucor also has established plants with low pollution levels. The ability for Nucor to use this to its advantage allows them to be more competitive with the market by substantially lowering their production cost. It also allows them to be environmentally friendly, which is a huge worldwide social concern these days. Continuous Innovations allows Nucor to hold its technological edge on the competition. Nucor is always moving and always improving its business cycle through the use of continuing innovation. Nucor is an industry leader when it comes to innovation. Strong market position: Nucor Corporation has many different competencies that allow it to hold a strong position in the steel industry. These include its adopted new technologies, successful management structure, strong established market relations, and the long successful existence in the market. The company has marvelous industry position and positive financial results for the past over 40 years. Corporate Philosophy: One of Nucors strategic strengths is its philosophy of empowering its workers and reducing the inefficient layers that plagues corporate. Company structure is decentralized with minimal management layers. Cost control: Nucor focuses on cost control. To be competitive in a market with little product differentiation, price is the main competitive factor. One of Nucors core competencies is that its expertise in keeping costs low. The same is maintained by adopting technological innovation that helps increase production at lower costs. Nucors Weaknesses A weakness is something a firm lacks, does poorly, or a condition placing it at a disadvantage in the marketplace and these are;  [6]   Missing capabilities in key areas leading to dependence on a volatile market location: Nucor faces some significant weaknesses with its location. Nucor has plants, all of which are located within the US. The problem is that Nucor cannot effectively serve international markets as good as competitors having plants worldwide. The shipping of steel to overseas countries is extremely expensive. Nucor is not in a great market position. Customers can go some place closer to buy their steel essentially knocking off a large shipping cost. Nucor also does not give deals on quantities purchased. Nucors most significant weakness lies with its domestic market. With the US Market being its primary customer base, Nucor is not able to offset losses because of a diversified location worldwide. Nucor is currently in a Market where growth is declining significantly. Deficiencies in competitively important physical, organizational, or intangible assets through high expansion and technology costs: The expansion policy accompanied with dependency on scrap steel and energy prices and the vol

Southwest Internal Analysis

Southwest Airlines Internal Analysis Introduction This internal business analysis is on Southwest Airlines, which was founded in 1967 by Rollin King and Herb Kelleher. The main focus for Southwest Airlines was to provide low cost flights for their customers, and also have exceptional customer satisfaction. Southwest is a leading airline company that continues to do well in an industry that has been historically challenging. For instance, in the span of two years (2005-2007) five major airlines have filed for bankruptcy.The challenges are great in the airline industry, because competitors are trying to imitate the â€Å"low-cost† offering of Southwest. Many companies have tried to do what Southwest has done, and many have failed to stay in business. Surprisingly, many of those companies were started by ex-employees of Southwest. Southwest currently has a profitability record for the past thirty six years, which is spectacular in such a challenging industry. Herb Kelleher has be en replaced by Gary C. Kelly, as the president when he resigned in May of 2008.Southwest is in the process of expanding the locations they serve so that they can increase market share, and also find ways to cut costs without losing their quality. In order for southwest to continue their consecutive financial success there is a necessity for excellence in the execution process of their strategy. Business Level Strategy The business level strategy (BLS) that Southwest focuses on is Cost Leadership. They are the leading airline in the United States for providing low-cost fares to their broad customer base.Southwest has found innovative ways to reduce cost within their cost structure enabling them to offer lower fares than competitors and still maintain a profit. One way that has helped Southwest save time and money is their standardization of their airline fleet. This tactic is known as the â€Å"one-model-fleet† by the airline. Having a single airplane model in a fleet has allo wed Southwest to â€Å"lower inventory, record keeping and maintenance costs, and it minimizes the number of technical manuals, tools and spare parts. † Another methodology that has layed an important role in their thirty six years of profitability is their fuel hedging practices they’ve practiced since the late nineties. This tactic has saved the company millions of dollars, and in 2007 alone has saved the company 727 million dollars. Another cost saving measure that Southwest has implemented is the use of blended winglets on all of their 737-700’s models. This change is supposed to improve performance by extending the airplanes range, saving fuel, and lowering engine maintenance costs and reducing takeoff noise. More recently, Southwest began to use EcoPower engine wash services.This is going to allow Southwest to save an estimated $20 million dollars in fuel costs. All of these tactics by Southwest are designed to save on expenses that they incur doing busine ss. Many airlines cut cost by laying off employees, but Southwest has established a â€Å"no layoff policy† that is currently still in effect. This shows how committed the company is to their employees, and how they are an integral part of their business. Resources Southwest has plenty of resources that have contributed to their success as an airline company. Their intangible resources have created their competitive advantage in relation to their competitors.The reason for that is the simple fact that their tangible resources are not difficult to replicate. It’s the technique that Southwest uses to connect their resources that has enabled them to be successful in the airline industry. Their tangible and intangible resources are as follows: Tangible: The main tangible resources that Southwest has are its training center, employees, headquarter facility, acquisitions, partnerships, take off and landing spots, frequent flyer reward program, self-service check-in kiosks, a nd their fleet aircrafts.In 1986, Southwest opened a multi-million dollar training center for their flight crews. As all businesses, employees are necessary if you’re conducting business on a large scale. The connection between Southwest and its customers are their employees, which makes the employees role that much more important. Although, the employees are tangible, the culture of the employees is intangible aspect that has been difficult for competitors to imitate. The training center for their employees was an investment Southwest made early on knowing its importance to the long term success for the company.The headquarters for Southwest is another tangible resource, which is located in Dallas. The headquarter similar to many other companies allow top management to effectively communicate the organizational goals of the company. Acquisitions and partnerships that Southwest has completed throughout their duration allow the company to expand their services to more than 64 cities in the United States, and obtain more take-off and landing spots. The frequent flyer program is another tangible resource that Southwest possesses, but interestingly has not had a major impact on Southwest’s bottom line.With the help of IBM, Southwest was able to offer about 250 self-service check-in kiosks. The reason for having the kiosks for their customers was to reduce the amount of time the customers spend in line and to improve the airport experience. In the very beginning, Southwest only had 3 Boeings in their lineup but now they have more than 243 aircrafts in their lineup. Intangible: The main intangible resources that Southwest has are its brand, unique culture, and reputation. Southwest has a brand that is known widely when referencing the airplane industry.The brand that they represent is one that is reliable, convenient, employee centered, customer oriented, and at the same time providing a low cost alternative to their customers. This has helped dramatic ally in their formation of their culture, because even in the beginning their main focus has been on its employees. Southwest has a culture that is unmatched in the industry, and one of the main reasons they have been wildly successful in a challenging environment. Early on Southwest made the decision to sell one of their airplanes rather than laying off their employees to show their loyalty to its employees.All of these factors have enabled the company to maintain a reputation that is respected among the industry. The reputation that they have has enabled them to reap the benefits of being recognized as a leader in the industry. For example, Southwest has earned several Triple Crown awards, which is an award for having the best on-time record, best baggage handling, and fewest customer complaints. Outcomes from Combinations of the Criteria for Sustainable Competitive Advantage: Is the Resource of Capability Valuable? | Is the Resource or Capability Rare? | Is the Resource or Capabi lity Costly to imitate? Is the Resource or Capability Nonsubstitutable? | Competitive Consequences| Performance Implications| No| No| No| No| Competitive disadvantage| Below-average returns| Yes| No| No| Yes/No| Competitive parity| Average returns| Yes| Yes| No| Yes/No| Temporary competitive advantage| Average returns to above-average returns| Yes| Yes| Yes| Yes/No| Sustainable competitive advantage| Above-average returns| Result from the chart: Capabilities The capabilities of Southwest Airlines are the origin of the firm’s ability to create a competitive advantage over other airlines in industry.Southwest focuses on three main functional areas within the organization, which are management, human resources, and marketing. Management The management capabilities of Southwest Airlines are the main reason why the company has been so profitable, utilizing an effective low cost organizational structure throughout the entirety of the company. Using only one type of plane fleet, the Boeing 737 series, which allows minimizing inventory and resources needed for training, maintenance, parts, and is also a very reliable plane.This helps in the quick turnaround times at the gates, which keeps more planes in the air at any given point in time. In the 1990’s Southwest employed an aggressive fuel hedging tactic saving the company millions of dollars in hard times, while still being able to provide low ticket prices to consumers. Another important area management focuses on is the management of human resources that emphasis both employees and customer alike. Human Resources Focusing on customer service, Southwest Airlines opened a multi-million dollar training facility for its flight crews in 1986.The heart of this training facility is to promote human capitol and share knowledge throughout company. By focusing first on their own employees, southwest can ensure that the employees will then focus on the customer. Through motivation and empowerment in the training of its employees, Southwest can provide customers a comfortable experience while retaining employees and making it hard for competitors imitate. This is proven with its Triple Crown Award for best on-time record, best baggage handling, and least customer complaints. MarketingOne way to promote value and differentiate itself from competitors is Southwest’s humorous advertisements. Exercising the LUV ticker symbol, Southwest promotes its customer driven services and prices. While in the late 1980’s Southwest started a rewards program that has retained loyal customers, but has not been proven successful for leisure travelers. With the low cost abilities, timeliness flights, rewards, and focus on the customer, Southwest Airlines has carried out an exceptional marketing strategy. Core Competencies Employee LoyaltyWithin the first two years of operation Southwest suffered huge losses and had to make some major financial decisions. These decisions lead to the selling off an aircraft and keep all of the employees created the â€Å"no lay off policy†. Then in 1973 Southwest was one of the first companies to incorporate profit sharing where employees owned at least 8% of the company stock. This leads to higher employee satisfaction, retention rate, and increases the want for the company to do well, this way the employees focus more on creating value for the customer.Management Skills Southwest Airlines management has tailored numerous sets of activities around a low cost structure creating value for the customer. With short domestic, point-to-point flights, no additional in flight features and no seat reservations allows for a short turnaround time, which makes for less crowded airports and maximizes flight time. Along with fuel hedging and low maintenance costs, the design of these best-fit activities show that the excellent management skills are a core competency that creates a competitive advantage over other airlines.Conclusion Through the inte rtwining of its resources, Southwest Airlines has created a unique set of capabilities and competencies that has continuously allowed successful implementation of its business level strategy. With a focus on low-cost leadership and customer service, Southwest Airlines creates value with reliable on-time departures and a unique company culture. This provides a sustainable competitive advantage that is hard for competitors to imitate and provides a string foundation for Southwest Airlines’ future success.

Cinematography in Lawrence of Arabia Essay

Said to be one of the greatest films of all time, Lawrence of Arabia, a 222-minute movie directed by David Lean released in1962, achieved numerous accolades from popular award-giving bodies, among them the award for Best Cinematography. Through its cinematography, the desert was transformed into a character and major motivator of the film’s narrative, which was achieved through numerous ways. In the initial portions of the film, the desert was featured as calm, quiet, vast, mysterious and beautiful, which was why Lawrence expressed much excitement towards his assignment as an English army soldier. The extraordinary shots of the desert sunrise, and the extreme long shots of Lawrence (and his army) with the desert as its backdrop were breathtaking as they seemed like still photos from postcards. Pan shots from left to right denoted their journey, which were all skillfully captured on film. As the movie further unfolds, however, the desert assumes a different character as it shows its less appealing side – how it can be harsh, ruthless and merciless, without giving much preference to who or what it desires to take. This is shown during the times when Lawrence and the soldiers are having difficulties crossing the desert without water supply, and when one of Lawrence’s helpers is taken under a quicksand. Despite the bleakness of the circumstances, the sequences were still deftly shot and presented to the viewer. And then again, it changes further later on when it becomes the venue for bloodshed, as Lawrence stages wars and succeeds in conquering more territories. In some way, the desert seems like the love interest of the main character in the film because quite noticeably, there are no female characters in the film’s entirety. It was also expressed by Lawrence himself that he liked the desert because it was clean. Somehow, it seemed like Lawrence saw the desert as directly contrasting his character because although his actions may have been glorified by the Arabs, Lawrence knew that he was just a pawn in the power play of those who were in authority. The desert provided Lawrence a way to be a hero for others, which is the rationale for his decisions to go into battle.

Conflict in Syria Essay

Conflict in Syria Essay Conflict in Syria Essay Conflict in Syria In 2011, protests spread throughout the country of Syria to bring down the president of Syria, Bashar al-Assad and started a civil war. The U.S. is considering using force in Syria because Bashar al-Assad used chemical weapons against protesters, which is an international law to not use any chemical weapons, and killed more than one hundred-thousand Syrians. Should the U.S. get involved with Syria? The best option the U.S. should take towards Syria is to work with the International Community to end the civil war. This option is best because we are not putting ourselves in harm’s way, it is best to hear others’ options with this kind of situation instead of going ahead, and using more violence is definitely not the answer to stopping this conflict. Cooperating with the International Community would be the best way to end the war because we will not harm ourselves in any ways possible. We are in debt already so we would not be able to afford another war. We also do not want to lose any soldiers or hurt any innocent bystanders. The U.S. should try to compromise with other countries for a much better peaceful solution. Working with others is the best way to end this conflict is because we need a solution that best fits for everybody. The U.S. acting alone will lead not only resentment towards the country, but will hurt the ability to influence a diplomatic solution in Syria. The U.S. should wait until other countries authorize similar military action or, as said before, come up with a peaceful solution that fits for everybody. The U.S. should be a part of the solution, not the conflict. Using force on this matter will not help with anything but will harm not just ourselves but others also.

Love between Heathcliff and Catherine Earnshaw Essays

Love between Heathcliff and Catherine Earnshaw Essays Love between Heathcliff and Catherine Earnshaw Paper Love between Heathcliff and Catherine Earnshaw Paper There was only doom and gloom in Cathy and Heathcliffs relationship soon after Cathy returned from Thushcross Grange, things werent going too well. Catherine started spending much more time with Edgar and this was observable from Heathcliffs calendar in which he marked off the days Cathy spent with him and also the days she spent with Edgar, the ration would have been 5:25, five days she had spent with Heathcliff and twenty-five with Edgar. One stormy night, Catherine had just come back from the grange, she seemed very happy but the storm was a sign that something disastrous had to arise. She asked Nelly if she would keep a secret for her, the secret was Edgar had proposed to Cathy and she had accepted the proposal. Nelly saw someone approaching in the corridor and realised it was Heathcliff who was listening to their conversation in the dark, Catherine on the contrary had no clue whatsoever about his arrival. Nelly then asked Cathy why she wants to marry Edgar; she said she loves everything about him, and that she would be the finest and richest woman in the area. Nelly acknowledged that all these reasons werent good enough and that Heathcliff would friend, love, and all that he has. Cathy remembered her dream in which she was miserable in heaven and wanted to return to the heights, and realises Ive no more business to marry Edgar Linton than I have to be in heaven. Right after that Cathy says It would degrade me to marry Heathcliff now. Heathcliff leaves right after listening to this. She goes on comparing Heathcliff to Edgar without knowing Heathcliff had gone forever by saying, Whatever our souls are made of, his and mine are the same, and Lintons is as different as moonbeam from lightning or frost from fire. Social class plays a huge role in this separation, Cathy said it would degrade her to marry Heathcliff because he was a servant and they werent on the same level, this also links back to Hindleys revenge as he was the one who made Heathcliff a servant. Family and destiny also play a major role as Nelly knew Heathcliff was eavesdropping but never told Cathy, also Heathcliff only heard Cathy talking about the degradation not staying to hear her say, I am Heathcliff. This is where faith interwines in their love. Catherine becomes very ill after losing her love and waits for Heathcliff for another two and a half years, but with no luck she finally marries Edgar, destiny also plays a role here as Heathcliff returns after three years, 3 months after Cathy gets married to Edgar. Cathy was flabbergasted when she saw Heathcliff on the door of the grange and invited him in, she also told Edgar to be friends with him as he was now a fine rich gentleman, Edgar wasnt half as happy as Cathy was upon Heathcliffs arrival. Cathy discovered Heathcliff was now the owner of Wuthering Heights as Hindley had no money after gambling continuously. Cathy was starting to become selfish as she wanted Heathcliff to be her friend and Edgar to be her husband at the same time, something which neither of the two wanted. Between all this Heathcliff turned into Isabellas crush, and Isabella soon started to love Heathcliff. He took advantage of this and got his revenge with Edgar by marrying his sister even though Cathy had told her how cruel and wicked Heathcliff is. Isabella soon realised this when Heathcliff said your wealth is now mine and you are going to wish you never married me. This separation was due to Heathcliff wanting to get revenge on Edgar. Cathy was soon seriously ill, and in the 1800s a minor cold could result in a persons death. After a few days in bed Cathys condition worsened, Heathcliff arrived at the grange right after he received the news that Cathy is ill, they were both in tears and angry with each other, but they both forgave each other, Heathcliff had to go out when Edgar arrived but told Cathy I will see you again. He didnt know this was their last meeting, Cathy died a few hours after giving birth to a baby girl, Catherine Linton. This was their final separation, a physical one. Destiny, family, hatred, revenge, social class and death were a few of the main reasons for the soul mates separation along with many people mainly from the family. Wuthering Heights was an amazing story told by Emile Bronte, the two lovers Catherine and Heathcliff finally got together after Heathcilff died in her memories. Alas.

Reinforcement of Dental Composites by Electrospun Nanofibers Research Proposal

Reinforcement of Dental Composites by Electrospun Nanofibers - Research Proposal Example Our work draws support from the background researches concerned with the application of nanoscaled reinforcing materials and organic-inorganic hybrid nanocomposites synthesized by conventional soft chemistry procedures on various innovative industrial products. The principal look out of the following investigation is also based on the previous studies conducted to understand the intricate mechanisms behind the phenomenon of dissipation of energy that is hypothesized to be one of the definitive factors for hiking the index of fracture toughness in solid composites. (Composites Science and Technology, 2008) Past researches show that this energy dissipating phenomenon implicating increase in the fracture toughness is far more definitive and effect enticing for nanocomposites compared to ordinary composites having micron scaled fibers. In the following investigation we attempt to understand and interpret the reasons associated with mimicking such kind of mechanical strength and structure d toughness after reinforcing the resinous polyacrylate matrices of the dental composites with hyperbranched polymeric nanofibers. ... (Saudi Dental Journal, 2006) Though such research is always critical and is undoubtedly clouded by several other unaccountable factors, like, the inherent clinical design of the prosthesis, deformations of the dental base, climatic wear and tear of the metal supports, conditions leading to accidental damages along with the gender, age and total span of usage of the wearer; the plausible causes arising from the discrepancies in the mechanical index of the denture material itself, was the only object of our interest for pursuing further investigations along relevant lines. Therefore, it is undoubtedly clear that the primary objective of this research is to record and understand the effects of the covalently bonded nanoscaled organic reinforcements on the performance and durability index of the recently used dental composites. By designing composites of polyacrylate resin matrices modified with commercial dendritic polymers, like polyesteramide and polyester, we need to create a variati on from the previous investigations by incorporating electrospun polyamide nanofibers into the system and test their effect on the overall mechanical strength of these composites. EXECUTIVE SUMMARY: The nanofibers will be synthesized by electrospinning three different polymers that are Poly Vinyl Alcohol (PVOH), Poly-L-Lactide Acid (PLLA) and Nylon 6 (Polycaprolactam or Polyamide or PA6) and they are to be used with the Hybrane modified acrylate resin matrix of the composites at different weight percents and particle diameters. The compressive strength, diametric tensile strength, linear shrinkage index and flexural strength will be measured at different concentrations and diameters. The morphology of the

A Raisin in the Sun Essay Example | Topics and Well Written Essays - 1250 words

A Raisin in the Sun - Essay Example This causes disagreements between the family members as everyone has different ideas on how the money should be used. They rent a house particularly in a white neighborhood, but they are not very welcome. This is evident by the way Karl Lindner the white neighborhood’s representative asks to buy them out with a very generous offer. At the end of the play, the family leaves with their pride of being black and refuse the money offered by the white people. This paper therefore seeks to analyze the play A raisin in the sun and show how racism was deeply rooted back in the 1950’s and the manner in which blacks always wanted to pursue the American dream where they would hope to have â€Å"life, liberty as well as the pursuit of happiness†. Looking at the social climate of the 1950s and 1960’s as displayed by the play, it is easy to see that black people lived in poor conditions as compared to white people. In this era, most of the public buildings in the white n eighborhood were full of racial segregation. White people did not mingle or live together with black people as they were thought to be of an inferior class. Many whites were also of the belief that by having black people in a white neighborhood, the value of their property would go down1. ... given in the year 1952 by the Women’s committee to end discrimination in the medical services, it was seen that there was a high connection between high death rates in black people and hospital segregation2. Still in the schools black children attended sub-standard schools as compared the white children. In most of the public schools together with colleges, racial segregation was rampant and blacks attained marginal education as compared to white children. Despite the fact that the Supreme Court in the year 1954 made a ruling using the Brown v. Board Education, that school segregation was not constitutional, it took quite a number of years for it to be implemented. In terms of the economic climate that the blacks faced during the 1950s, there was a lot of racial discrimination, which led to blacks getting very low paying jobs. After the Second World War, black veterans went back home so as to share their victory and live the American Dream. This however was not to be a reality for them as they were prohibited from settling in the upcoming suburbs. This is similar to the raisin in the sun play where Mama and her family are being asked to leave particularly because it is a white neighborhood. In the 1950’s black Americans have no choice but to live in cramped areas whereby even finding good jobs is equally hard. Unfortunately, candidates who are educated and are highly qualified for good jobs are not also lucky and they also face racial discrimination when the hiring process is on; for this reason, they have to settle for odd jobs. Black American population between 1940 and 1970 had drastically increased from 50 percent all the way to 80 percent. In the south, many black Americans lost both mining and share cropping jobs particularly due to the government investing