A Swot Analysis Of American Airline

A Swot Analysis Of American Airline Abstract The airline industry has always been and continues to be the most fiercely competitive business sector in all facets of its operations. Operating on paper thin margins the drop in passenger traffic brought on by the events of September 11th, 2001 have affected domestic United States airlines as well as all global carriers. The events of that day have caused governmental intervention in the form of loan guarantees, compensation for terrorist attack losses, as well as insurance related to war risk (Shane, 2003). The Associate deputy secretary of Transportation stated that the industry is in its à ¢Ã¢â€š ¬Ã‚ ¦worst financial crisisà ¢Ã¢â€š ¬Ã‚ ¦(Shane, 2003), since the industry was deregulated in 1978. It is important to understand that two differing types of airline carriers exist in the United States. The majors refer to airlines earning revenues in excess of $1 billion USD annually and generally they provide national as well as international service. These airlines cater to the bus iness class customer and passengers who either expect or desire full in flight services such as meals and related amenities. American Airlines, Delta Air Lines, United Air Lines, U.S. Airways, Continental Airlines and Northwest Airlines fit these designations (Mayer, 2002). The discount air carriers have changed the face of the airline industry with their no frills, low-cost airfares and have put pressure on the majors in terms of eroding their market share. The preceding battle between discount carriers has further exacerbated the majors thin operating margins and has resulted in Delta, Continental, Northwest, United and US Airways (Beck, 2005) filing for protection under Chapter 11 of the United States bankruptcy laws while they restructure and renegotiate union contracts and creditor agreements. United States Senate Commerce Committee Chairman John McCain has stated that the United States government should be à ¢Ã¢â€š ¬Ã‚ ¦reluctant to do anything that might keep inefficient businesses afloat (Shane, 2003). This is the climate in which the subject airline, American Airlines operates. Chapter 1 American Airlines PEST Analysis The utilization of a PEST analysis with regard to American Airlines takes into account the political, economic, social and technological (NetMBA, 2004) environment the industry is embroiled in and how this has, is and will threaten to impact its operations and profitability. It must be remembered that the number of possibilities concerning macro-environmental aspects is almost limitless, thus concentration will be paid to those areas perceived to have the highest impact. Political The political stability of the United States was severely shaken by the terrorist events of September 11, 2001, and this directly resulted in a catastrophic drop in business as well as personal air travel (Ito et al, 2003). The preceding along with the following areas have impacted negatively on earnings as well as profitability among the majors: Pricing regulations Wage legislation and union requirements Deregulation policies of 1978 Increased emphasis on national and airport security Economic The overall economic climate in the United States prior to the events of September 11, 2001 called for a mild recession and the airline industry was wrestling with discount carriers. The pre 9-11 airline climate forecast a slight contraction as a result of the reversionary climate which was dramatically impacted by the events of 9-11 and the resulting economic aftermath (Ito et al, 2003): Dramatic slowdown of the economic growth rate Increase in fuel costs Balance of trade accounts Inflationary and fluctuations of the dollars against the Euro, and Yen Social The emphasis on September 11th throughout these varied analysis is due to the sweeping impact that event had on global events in all theatres. The social implications thus shaped or amplified are as follows (Mayer, 2002): Increased layoffs impacting all income groups Sharp decrease in lower and middle class travel Decline in airline related vacations destinations Negative impact of air travel safety brought on by the events of 9-11 Decrease in general airline related travel plans by consumers Low-fare travel stigma attitude shift to an acceptable alternative Technological The Internets impact on business and consumer purchasing habits heralded in a new age of information exchange which changed the manner in which airline tickets are sold. Airline SABRE system Decrease in airline travel agencies Introduction of Internet airline ticket reservations and ticketing Entry of Travelocity, Orbitz, Cheaptickets, Expedia and other best price shopping services The availability of the Internet as a consumer and business fare and flight shopping tool Porters Five Forces Michael Porters Five Forces model (QuickMBA, 2005) provides a framework to view the airline industry from the perspective of five forces that influence it: Rivalry American ranks as the worlds largest airline in terms of passengers carried, however is rated number 11th in terms of overall airline quality (Holderbach, 2004). Low-fare airlines garnered three of the top four spots in airline quality ratings, 1. Jet Blue, 2. Alaska, 3. Southwest, 4. America West. All but Alaska Airlines are low fare carriers. The remaining airlines are 5. US Airways, 6. Northwest, 7. Continental, 8. AirTran, 9. United, 10. ATA, 11. American, 12. Delta, 13. American Eagle and 14 Atlantic Southeast (Holderbach, 2004). Some of the more important facets within this category of the Five Forces model are: slow market growth since 9-11 high fixed operating costs low relative levels of product differentiation among the majors inroads of the low-fare carriers in the changing perception of air travel shake out of the industry since 9-11 in terms of bankruptcies and failures Threat of Substitutes Within Porters model substitute services come into play when demand exceeds supply, or vice versa. In the airline industry the excess supply has been attacked by low-fare carriers who have continually gained market share. Buyer Power The airline industry suffers from oversupply as well as fixed costs which served as the foundation for low fare carriers who offer no frill flights in return for discounted fares. This approach effectively pulled the casual traveler and spread to frequent travelers and some classes of business travel for companies seeking to cut costs. Buyer demand is re-shaping the airline industry as a result of these options. Supplier Power In terms of this category, fuel is the single largest airline cost expenditure item which affects all firms equally. Low Fare carriers by eliminating frills lower their per flight operating costs which have and is attracting scores of travelers to their fold. Barriers to Entry / Threat of Entry Traditionally, the high cost of entry in the airline industry reduced the treat of entry by competitive companies. However the business model offered by low fare carriers exploited the lower end segment of the market via price and provided a foundation for the entry of Southwest, Jet Blue, America West and others (Ito et al, 2003). SWOT Analysis The strengths, weaknesses, opportunities or threats internal to a company represent the strategic environment known as a SWOT analysis (QuickMBA, 2004). Strengths Some of the advantages that American Airlines has in comparison to its competitors are (American Airlines, 2005): Recognizable brand name Largest global airline in terms of passenger traffic National and International routes serving all corners of the globe Perception as a major carrier with the commensurate levels of service Weaknesses internal flight amenities draining profits inability to compete with low fare carriers on price lack of competitive pricing to attract casual traveler base vulnerability to pricing Opportunities (American Airlines, 2005). code sharing agreements with domestic and international airlines SABRE ticketing system Presence at most airports American Eagle regional routes Lucrative route structure Threats thin operating margins favoring low fare carriers public acceptance of low fare carrier concept customer quality perception of low fare carriers that exceeds the majors prolonged slow economy favors low fare carrier pricing structure segmentation of the industry into business and discount carrier classifications high fuel prices government intervention Chapter 2 Conclusion The intense competition in the airline industry along with thin operating margins and fuel costs along with other expenditures existed before the dramatic events of September 11th. The strengths of American Airlines in being the worlds largest airline provides it with a huge customer base that is familiar with the airline. This represents the core of all marketing, customer retention as well as the foundation to attract new customer trial. Customer retention and utilization represent the primary advantage that American Airlines enjoys and needs to utilize to protect its position as well as build upon. The American Eagle division provides the company with an additional customer convenience marketing tool via intra city (regional) destination traffic. In order to accomplish the preceding objective the company must increase its quality of service from its current 11th position to increase customer satisfaction. The 50/50 mix of business and leisure travelers that comprise its customer b ase has remained relatively constant and business class travelers contribute heavily to profits as a result of the higher fares paid for first class and business class seating (American Airlines, 2005). Utilization of target marketing with concentration on the frequent flier base represents Americans primary advantage to capitalize upon since is does not compete in a low fare platform. Tightened restrictions on fares has closed a lot of the gap, thus consumer perceptions in the higher income categories represent a huge customer base for American to capitalize on in stealing customers from the other majors as a primary strategy and eroding the fringe low fare customer base as a secondary target market. Technology in terms of software advances along with code sharing, peaking and Americans route and connection structures offer convenience. Increased international travel also helps the company as a result of its global routes and destinations. Americans size, reach, reputation, fleet and presence at over 154 airports reinforces the preceding (American Airlines, 2005). The companys corporate vision states its objectives are to: set industry standard for safety and security, provide superior customer service, produce returns for stakeholders and shareholders by increasing business and thus revenue opportunities for vendors and allied firms further solidify the brand name and image as a premier carrier increase creative ticketing, promotions, vacation packages and associated areas to distance the company from low fare carriers and thus minimize their effects, capitalize upon inherent advantages As the worlds largest carrier American Airlines business and leisure base provides the customer foundation to enable it to compete successfully against other majors as well as differentiate itself from low fare carriers. This ability to be the choice in the full flight service category along with the number of airports, seamless domestic and international route structure that enable it to offer direct service to the most destinations via its own branded airline represents a key convenience and thus marketing factor to garner success in this highly competitive environment.

Social environment

This is an example of a business changing to meet the needs of customers. Subways are trying to be more socially responsible by stunning their animals first, to appease consumers with strong moral objections. This Is Important because a study by Forbes showed that 65% of workers would seriously consider leaving their Jobs if they worked for a company that harmed the environment. Research has shown that over 88% of consumers think companies should try to achieve their business goals while Improving society and the environment.So therefore Subways diverse workforce may provide ideas that a more homogeneous workforce could miss. Also, they might eve a greater understanding of markets that may be segmented on these factors. They may also provide more natural links to market opportunities abroad, through linguistic skills, cultural knowledge and knowledge of foreign markets. This can explain why Subway operates in 83 countries, with a rapid rise in sales in Germany, its second most valuab le Western European market.Income Income can affect business. A company's products usually appeal to certain income groups. People with lower incomes are more sensitive to price and may prefer purchasing discount products. Permeates are experiencing a change In market share because of the increase of people with lower incomes and less disposable income who are sensitive to price (elasticity of demand) and a shift in tastes and trends, with cheap foods becoming Increasingly In demand.This means that the demand for discount food stores Is Increasing. Tests; an example of a food store that is experiencing a decrease in market share because people cannot afford Tests foods and prefer bargain stores like Lid. Deco's market share over the last 12 weeks (from outhouse) compared to a year ago Is down from 29. 6% to 28. %. Tests have responded to the threat with ‘hard discounters' by launching a poorly war on milk and other essentials. Tests has cut the price of pant milk to El to matc h budget chains.People are more aware of the importance of the environment and becoming ‘green consumers'; prefer environmentally-friendly goods which have less Impact on the environment e. G. Prefer to travel by bus. Cutbacks; expanding their recycling programmer to reduce waste developing more environmentally-friendly cups, evaluating store design and operations to identify ways to reduce the amount of water used, use responsible alluding materials and energy efficient designs for their stores The changing nature of the ethical environment Moral principles that should underpin decision making.Ethical behavior involves actions and decisions that are seen to be morally correct Ethics are the set of moral values held by an individual or group. An organization may make decision that it believes to be morally right, rather than one that suits the needs of some of its stakeholders. Thus a decision made on ethical grounds might reject the most profitable solution for an organizatio n in favor of one of greater infinite to society.Possible ethical stances Organizations may take different stances in relation to ethics, including: Viewing shareholders' or owners' short term interests as their only responsibility Recognizing that well managed relationships with other stakeholders bring long term benefits to shareholders or owners Including the interested and expectations of stakeholders in their mission Taking an ideological approach and placing financial considerations secondary Ethical Codes An instruction from an organization to its employees to indicate how they should exact to situations relating to moral values The focus of the code will depend on the business concerned. A typical code may include sections on Personal integrity in dealing with suppliers and in handling the firm's resources Corporate integrity such as forbidding collusion with competitors and predatory pricing Social responsibility Critics believe there is nothing more than public relations e xercises Ethical Investment Stock market investment based on a restricted list of firms that are ethically sound Ethical investors do not invest in firms thatFinance weapons deals to oppressive governments Make products involving tobacco, fur, animal testing and exploitative farming Do not act responsibly towards the environment or are not good employers Advantages/Disadvantages with Ethical Behavior Reviewing a firms ethical position A number of elements should be considered when reviewing a company's ethical position. Individuals Each person has their own set of personal standards derived from their upbringing, educations and background. As they make decisions, their own ideas of what is right and wrong is involved Corporate culture Set of unwritten rules that affect the attitudes and management style of a business. This can affect how employees behave in order to do well at the business Public standards Operate in an environment that affect everything they do and the results they achieve. A public outcry against a particular type of activity will force a business to look at itself and decide if it needs to change.It may also mean other businesses look at themselves as well Competitors A USPS can be built based on emphasizing their ethical stance. Other businesses may then review their operations Ethics, Business Culture and Delegation Organizations have cultures and codes of behavior that affect attitudes, decision making and management style. If there is conflict between the ethical position of the organization and the moral values of the individuals it employs, then delegated decision making may not reflect the ethical position of the organization. The potential of this problem can be minimized if the culture is one which all employees understand and take responsibility for.Changing business cultures is not easy and investment in effective training and communication is important to ensure that all Taft behave in an agreed ethical manner. Creating an ethic al culture within a business can actually improve motivation and can become part of a wider policy of employee empowerment. The duties of an organization towards employees, customers, society and the environment Benefits to Society Problems such as unemployment and pollution are likely to be reduced Quality of life is likely to be improved Society longer term needs are likely to be considered rather than simply the short term needs of a business Life and business activity will be easier if everyone involved s working together for the common good Simply the right thing to do.Firms have a duty to be concerned with the wider impact of their activities Benefits to Firms Improved financial performance Reduced operating costs due to greater recycling Enhanced brand image and reputation which could bring in more customers, trading partners and makes it easier to attract capital investment Increased sales and customer loyalty Increased ability to attract and retain employees Access to capit al Arguments against CARS Efficient use or resources is likely to be reduced if business are restricted by how hey can produce and where they can locate which could lead to higher costs and prices Socially responsible policies can be costly to introduce Stakeholders tend to have differing objectives and are therefore unlikely to agree on what is socially responsible behavior Social responsibility may be Just a passing fashion and nobody can be sure of the value of firms being socially responsible During a recession the objectives are profit and survival – social responsibility doesn't matter here If something is important to society at large it can be argued that the overspent should pass laws to ensure everybody acts responsibly Just an extension of a firm being market orientated, meaning its only done as the customer wants it Overall, in the long term, CARS could benefit businesses, as the local community may improve in terms of wealth, quality of life and standard of livin g, meaning the firm could also benefit. Most large firms will produce an ethical code of practice. This will uphold the firms social responsibilities. This might include being environmentally-friendly wherever possible. Cutbacks CARS; giving back to the environment Environmental mission statement;Understanding environmental issues and sharing these with staff Striving to buy, sell and use environmentally-friendly products Recognize that fiscal responsibility is essential to our environment future Installing environmental responsibility at a corporate value Example; serve high quality coffee that is ethically traded and responsibly grown. They do this through forest conservation efforts and farmer Why be ethical Marketing opportunities: A good reputation in relation to environmental issues can act as a positive marketing tool that encourages customers to choose one brand over another. They can also build a loyal customer base through USPS. Financial opportunities: Can actually make i t easier to get money off certain banks – banks like Cooperative will not lend money to firms with a reputation for damaging the environment. Lower costs through recycling and less waste.Human resources opportunities: Motivation, attract the best workers who want to work for a company with high standards. Poor reputation can damage reputation and the ability to attract high quality applicants Why not be ethical; More expensive to source raw materials, more expensive capital goods to cut pollution, Training workers to be ethical costs money, losing custom from more ruthless competitors Ethics or Public Relations? Public Relations – Activities to boost the public profiles of an organization Public relations usually involves obtaining favorable publicity via the press, television or radio. Unlike advertising, it is not paid for and there is no control over its content.When a business behaves ethically it may be good for PR. It has been suggested that the good PR is the ma in reason for ethical behavior – it can help enhance the image of a business and is likely to generate more goodwill. This in turn will lead to improved sales and may eventually boost the company's share value. Example; Foxing (public relations)(benefits of not being ethical) Criticized for polluting nearby rivers with factory chemicals, black-green water dumped twice a day. Foxing said it is complying with emission standards and bring the factories into full compliance with policies and that other companies within the same industrial park are dumping water into the rivers too.This shows they are stating that their complying with emission standards for public relations because really they onto want to lose their competitive advantage from more ruthless competitors; doing it to save costs, generate profitability quick, keep costs low, keep up with demand etc†¦ More evidence that they care more about public relations is that they installed solving underlying problem of sui cide so the social responsibility doesn't reflect genuine values, don't care about their staff, only care about deadlines and money. Example Primary: (genuine values) The roof of their factory in Bangladesh collapsed, killing more than 1000 people.Long-term compensation and support services for the errors and families who were working in the factory payments end this month ($mm) = High cash outflows so less revenue. They also had building surveys to assess the structural integrity of factories which means they are addressing the underlying problem. However this may not actually affect Primary, this may be cheaper in the long term than paying their staff higher wages; a significant variable cost. This shows that corporate social responsibility is Just a form of public relations and a way to back their reputation and offer a method to ‘shut them up'. Could be because of public relations?

Compare/Contrast Business Practices in Your Native Country to That in the Usa

compare/contrast business practices in your native country to that in the USA Business practices are an essential part of a country’s culture. In addition, the business practices in different countries are quite different. China and America are both big countries of the world, and they still have differences in business practices. In this essay I will compare business practices between China and the USA to find the point of the same and difference. First of all, in terms of interviewing, there are some difference and similarities between China and America.It is the same that during the interview, the interviewees need to dress up and be well-mannered, and they have to answer the questions asked by one or more than one interviewers. The difference is that, in the USA, the interviewers also hope the interviewees will ask questions, not just give answers, to ask some questions about the company, the system or something else. The interviewers want to see the enthusiasm of the inte rviewees and how much are they interested in the company through the questions. But in China, most of the interviewers do not like interviewees asking questions because they think this behavior is not respectful.They just need the interviewees to answer questions, but do not pay much attention to what the interviewees ask. Secondly, there are differences in management styles. The Chinese are much stricter, more conservative and efficient than Americans. Americans are more humorous, free and open. Different characteristics determine different management styles. The Chinese boss may force the employees to work till night due to an unfinished project, but the American boss may not do that, they clearly consider that, work is work, life is life.And also, the Chinese bosses control more, they do not allow the employees to get very involved in the decision-making process, they simply give orders. Compare to that, the Americans are more democratic. Thirdly, the relationship between employe es and bosses is different. A clear hierarchy exists in most of the Chinese companies. The boss and his employees are not totally equal, at least the call and the status. But in America, the employees can call bosses’ name and also be friends with them. That’s much more a free style. The other aspect is the business etiquettes.All cultures have rules of etiquette that must be followed in order to show respect. In China, businessmen and businesswomen are expected to dress conservatively in dark or neutral colors. Women's apparel should be modest. That means high necklines and low-heeled shoes. In America, it is also required to dress suitable, but not that much restricted. And also, understanding hierarchy is essential in China because the greatest attention, including order of address and seating, depends on the importance of the individual within the organization. Business people should know who answers to whom.The tone of conversation matters as well. But in the Amer ica, people are free to walk and talk in most of time. They don’t pay much attention to the seating and title anyway. Chinese businessmen would say simple words like â€Å"have you had meals? † or â€Å"where are you going? † when they meet. This reflects one person’s care for the other, but the American businessmen would feel bad as their privacy is interfered. Last but not the least, there are some differences in the job search. In America, the applications show questions directly like â€Å"do you know some relatives in our company?If you have, list the names. † or â€Å"have you worked in our company before? †. But in China, these kinds of questions are not allowed to be asked, because they show injustice or discrimination. I only mentioned five aspects about the differences between China and America in business practices. But actually, the differences are many more than I mentioned. I hope American and Chinese businessmen will understan d these differences in business practices and adjust to each other better. As the old saying goes â€Å"the only way to win a war is to know your enemy well†.

Cabeza De Vaca Essays - Exploration Of North America, Exploration

Cabeza De Vaca Essays - Exploration Of North America, Exploration Cabeza De Vaca Cabeza de Vaca was an explorer who was born in Jerez de la Fronteria into a family that took the title, Cabeza de Vaca, head of a cow, from his mothers side of the family. In 1212 one of her ancestors- a shepherd named Martin Alhaja- had helped the Spanish Christians win an important battle against the Moors in by marking a unguarded mountain pass with a cows skull. The Christians attacked, scoring a major victory, and Alhaja and his desendets were honored by the name Cabeza de Vaca. In 1527 he was appointed the treasure of a royal expedition led by Panfilo de Narvaez of about of about 300 me to Florida. In April 1528 the expedition sailed into Tampa Bay, he began an over march into Apalanche Bay, and then attempted to reach Mexico in makeshift boats. Seperated from Narveaz, Cabeza de Vaca led a small group of survivors of the expeditions Dorantes, Castillo, and Esteban. The Moor escaped and began a journey which are now Southwestern United States and Northern Mexico, in 1537 Cabeza de Vaca returned to Spain rewarded with the honor to be governor of Rio de la Plata (now Paraguay). His account of the Naraveaz expedition Relicon and his tales of Zuni and their villages the legendary Seven cities of Cibola, encouraged many other expeditions to America including Hernando de Soto and Franciso Vasquez de Coronado. For Historians, Cabeza de Vacas importance came from his having been the first European to travel into Southwest and to write reports that spurred explorations of the region. His reports were about his tribal experiences with the Karankawas, Caddoes, Atakapans, Jumanoes, and Conchoes, Pincas, Optans, and the loose band of hunters- formally known as the Coalitecans.

How to Balance Study and School Sports Essays

How to Balance Study and School Sports Essays How to Balance Study and School Sports Essay How to Balance Study and School Sports Essay How to balance study and school sports Getting behind in your studies while playing on a high school sports team? Here are tips for balancing the two. Sponsored Links Many high school students play sports and go to school at the same time. This is fun, but often we find that the balance scale is tipped towards sports instead of school. Academics should always be first in life, no matter what the circumstances. You can’t shortchange school for athletics. Sometimes you may even have to give up a sport to regain what you have lost in the learning process when assignments don’t get done or lessons aren’t remembered. There are ways, however, to stop the problem before it begins. Here are a few of them. | Number 1: Never spend too much time in sports. Many athletes practice all afternoon after school, every day, cutting into homework and study time. Instead of using all your time practicing, finish your homework, review the day’s lessons, and take another look at tomorrow’s assignments to make sure you’ve got everything covered. Many athletes put off homework until the last minute, when they arrive home, tired and hungry after hours of football or basketball practice. Postponing homework is the foundation for falling behind. Finish homework first thing before or after practice. Number 2: Always pay attention in class. Students who are involved in extra curricular activities often daydream about games or doze from being tired. There is a time for everything, so during school hours, remember to focus completely on schoolwork. This will help because when doing your homework later, you’ll understand it better than if you weren’t paying attention in class. When at study hall, skim a lesson. When you have free time, take a few notes. You don’t have to study all the time, but the more you do, the better off you’ll be. You will play better knowing that your grades are going well, and your coach may be able to help get a tutor or suggest a mentor. Coaches love it when players are good students. Number 3: Know when to quit. This may seem harsh, but if you simply can’t keep up in both sports and school, stick with school. Sports can come later. School is long term. Sports aren’t. It is well known that good-paying jobs are becoming harder to find. You need an education at just about everywhere you apply. Take advantage of your free public education. If you do drop your sport, spend the former practice time catching up in your grades, then you can join the team next year, or play for a community league later. You have the rest of your life to play a sport. Pursuing a high school diploma gets harder as you get older. Get it while you can. If you follow these steps and apply them when necessary, your grades should go up and you’ll be happier. It is always better to have a good future then a great past. Your education should always go first no matter what the circumstances. I would also recommend talking to a teacher to discuss how to balance the two. School is cool! That is why you should choose to learn first. | hbsss

The role of the IMF in helping poor and debt-troubled countries Assignment - 1

The role of the IMF in helping poor and debt-troubled countries - Assignment Example Its major function is to maintain international monetary system, the system through which countries make international payments. It basically works toward providing a system that will enable foreign exchange among countries as it promotes investments and encourage a global trade that is balanced (Heakal 2010). Countries accumulate debts by borrowing from other countries or institutions especially when getting funds from outside seems cheaper and easier. This is done for the purpose of investment in areas such as factories, production of raw materials, and to acquire products that cannot be found within their borders. Borrowing is also done to overcome crises such as wars and natural disasters. There are two means of paying the debts; by simply paying what is owed from the outcomes of the investments especially when loans are invested and managed in viable projects, and by borrowing new loans when conditions are favorable, which is used to offset the older debt (Kocic 2014). The International Monetary Fund is one organization that lends a shoulder to countries with difficulties to pay their debts. These countries experience a situation where their imports and other income sources cannot balance off what they owe. These countries turn to the IMF for two reasons; through loans, the IMF provides an instant means to offset obligations to external lenders and other lenders (both private and public) such as the World Bank which only give loans to financially struggling countries that have agreed to loan terms with IMF. This puts the IMF in the role of a gatekeeper; for a poor country to get loans from other areas, they must first have a loan with IMF (Multinational Monitor Magazine, 2000). As stated by IMF (2014), when a country is experiencing trouble financially and is unable to pay debts, it puts the international financial system at the risk of instability. The loan is open to all member states regardless of their economic state; whether poor,

Sustainable Business and Ethics Thesis Example | Topics and Well Written Essays - 4000 words

Sustainable Business and Ethics - Thesis Example The mission statement of Adidas Group is to become the global leader in the arena of sporting goods which encompasses brands that are developed on the passion for sporting lifestyle and sports as an important consumer-oriented aspect. The mission statement of Adidas suggests that the company focuses on being a leader in design and innovation of sporting products based on the changing needs and demands of the customer groups. Additionally, this mission statement also suggests that Adidas is a company driven by passion and innovation which it aims to incorporate through every part of its value chain and business functionalities. The mission and vision statements formulated for the Adidas business plan are designed on the basis of the primary objective of these statements to address the organizational components, organizational value chain and the organization as a single performing unit. The sustainability initiatives of the company encompass different innovative strategies and initiatives like investing in suitable Corporate Social Responsibility ( CSR) initiatives, focusing on maintaining legal and ethical compliance and ensuring the adherence to the international and local regulations and policies of operating in the sports good industry. Becoming a sustainable company has remained one of the primary objectives of Adidas. For achieving the desired level of sustainability in its business practices and functions, Adidas has dealt with varying internal and external challenges. There are five key challenges that have to be faced by the company in its current initiative of tapping in the sports industry of the United States of America. These include being competitive, being a preferred employer, being a responsible multinational company, show an adequate amount of environmental responsibility and also ensure the maintenance of sufficient levels of social responsibility in the management.