Democracy Individualism Essay example - 3518 Words

Democracy Individualism There is growing consensus in the United States of the potential collapse of democracy, and many scholars question whether America will be able to address the challenges necessary to avert it. At the heart of the issue is the disintegration of civil society. In a remarkable book on the subject – Democracy on Trial – Jean Elshtain (1995: 5) notes, â€Å"As a civic question – and it is by no means a civic matter alone – the locus of despair speaks to the loss of civil society. This deepening emptiness, and kind of evacuation of civic spaces, lies in the background of our current discontents, helping to explain why democracy is going through an ordeal of self-understanding as we near the end of the twentieth†¦show more content†¦In fact it is possible to have both negative and positive developments of individualism, a better understanding of which can be seen by an analysis of individual needs and individual reactions to environmental stimuli. Su ch an analysis may lend to a better understanding of not only how â€Å"negative individualism† develops in the U.S., but appropriate means by which these negative developments of individualism can be avoided in the future without loss of unique American individualism that stands as a forefront of American success and prosperity. Such an analysis, however, must consider both the individual as a unique human being, with individual wants, desires, and needs, as well as the individual responding to environmental queues which affect their behavior by providing either impetus for, or roadblocks to, their needs and desires. Civil society begins to atrophy when collective behavior is the result of a sufficient number of individuals who feel that collective ends are thwarting their own individual needs, resulting in further exaggeration of negative individualism in an effort to regain a balance, perceived or otherwise, between individual and societal needs. The qualitative method utilized in this effort attempts to unravel the disintegration of civil society in consideration of an analysis of the unique balance between individual needs and individuals responding to their environmental. Rapid and advancedShow MoreRelatedDemocracy And Individualism : A Nation Of A Homogenous Type Of Society1241 Words   |  5 PagesDemocracy and Individualism In the 1800’s, Thomas Jefferson, Andrew Jackson, and many others had visions for America that involved a nation of a homogenous type of society. It was believed in order to create a better nation that people other than the European Americans needed to be eradicated. In these beliefs, these men affected the America nation through their trials and tribulations, which help guide society into what it is today. Thomas Jefferson was a man who viewed white as beautiful. InRead MoreAn Exploration of Individualism as Described by Alexis de Tocqueville in Democracy in America1312 Words   |  6 PagesAn Exploration of Individualism As Described By Alexis de Tocqueville in Democracy In America The classic work Democracy In America by Alexis de Tocqueville has been the reason for scholarly pursuit as well as strife within that same community. Through a brief examination of this text, several of Tocqueville’s arguments helped to define many of the constructs that made America what it was as well as those that have led to what it has become today. Of the many themes and ideas presentedRead MoreAmerican Political Culture And Its Representation Of Democracy, Equality, Individualism, And Liberty1485 Words   |  6 PagesWORDS APURBA CHAKRABORTY American political culture is altogether vast and diversified; however, it retains one singular feature – it is a contradiction. At the core, the majority ideally has subscribed to the values of democracy, equality, individualism, and liberty. Even so, history attests to the fact that bona fide enforcement of such values is not consistent. The nation has simultaneously promoted equality while it denied equality. It has exercised open-mindedness toward other culturesRead MoreIndividualism, Collectivism and Human Behavior616 Words   |  3 Pagesover the decades has been individualism and collectivism and how they shape who humans are. The natural instincts to survive as individuals and within groups have existed since the beginning of time. In the author’s forward of Anthem, Ayn Rand states that social gains, social aims, and social objectives have become bromides of our language (Rand 15). By stating this she implies that society embraces collectivism and community i deals and has lost sight of individualism. Anthem describes a dystopiaRead MoreThe Asian Value Debate686 Words   |  3 Pagescommunity above individuals as well as a strong family based society. Another distinct feature of â€Å"The Mahathir Model† is that it draws upon the Western world, critiquing the Western worlds believes in a democratic model of politics as well as strong individualism. This model of Asian values helped Mahathir garner support in his agenda as stability and social cohesion became internalized as essential core Asian values (Medes, 1994). The authoritarian nature of Mahathir’s Asian values can also be seen throughRead MoreIndividualism Is Celebrated As An Achievement Of Our Culture, Economy, And Success1328 Words   |  6 PagesIn our modern society, individualism is celebrated as an achievement of our culture, economy, and success. It basks in the light of personal success overthrowing the success of the community, and believes that to be personally successful is more important than the success and solidarity among the people you identify with. In the 19th century of Latin America, this ideology was forced onto a society that perceived itself as a collective culture. The success of the majority was more important thanRead MoreIndividualism Vs Collectivism And Collectivism Essay1678 Words   |  7 PagesTITLE : Individualism vs Collectivism ABSTRACT Our world is a so vastly populated that the presence of differences among various socio-economic groups is natural phenomenon. One aspect among these differences is Individualism and Collectivism. Individualism can be observed in countries like USA, Canada, Netherlands, etc. while collectivism can be observed in Venezuela, Ecuador, etc.. While we study this topic one natural question comes to our mind is which Individualism or Collectivism should beRead MoreThe Development Of Liberalism After The Chinese Economic Reform And Open Up1708 Words   |  7 Pagesvision echoes the Chinese economic scene today, in which the decelerating economic growth rate is coupled with an increasing centralization of political power, foreshadowing an absolutist autocracy, at least. Hayek argues that the foundations of individualism go back to a root from classical antiquity and Christianity. And he sees the transfer of power from the state to the individual as the basis of western civilization. People in the past experienced dramatic elevation of material comfort and developmentRead MoreTocqueville s Views On The And Materialistic Quality America1395 Words   |  6 Pagesencounter a citizen in America so poor that he did not cast a glance of hope and longing on the enjoyments of the rich and whose imagination was not seized in advance by the goods that fate was obstinately refusing him.1† This particular quote, from Democracy in America, speaks in regard to every American. Personally I believe that this quote does define what an, â€Å"American,† is. We as a society do not give up, that is how the revolution began and it leads to one of the most powerful nations today. AmericaRead MoreEssay on American Culture: Individualism1091 Words   |  5 P agesHollywood and Disney World. Underneath the layers of TV advertising and hyper-consumerism, there is a cultural DNA that makes America what it is. Here is a brief look at several cultural â€Å"genes† that influence the way Americans think and act. Individualism Individualism is a way of life by which a person places his or her own desires, needs, and comforts above the needs of a broader community. This does not mean that Americans have no concern for other people, but it does mean that they give high priority

The Change in All Things Conservative - 1526 Words

The â€Å"Roaring Twenties† was the beginning of change for America, from the economy to the society and culture. A few months after World War 1, the 18th Amendment took effect in the United States, which began the prohibition and a spark for change in the lives of the people. The simplistic way of living was no longer used in the urban cities; life had changed from its conservative moral values to a more carefree â€Å"live as you please† type of mentality. Due to this change in mental state, the priorities of the people changed and seemed to center on illegal alcohol, liberalism, and money. This made it possible for the arrival of a new culture. The transition into a new culture began with the introduction of a new law. The 18th Amendment made†¦show more content†¦They began smoking and drinking in public and openly talking about sex (Klor 441), which before was not the proper etiquette for women was now the new liberated way of thinking. Along with the libe rated thinking and the cutting of the hair to a more boyish style, women also began bootlegging. Women had the liberty to be who they wanted to be, which in deed they did. Women began taking part in the men’s game which seemed to be risky and dangerous. They were often seen differently as male bootleggers. Due to the fact that it would be easier in court for women, the police were easier on women (O’Donnell). This shows that women of the time may have been taking advantage of the fact that they were still seen as vulnerable fragile women who couldn’t fend for themselves. Seeing that society still saw them this way could have lend to a further â€Å"rebellion† of wanting such radical change. Not only did women change in their physical appearance and on the outside but also on the inside, in the home. The birth rate had begun to drop in a slightly faster rate than before due to the introduction of the first birth-control clinic (Klor 442). Due to technolo gy and the rise of commercial production, women had more time to spend with family or time to spend on themselves. Along with this came a spirit of rebellion from the teens, this left mothers to juggle work, family, and the added stress of foolishness. The rebellious spirit was a popularShow MoreRelatedPresident Roosevelt and the New Deal1454 Words   |  6 PagesUnited States in a state of major depression, the Great Depression. FDR was elected for his ideas of change through the new deal, and the thought of hope had given to Americans. Roosevelt knew that a change was needed and was willing to go to tremendous measures to try to bring back the American economy, give jobs, and to keep democracy going on strong. 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The current conservative party however, can be seen to still be committed to its traditional conservative principles such as Euro-scepticism and thatRead MoreConservatism1077 Words   |  5 Pages‘Margaret Thatcher fundamentally altered conservative ideology.’ Discuss. Before Margaret Thatcher, there was classical conservatism which had its roots in very traditional ideas such as the status quo, for example. This meant that conservatives would largely stick to what they were familiar with, and would only change their principals if it was absolutely necessary. Property was also a fundamental idea for classical conservatives. They believed that an Englishman’s home is his castle, and thatRead MoreA Brave New World? Essay1485 Words   |  6 PagesA Brave New World? In the novel, Brave New World, by Adolous Huxley we are introduced to a world where an all-powerful government dictates the occupation, intelligence, morals, and values of an individual. The government known as the World State controls the entire process of a human, from life to death. The society is based almost solely on an consumer foundation, where making money is the sole goal of the government. Although the society is radical in its nature there are certain aspects ofRead MoreMy Political Ideology1142 Words   |  5 Pageson political issues may change as different circumstances occur each day. The environment around us has a powerful influence on the decisions that we produce and the views that we as American citizens choose to hold. After a semester in political science class my views and my political ideology have altered. Today I will explain how political science class has influenced my political ideology. When this class initially began I was sure, without a doubt I was a conservative. 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Today I will explain how political science class has influenced my political ideology.   Ã‚  Ã‚  Ã‚  Ã‚  When this class initially began I was sure, without a doubt I was a conservative. As the semester progressedRead MoreEssay about The New Side of the News Media1040 Words   |  5 Pagesterms conservatives and liberals came to be. People consider conservatives to be Republicans and liberals to be Democrats. News sources like the New York Times and MSNBC are liberal, while Fox News and the National Review are conservative. Liberals tend to believe in gay rights, for abortion, no guns, and centralising the government; although, conservatives like the ideas opposing the liberals. Liberals and Conservatives also have another name: Liberals are called â€Å"Left Wing† and Conservatives are

Skywest Cas Free Essays

eSkyWest, Inc. case Analysis Written Case Analysis Table of Contents 1. Introduction†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ pg. We will write a custom essay sample on Skywest Cas or any similar topic only for you Order Now 2 2. External Analysis†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ pg. 3-10 3. Internal Analysis†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ pg. 10-14 4. Key Decisions†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. pg. 14- 15 5. Alternatives†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ pg. 15 6. Recommended Decisions†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ pg. 16 7. Appendices†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. pg. 17-19 1-SkyWest Airline Introduction SkyWest, Inc. was found in 1972 by Raplph Atkins in St. George, Utah. Initially this was only a charter type of flight and was mostly used by businessman travelling between Salt Lake City and St. George, Utah. But with business partnerships and merging with companies like Western Airlines and later with Delta airlines partnerships the network of SkyWest airlines were much broad. Later in near future with more partnerships with United Airlines and Midwest Airlines helped the company to grow rapidly and in 2005 SkyWest acquired Atlantic Southeast Airlines. Currently SkyWest is operating in overseas too for instance Canada meanwhile it runs its operations in 34 states and nearly in 158 cities. Sky West case analysis report will help the reader to understand especially about the SkyWest Inc. and the general economic conditions of the regional airline industry of US at a micro environmental level along with some introductions of market size and market growth of the airline industry. The report is organized under the following main topics as follows. External analysis, internal analysis, Key decisions, alternatives and recommended decisions along with some charts and tables that helps the arguments for better understanding. Moving on when we consider the industry as a whole it had a decline due to the economic recession in 2009 that affected the growth rate of the airline industry and in terms of market size the revenue from passenger per mile decreased in 2008 compared to 2007 and this is an early effect of the economic recession, we shall discuss the threats and alternatives as we go along. In five year period from 2004 to 2008 the industry’s combined revenue has increased almost with a double effect from $4. 7 billion to $8. 4 billion (Please refer the epilogue table # 1). As part of the introduction let’s identify the vision statement and the company strategy. Company strategy is low-cist strategy and its competitive advantage is achieved by lower cost than its competitors. Vision statement is â€Å"Atlantic Southeast Airlines is committed to connecting more people, more often; to the places they love, by becoming the world’s first super regional airline. Moving on we would concentrate on the external analysis of this company. 2-External Analysis Economic Factors The external analysis assess the company’s external environment by looking at its Marco-environmental factors including the size of the market in terms of unit sale and sales volume as well as the market growth. It also examines the number and size of buyers and sellers in the env ironment, the pace of technological change or innovation, the economies of scale, geographic boundaries, the market supply and demand conditions, learning curve effects of the market and the differential products available. We will now evaluate SkyWest’s external environment by first looking at its economic factors. Size and Market Growth rate: The first economic factor addressed is the size of the company and its growth rate. SkyWest is the largest independently owned regional airline that is partnered with two of the major airlines; United and Delta. Alone SkyWest has more than 11,000 people representing their company none of which are unionized. Through the partnership with United and Delta, SkyWest was imited to the size of the aircraft through scope clauses limiting seating of 76 with Delta and 70 with United. This would limit the amount of business they could capture from their partners. In order to take advantages of their efficiencies SkyWest could have purchased larger aircraft to expand its business had there been no limitations. Throughout the five years SkyWest contracted to Delta and United ending in December of 2008, their annual growth rate had increased to a compounded 29. 6% with the number of flights increasing from 1,500 to 2,300. The size of the market in terms of unit sale and sales volume will be discussed in the next paragraph defining its size of buyers and sellers. Number and Size of buyers and sellers: The number of buyers in the company can be defined by the number of customers the company serves per year. SkyWest has the ability to serve over 100,000 customers per year due to the contract with Delta and United. The number of sellers in the company can be defined as the partnering airlines using their regional services to operate their connecting flights for a fixed cost. SkyWest is a regional airline that operates the connecting flights of its major partners Delta and United. The regional flight as well as the connecting flights through Delta and United has them serving 158 cities in 42 states and five Canadian provinces and Mexico. Their Hubs are located in Chicago O’Hare, Los Angeles, San Francisco, Milwaukee, Portland, Denver and Salt Lake City. In order to maintain these airlines they have maintenance based in Atlanta, Chicago, Colorado Springs, Denver, Fresno, Los Angeles, Milwaukee, Palm Springs, Portland, Salt Lake City, San Francisco and Tucson. Through their contract with Delta they have increased their customer base by operating about 430 connecting flights per day between Salt Lake City and designated outlaying destination which is about 59. 9% of the company’s capacity. The other 40. 10% of capacity goes to their contract with United that has them operating about 900 scheduled departures per day. In January of 2008 SkyWest took over Midwest allowing them to service 70 and 90 seating customers per flight. When they partnered with these major airlines there were a lot of changes that took place including technical changes. We will now discuss the pace of these technical changes and innovation. Pace of technological change or innovation: Most of the technological changes happened after the 9/11 attack on the World Trade Center and the Pentagon. One of the changes SkyWest had implemented was the Stetson Quality Suite. The Stetson Quality Suite is a mobile data collection and reporting software SkyWest used to ensure they were meeting or exceeding their safety quality standards. SkyWest used this particular software to keep up with the Safety and maintenance standards for the Department of Transportation and the Federal Aviation Administration. Now that we have discussed the pace of technological changes or innovation we will now go on to discuss the economies of scale. Economies of Scale: The economies of scale are the cost advantages company’s can obtain due to size, with cost per unit of output decreasing with increasing scale as fixed costs are spread out over more units of output. SkyWest was able to capitalize on the economies of scale when it partnered with Delta and United which helped reduce the cost of providing the service over what others could do. Through these partnerships SkyWest was able to gain access to an established customer base that would help increase their business in size and also lower the costs through the contracts where the major airlines were responsible for all their jet fuel, ground handling and aircraft maintenance and ownership. Given the gained access to customers through the partnership made SkyWest heavily dependent on Delta and United. With the current recession causing a dramatic downfall in the economic condition put all airlines including the major ones like Delta and United at risk to airlines losses, bankruptcies and consolidations due to the decrease in operating revenues by 87% with a 64% drop in income, 77% drop in revenues and a 60% drop in operating income. Now that we have discussed the economies of scale in the industry we will go on to discuss the geographic boundaries. Geographic Boundaries: The geographic boundaries of an industry refer to the geographic boundary lines that are drawn whether they are local, regional, national or global. SkyWest’s geographic boundaries are regional representing only small cities and also servicing major airlines through connecting flights. The partnerships with Delta and United had allowed expansion to current and new routes as well and additional departures. SkyWest was looking to expand more and through the acquisition with ASA they were allowed to expand geographically allowing them access to the East Coast markets and comprehensive national coverage that greatly expanded their scope of operations by adding regional jets to their fleets and a $1 billion to operations. We will now move on to discuss the market supply and demand conditions. Market Supply/Demand Conditions: The market supply and demand conditions changed greatly with the September 11, 2001 attack on the World Trade Center and the Pentagon. The 9/11 attack prevented people from flying due to the fear of crashing which translated into huge losses in the major airlines. People feared the larger airlines more than the smaller regional jets due to the fact that they felt the larger planes to be more susceptible to terrorist attacks. They assumed that smaller regional airlines would not be a target for terrorism but still saw them to be less safe than the larger airplanes. The second condition affecting the market demand was the recession starting in late 2007 that continued throughout 2009. The beginning of the recession had negative effects on participant’s income statements and balance sheets resulting in airlines losses, bankruptcies and consolidations. The recession continued into 2008 and 2009 causing a dramatic downturn in the company’s financial performance. This economic downfall of 2008 and 2009 caused a decrease in the number of scheduled flights, and passenger traffics by 3%, with cargo revenues dropping as well. The airline industry is highly sensitive to fluctuations in the economy because of the significant portion of business and leisure travelers. The recession had lowered the overall demand for airline services not only to the regional but all airlines in the United States. The most recent recession in 2009 had a strong impact on the credit markets preventing airlines from getting the needed credit to acquire new aircraft. Other things affecting the market supply/demand conditions were the seasonal fluctuations that increased travel during summer months and decreased travel during the winter due to flight cancelations and delays due to inclement weather. The weather related flight cancellations represented a loss to 2,850 of its flights with a decrease in pretax income of about $5. 2 million. Next we will discuss the learning curve effects in the industry. Learning/experience curve effects: The learning curve effects of the industry were outlined in the training offered to help pilots and maintenance personnel keep up to date on the new safety and maintenance regulations as well as their skills. The vast majority of training was at training facilities for both the company pilots and maintenance personnel through a six-week program. The six-week training program proved to be very comprehensive and respected that it attracted tuition paying Federal Aviation Administration personnel. Next we will discuss their differential products. Differential Products: The differential products discussed in this case were the Bombardier Regional Jets and the Embraer and ATR Turboprops. The Bombardier region jets were the main regional gets used in the industry. These were larger commercial jets used to service longer-haul flights to the destinations up to 1,200 miles away, which allowed regional carriers to operate new longer routes and run shorter routes more efficiently. The other product discussed was the Embraer and ATR Turboprop which seats 30 passengers. This jet was used for short- to medium-haul flights and was able to land on shorter runways. Several travelers were unsure of riding on the turboprops due to the perception of them being loud and uncomfortable. To accommodate travelers that wanted to ride a smaller jet with a more comfortable ride they created the Bombardier Q series turboprop that was equipped with noise and vibration reduction devices to help reduce the noise and vibration levels to those of a regional jet. In the next section we will define the driving forces for change in the industry. Driving Forces The driving forces are the factors that are driving the industry to make changes. These changes within the industry will have impacts on globalization, product and marketing innovation, technological change, changes in long-term growth rates and new government regulations. To start off we will discuss the impact on globalization. Globalization: SkyWest decided to go international with their business and started working with regional carriers in Europe, Latin America and China. The push to go global was due to the increased interest in airline business from people in Brazil and China. The people from these two geographic areas had pursued SkyWest to help them build their own airline within their geographic region. SkyWest agreed to help them train people, and organize from a 10- to 20 aircraft operation to a major regional carrier in countries that really needed a major regional carrier. Through globalizing their company SkyWest would be able to increase their purchasing power and help buys things at a lower rate. However, through the limitations the foreign governments would place on U. S. carriers, the opportunities by the international joint ventures would be limited. Now that we discussed the globalization driving factor we will go on to discuss the product and marketing innovation. Product and marketing innovation: The first product and marketing innovation is the Bombardier Regional Jets. The Bombardier regional jets originally serviced flights with destinations of up to 1,200 miles away. The new innovated Bombardier Jet has the quietest commercial jet available with a range of up to 1,600 miles. This larger regional jet offers many amenities including flight attendant service, stand-up cabin, overhead and under-seat storage, lavatories, and in-flight snack and beverage service. These jets were able to operate at lower costs then a 120-seat or larger jet aircraft due to its smaller size and efficient design. The other product and marketing innovation is the Embraer and ATR Turboprop, many travelers were not very interested in these smaller jets due to their noise level and uncomfortable seating. The new Embraer and ATR Turboprop has a 30 seat 120 turboprop and a 74 seat ATR 72 turboprops that are able to operate more economically over short-haul routes than the larger jet aircrafts. These smaller jets had comfort features such as stand-up headroom, a lavatory, overhead baggage compartments and flight attendant services. The smaller jets were more economically feasible making it possible to provide high frequency service in markets with relatively low volumes of passenger traffic. We will now go on to discuss the technological changes. Technological Changes: The technological changes taking place are the implementation of Stetson Quality Suite for Safety used to ensure their standards were meeting or exceeding their safety quality standards. The changes to the Bombardier and Embraer Jet to increase the overall quality and service of the jets in reference to their range of flight and the services offered to the staff and the customers boarding the flight. Other technological changes taking place are the new ways of communicating creating less need for travel. With the economy still being in a vulnerable position people are very sensitive to the price of a flight and try to find other means of commuting to their destination or communicating to that particular party. These technological changes have caused a decrease in the airline market due to price sensitivity that even business travelers are looking to save money. Next we will discuss the changes in the long-term growth rate. Changes in the long-term growth rate: The changes in the long-term growth rate started to increase when SkyWest partnered with Delta and United Express. The partnership had increased their annual growth rate to a compounded 29. 6%. This partnership had increased the number of flights from 1,500 to 2,300, and increased their departures to 2,400 to 208 cities per day by adding connection flight through their major airlines that serviced the United States, Canada, Mexico and the Caribbean. With the increased flights there were new government regulations that were applied. In the next paragraph we will discuss those regulations. New Government regulations: New Government regulations were in effect immediately after the 9/11 attack to ensure safety to the passengers by increasing the security regulations. The increased security also increased operational costs to the airline carriers due to the increased safety regulations. The last increase that took place was the increased jet fuel cost, due to the economic recession in mid-2008. All these changes lead to a decrease in ticket sales due to fear of flying post 9/11 attack, and the incurred costs of flying in response to the threat of rising fuel costs. The next section will talk about the industry’s key success factors. Key Success factors: The key success factors are the competitive factors that most affect industry members’ ability to prosper in the marketplace. Different types of key success factors can be technology related, manufacturing related, distribution related, marketing related and skills and capability related. Technology related: The technology related key success factors that the SkyWest Inc. was defined by how they were able to acquire new aircraft. Regional airlines were required to find the needed capital and financing to increase the size of their fleets to service the longer routes being outsourced by the major airlines. This had to be done without compromising their scope contracts with labor. SkyWest was able to overcome that by joining with ASA to acquire new aircraft. The next factors to success being discussed are the Manufacturing and Distribution related key success factors. Manufacturing/Distribution related: SkyWest’s manufacturing and or distribution related key success factors are defined by the ability to get their passengers to their destination on time. SkyWest was able to maximize their on-time arrivals by successfully getting all of their flyers to their sites on-time and making sure they did not miss their connecting flights as well. This gave them a good reputation with their customers in increasing satisfaction, naming them one of the highest rated regional carriers for on-time arrivals. Marketing-related The regional airline industry related its marketing key success factors to how they were able to maintain a strong safety image. In order to keep up with images of flying SkyWest increased safety standards and regulations to develop a much more safer image for those that were skeptical about flying smaller flights especially after the 9/11 attack. Passengers were unsure of the safety of the smaller jets preventing them from flying with the regional airlines, but after more safety had been implemented and other procedures had taken place to ensure everything was up to code they were able to maintain this strong image to passengers to ensure their safety when flying. Skills and capability-related SkyWest’s skills and capabilities were expressed in how they were able to maintain high levels of customer service. Typically regional airlines were not known for their customer service due to a large number of mishandled uggage that happened when transferring luggage from one plane to the next and an increased number of cancelled flights due to inclement weather. Most of these issues were not directly related to the regional due to their partnerships that handed all of their scheduling and majors taking priority in runways. SkyWest was able to maintain an average number of mishandled baggage, the second lowest number of involunt ary denied boarding’s and the fourth in number of complaints per 100,00o passengers. This put them at the top to be named the Regional Airline Company of the Year for on-time arrivals by the Department of Transportation multiple times. Five Forces Model of Competition The five forces model evaluates the industries competition based on their level of Rivalry, threat of new entry, substitutes, bargaining power of buyers and bargaining power of suppliers to be either strong, moderate or weak. We will first discuss the first and most powerful of the five forces of competition; rivalry. Rivalry: Competition in the U. S. irline industry is very strong with their being a large number of competitors in the regional airlines. The success of low-cost carriers such as Southwest Airlines and JetBlue has increased the pressure on airlines to compete on price to attract sufficient numbers of passengers to keep flights full. In some regards, major airlines use contracts with regional carriers to keep costs and airfares low. Therefore, contracts for regional service are awarded by m ajor carriers are to those having the lowest prices and reliable service. The overall rivalry in the airline industry is strong. Threat of new entry: The Threat of entry into the regional airline is define by the barriers to entry that include costs of acquiring a fleet of aircraft, acquiring contracts with major airline partners, and low industry profitability. Although the capital required to start up a modestly-sized small regional airline is fairly small, entering at a scale large enough to create a competitive threat requires substantial resources. The major threat of entry comes from major carriers which have the resources to start up their own regional airline. This threat is only moderate because the trend is for ajors airlines to sell off their regional airline operations and contract out service to regional carriers. Substitutes: Since regional airlines service short routes, passengers have more alternatives such as bus, automobile, or train travel than they do for long distance travel. This is particularly true when passengers are traveling only a few hundred miles. However, for major carriers that utilize regional carriers to execute hub and spoke strategies, there are few alternatives that they can use other than operating their own regional carrier. Substitutes are a weak to moderate force in the industry. Bargaining Power of Buyers: In the airline industry there are two types of customers; Leisure and business travelers. The business travelers tend to make up most of the market because they used the regional airlines to commute to and from locations that were considered too far to drive. They were also the most profitable because the larger customers purchased flights that were bought at a premium due to their short-notice or unexpected plan for flight. The Second type of buyers in the market were the leisure travelers that was a much smaller group of buyers because they traveled less often and were more price sensitive to the ticket sales. With their being several airline businesses in the industry all offering the same service, switching costs for tickets from airline to another tend to be very high. Airline industries have a fixed price on airline tickets preventing from buyers being able to bargain a lower price. Since most if not all customers search airline tickets based on price this makes the bargaining powers of buyers in the industry to be weak to moderate. Bargaining Power of Suppliers: In the regional airline industry there are two main types of suppliers Brazil’s Empresa Brasilerira de Aeronautica SA and Bombardier. With their only being two different types of suppliers in the regional airline industry that have two differentiated products, makes the demand for them to be very high. Since these are the only two for the regional airlines it makes the bargaining power of suppliers to be very strong allowing them to change higher prices without losing their service to another manufacturer. 3-Internal Analysis SWOT Analysis The SWOT analysis is an incredibly useful tool that helps review and analyzes the company’s current strategy. The SWOT analysis also identifies a potentially new direction for the company’s strategy to go. SWOT stands for strength, weakness, opportunities, and threats. Strength and weaknesses generally relate to factors that are internal to the organization, while opportunities and weakness in contrast often relates to factors that are external to the organization. We will now analyze SkyWest, Inc. using the SWOT analysis. Strengths: A company’s strength is something that the company is good at doing, or an attribute that enhances its competitiveness in the marketplace. SkyWest leads the industry in safety and maintenance by being a pillar in the industry for seeking safety prevention, and leading by example and getting involved to help the community overall be safer. SkyWest also has good statistics for safety and for on-time arrivals along with other factors that affect customer satisfaction. For years 2004 through 2009 SkyWest had the highest percentage for scheduled flights arriving on time. They also were second for the least amount of involuntary denied boarding’s. SkyWest also has a high level of employee satisfaction due to its workforce being nonunion. SkyWest owns jets like the Bombardier regional jet or the Embraer and ATR turboprops that are more economical and cost-efficient but also have speed that is comparable to those of larger jets; and they even have many of the same features that larger jets offer. A significant strength is that SkyWest has experienced a compounded annual growth rate of 29. 6 percent from 2003 to 2008. A key strength for SkyWest’s success is its ability to secure partnerships that expand its geographic and customer base. Now that we have completed analyzing SkyWest’s strengths we can take move on to analyzing their weaknesses. Weaknesses: A weakness is something a company lacks or does poorly; in comparison to competitors or a condition that puts the company at a competitive disadvantage. One weakness is SkyWest’s poor relationship with Delta Airlines which was caused by their disagreement over their contract and whether or not Delta owed SkyWest $25 million dollars. This inhibits SkyWest’s ability to fully function within that partnership, and of course being short changed $25 million dollars is also a significant loss. Another factor that contributes to SkyWest’s weaknesses was once considered a strength; SkyWest’s partnership with Midwest. After partnering together for two years Midwest filed for bankruptcy leaving a messy wind-down process for both companies, which undoubtedly will take a toll on SkyWest’s competitive advantage. Unfortunately that’s not where the mess ends; in 2009, Midwest was purchased by Republic, a larger company that is considered a direct competitor of SkyWest. Another strategic issue for SkyWest is the fact that because they partner with larger airlines and even though their own statistics for safety and for on-time arrivals along with other factors that affect customer satisfaction are either average or above average, from the customer’s point of view they are connected with the major carriers. Therefore the larger airlines statistics are intertwined with their own; which, results in customers perceiving a poor reputation for customer service; mishandling baggage, canceling flights, delayed flights for both carriers. Another weakness caused by customer’s perceptions is that customers typically perceive that the planes regional carriers use are small, uncomfortable, noisy, and also unsafe. Now that we have finished evaluating SkyWest’s weakness, we can now move on to analyze opportunities. Finally the last weakness we will go over is the scope clauses with United ; Delta Airlines. In the labor contracts with their pilots union it is spelled out the maximum size of airplane that an outside partner can operate. This limits the size of aircrafts to 70-seat and 76-seat aircrafts. This translates into a limited amount of ticket sales which means its limiting profits and market share and the number of flights a company could support. Now that we have evaluated the different factors that put SkyWest at a disadvantage we will take a look at the external factors; starting with opportunities. Opportunities: Opportunities are found within the external environment and arise when a company can take advantage of current circumstances or changes in the environment to gain a competitive advantage and become more profitable. Generally the best opportunities are the ones that match with your company’s strategic goals. One opportunity for SkyWest is with more and more major carriers that start outsourcing a portion of their routes to regional airlines this creates an opportunity for SkyWest to build those relationships and eventually become partners with those major airlines, giving SkyWest a chance to expand and grab more market share. Another opportunity for SkyWest to expand its market share is with United ; Delta Airlines filing for chapter 11 this creates a short window of opportunity for SkyWest to serve those customers and to do it with great service and low prices building an expanded loyal customer base. Another opportunity that SkyWest needs to watch the horizon for is if the scope cause liberation were to be approved it would create an opportunity for SkyWest to increase the number of routes flown in contract with other airlines and the seat capacity of those routes. It would be a wise decision to spend time making plans that could be quickly executed should the scope cause liberation get approved. It’s important to keep an eye on the horizon watching for changing technology, government policies, or social trends that way the company can respond quickly and seize the opportunity to gain the competitive advantage. A changing external environment doesn’t only mean possible opportunities it also means possible threats. We will now examine SkyWest’s possible threats. Threats: Threats are factors in a company’s external environment that pose a threat to the company’s profitability and competitive well-being. The 2007 economic recession is an example of a threat that many people did not see, because of this many industries including the airline industry suffered. Some people believe that we still have not fully felt the aftershocks of the recession and because the airline Industry is highly sensitive to the economy as a significant portion of travel; both leisure and business travelers, are discretionary, it is still a potential threat. Another threat to the airline industry is the increasing costs for jet fuel and its general availability. This can have a crippling effect on a company’s profitability and threatens their overall business operations. Fuel expenses already account for 35-50 percent of an airlines operation cost in 2009. Another external threat is if either new or changes are made to the ASA Regulation for either weather related factors or safety inspections. Both would increase costs and could threaten the success and the competitive advantage of SkyWest, which in turn could lead to decreased customer satisfaction and fewer sales. Since SkyWest is a regional carrier they need to keep a careful watch not only on how they are performing but also how their major carriers whom they have partnerships with are performing. If a major carrier were to file for bankruptcy it would most certainly threaten SkyWest with loss of customers and profits and could lead them to follow suit and file for bankruptcy as well. Another threat that could affect regional carriers in the industry is if two major carriers merge the result would most likely be consolidating of routes and possibly completely shutting down smaller hubs, which as we have explained would also affect their regional partners. Financial assessment Ratios: Financial data is important to analyze as it provides the concrete results as for how the company’s strategy is performing. Ratio analysis is often used to determine a company’s financial position. Ratio analysis breaks down into 5 key subgroups; profitability ratios, liquidity ratios, leverage ratios, activity ratios, and finally share-holder ratios. We will break down each one of these types of ratios starting with profit ratio. It should be noted that analyzing the individual companies financial performance alone, is not a complete analysis. To have a complete analysis, the ratios should be compared against the industry’s average; however, we will not be covering that in our assessment with SkyWest. Profitability ratios: Profitability ratios generally tell us how well the company is using their resources efficiently. One of the several profitability ratios is the Operating profit margin. This ratio tells us how much profit is earned on each dollar of sales before paying interest charges and income taxes. | 2004| 2005| 2006| 2007| 2008| Operating Income| 144776| 220408| 339160| 344524| 255231| Total Operating Revenue| 1156044| 1964048| 3114656| 3374332| 3496249| Operating Profit Margin| 0. 1252| 0. 1122| 0. 1089| 0. 1021| 0. 0730| Here we see that the operating profit margin has been declining, while the total operating revenue is increasing. This can be interpreted as less money is being made on each dollar of sale. When looking at the operating profit margin ratio higher is better and you want to see an upward trend, since we don’t see that it is cause for concern and should be looked into. Liquidity ratios: Now let’s look into the liquidity ratios. Liquidity ratios measure a company’s ability to pay off short-term obligations by using their liquid assets, one of these ratios is the current ratio. The current ratio tells us how much of the company’s short-term obligation can be covered by using and converting their liquid assets. 12/31/2008| 12/31/2007| Current Assets| 125,892| 122,802| Current Liabilities| 129,783| 118,202| Current Ratio:| 0. 9700| 1. 0389| SkyWest’s current ratio had a small decrease from 2007 to 2008. For 2007 their ratio was 1. 04, and for 2008 it decreased to . 97. The ratio should be higher than 1, however what an acceptable ratio is depends on the type of indust ry as it varies. The fact that their ratio is decreasing could suggest impending insolvency. However to accurately analyze we would need to compare the current ratio to other companies in the airline industry. Leverage ratios: Next we will move on to analyze leverage ratios. Leverage ratios are concerned with the balance between debt and equity. One of the leverage ratios is the debt-to asset ratio. The debt-to asset ratio measure the extent to which borrowed funds have been used to finance the firm’s operations and investments. | 2007| 2008| Total Debt| 3990525| 4014291| Total Assests| 3990525| 4014291| Debt-to assets ratio| 1| 1| Here we see that for both 2007 and 2008 the debt-to asset ratio equals 1; however this is a cause for concern. It would be better if the debt-to assets ratio were a low fraction. A low fraction would indicate that the firm less debt then assets and therefor does not have a high risk of bankruptcy occurring. Activity Ratios: Another area to analyze is how effectively a company is managing its assets this group is called activity ratios. An example of an activity ratio is the inventory turnover ratio; which takes the cost of goods sold divided by the inventory to determine the number of times the inventory is turned over and whether they are carrying excess stock. One example of an activity ratio is the average collection ratio. | 2007| 2008| Accounts receivables| 81216| 55458| Total Sales (Total Revenue)| 3374332| 3496249| Average collection period| 8. 7851| 5. 7897| This measurement indicates the average length of time it takes SkyWest to receive a cash payment after making the sale. The shorter amount of time is optimal. From 2007 to 2008 SkyWest shortened the amount of time by almost 3 days, bringing it to roughly 6 days. Other important measures of financial performance: The last category is kind of a miscellaneous category; however this category is sometimes referred to as the shareholder-return ratio because many of the ratios measure the return earned by shareholders from holding stock in the company. There are other measures as well like the internal cash flow measurement. This measures how much cash a company’s business is generating after paying operating expenses, interest, and taxes (often referred to as NIAT). Years| 2004| 2005| 2006| 2007| 2008| Net income| $81,952 | $112,267 | $145,806 | $159,192 | $112,929 | Depreciation| $76,817 | $115,275 | $189,885 | $208,944 | $220,195 | NIAT| $158,769 | $227,542 | $335,691 | $368,136 | $333,124 | – Key Decisions 1. One of the main points the case covers is the state of the global and national economy. As previously discussed the airline industry and its success is highly correlated with the state of the economy. 2. Another main point that SkyWest should be concerned with is their ability to attract and retain partnerships. Its already been established that SkyWest’s relationship with Delta has been changed to â€Å"it’s complicated† over the disagreement of 25 million dollars unpaid and not going af ter Delta in a lawsuit for the unpaid money for fear of losing their partnership and connected business. As Delta Airlines contributed 59. 9% of SkyWest’s customer capacity. Also their previous partnership with Midwest Airlines which then filed for bankrupt and later was purchased by a direct competitor, which could become larger and more capable; threatening SkyWest’s future. 3. Another issue plaguing SkyWest is the impact of high fuel prices. It is estimated that 30-50% of total costs are from the costs of fuel. This in conjunction with the scope clauses that limit the size of planes SkyWest can operate increases the costs and amount of fuel needed. . The Last problem the case covers is the issue of government legislation and regulations and the effect it has on the airline industry. Safety regulations and labor contracts that limit the number of passenger’s pilots can fly. Along with the issue of planes being grounded to perform safety inspections or the proposals of new legislation like the regulation that was going to require they provide oxygen for passengers that would have added a significant amount of additional costs. 5- Alternatives 1. Economy: Clearly one cannot control the state of the economy, but if SkyWest continues to take advantage of their strengths and repair weakness that are due to partner companies’ poor customer service, human resources and low profits they are likely to be successful when the economy is doing better. While the economic recession continues SkyWest should attempt to renegotiate their agreements with their major carrier partners and cancel flights, when capacity is low, in order to reduce their costs. They need to make sure they maintain competitive prices and not just meet customer’s expectations but also exceed them, this will lead to a stronger customer loyalty hopefully keeping SkyWest out of the red. 2. Partnerships: SkyWest needs to continue to develop their partnerships with major carriers to further diversify the amount of major partners, which would ultimately reduce the risk of being dependent on Delta and United. Also combining efforts would reduce the companies overhead. . Fuel costs: The rising costs and fluctuations in fuel price pose a significant risk as they are the largest chunk of operation costs for the airline industry. SkyWest should plan their routes to maximize their fuel efficiency along with again trying to renegotiate their agreements with their major carrier partners to permit flying larger size planes with more seating capacity; which would therefor create larger economies of scale. 4. Regulations: SkyWest needs to continue to pay close attention to union activity within the ASA Corporation and also continue to avoid labor unions and instead focus on employees through effective benefit packages and employee engagement. 6- Recommended Decisions 1. SkyWest airlines considerably has cash in had it could make a risky move by starting to serve in new countries since they are already exposed to some of the foreign destinations it would not be a bad idea but they must be prepared to face new competitors. This would help the company to offer more international connecting flights and strengthen the operations that already exists for instance in Canada. 2. As we discussed before as a whole the industry is enjoying an accumulated revenue, so at this point making new partnerships may increase the revenue share of SkyWest Airlines and this would help the company to face the unknown future challenges and lessen its affect to SkyWest airlines since the economy is not steady. . Even though SkyWest is well known for being the best at safety of the services rendered it should invest more on researches with the other industry competitors so they could split the cost and enjoy the benefits (joint research agreements). This would help the SkyWest to keep up to the new regulations that is set by FAA, TSA and DOT. 4. In the first quarter of 2009 they had a SkyWest had a revenue loss of $7. million which was merely by ASA because of poor maintains and inefficiency of the flights. Management should ta ke initiatives to reduce these types of inefficiency and integrate a successful system for sustainable growth of the company. 5. SkyWest Inc. should be concerned with the route maps and they should look for opportunities that could potentially help them to expand route coverage with the existing partnerships or to get into new business agreements with new partners. . Management should work closely with the finance department to cut down fuel and maintains cost to earn more revenues in the volatile economy. For instance management should be working together with finance department on hedging for fuel, and they could get into partnerships with smaller companies in the industry to share maintains cost rather than a large air carrier where SkyWest’s needs wouldn’t be considered upon a larger company. How to cite Skywest Cas, Papers

Project Proposal on Managing Finance

Question: The purpose of the Final Project is to apply the concepts and techniques of the module to the analysis of real-world situations or problems. You are expected to use diverse sources of information and to carry out an original analysis rather than summarise or rehash existing work. You are also encouraged to use situations and data from their own experience where possible. Project Proposal that includes the nature of the project, the sources of information you plan to use, and the most important concepts and techniques to be applied. For this module, you are required to complete a course project that reveals mastery in application of the management accounting and finance concepts emphasised in the course. This involves reporting on a specific organisation within an industry and the management accounting and finance practices that affect the value of the chosen firm or industry. This project should be a formal business report that provides both specific processes and strategies involvin g budgeting, costing, capital decision making, capital acquisition, and cost of capital structure of the chosen firm. These processes and strategies are to be supported with management accounting concepts. For this project, you may select a company that you are familiar with or work for. Tasks: Assess the budgeting process and procedures for the organisation with regards to preparation techniques, uses for evaluation, differences between business units/divisions, etc. Analyse how the organisation collects, stores, and prepares management accounting information, particularly the use of a management accounting system (MAS) and how information is disseminated throughout the organisation. Evaluate the costing process and procedures of the organisation with respect to method or approach utilised. Assess the capital decision making process within the organisation with regards to what methods are utilised, how such methods are chosen, how projects are selected and managed, and what measures are employed to evaluate performance. Evaluate the criteria or mechanisms used by the organisation for deciding how best to acquire capital and analyse the capital structure of the company. Answers: Nature of the Project The major aim of this project is to undertake research as well as analyze the financial information of an organization which will be carried out through the application of theoretical concepts and techniques. This paper will focus on the analyzing the budgeting procedure of an organization. Basically, it will emphasize on assessing the formulation of budgets for various units and different budgets(Drury, 2004). Budgeting is one the most important financial management activity of a business firm and it needs to be carried out efficiently. Therefore, the next task is to study the management information system for the same organization. It will help in obtaining an insight regarding the collection, preserving and preparation of the relevant management accounting information of the organization. Various costing procedures can be utilized for undertaking the costing activities(Freedman and Jaggi, 2000). This paper will study the costing procedure and technique adopted by the organization and its implication for the company. Capital decision making is associated with the selection of sources for financing the organizational activities. In this paper the capital decision will be analyzed to find whether it is appropriate or not. Additionally, this project will focus on the evaluation of mechanism which will be utilized by the company for ensuring appropriate capital structure (Epstein and Lee, 2011). Sources of Information In order to undertake this study, two types of information will be collected. First of all, secondary data will be collected which will help in understanding the background of the study. Secondary data will include the relevant theories, conceptual frameworks and inferences of the past research studies. Secondary information will collected from wide range of books, peer reviewed journal articles, research papers and trusted websites (Kumar, 2005). Additionally, primary data will be required for analyzing the budgeting and costing procedure along with the capital structure of a particular company. Hence, primary data will be collected by conducting interview with the senior finance managers of the chosen company (Gillham, 2000). Most Important Concepts This section will focus on providing a brief overview of the most relevant as well as important concepts that needs to be used in this paper. Budgeting and Its Importance: Budget can be described as the quantitative estimation of the future organizational activities. It is basically a forecasting technique that is used by strategic managers for controlling organizational activities towards desired direction (Epstein and Lee, 2011). The major purposes of budget includes controlling organizational resources efficiently, communicating the plans and goals with the concerned people, motivating the executives and managers, evaluating performance of the manager providing visibility to the performance of the company. Budgeting is an important tool for anticipating the future revenue and expenses of the company (Freedman and Jaggi, 2000). Costing Techniques Costing refers to the activity that is associated with the computation of cost of various business activities through allocation of resources in different phases. It is one of the most important activities as it significantly contributes in various decisions making of the company. There are various costing techniques such as process costing, activity based costing, standard costing etc (Jagolinzer, 2000). The company needs to choose the appropriate costing technique for meeting the organizational objectives. Additionally costing is directly related with the pricing decision of a product. Hence, each organization needs to adopt an appropriate costing technique (Hansen and Mowen, 2000). Capital Structure Capital structure refers to the proportion of resources that is used by an organization for undertaking various activities. There are various sources of funds which are available to an organization for financing the operations. Internal sources of fund refer to the retained earnings, personal savings of the owner of the firms etc (Jagolinzer, 2000). Additionally, the external sources of fund refer to the loans, debentures, overdraft, preference shares, ordinary shares etc. The company needs to select suitable sources of funds in an appropriate ratio for ensuring achievement of the organizational goals (Hirsch, 2000). Techniques Specific research techniques need to be followed in this paper for meeting the objectives of the study. First of all, inductive research approach must be adopted for this study (Kothari, 2004). The research design focuses on providing an efficient pathway for interpreting the collected data to reach conclusion and recommend. This study has adopted exploratory design for analyzing the gathered data through efficient techniques. The gathered data will be analyzed with the aid of qualitative as well as quantitative techniques (Johnson, Onwuegbuzie and Turner, 2007). This study will be completed within the 7 weeks. The time frame for indicating the expected time for undertaking each activity has been presented below (Ketchen and Bergh, 2004): Principal Activities Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Research topic selection scope analysis Identification of the sources for secondary data Literature Review Description of Research Methodology Preparation of survey questions Collection of primary data Data analysis Comparison of findings Conclusion and recommendation Final submission References Drury, C. (2004).Management and cost accounting. London: Thomson Learning. Epstein, M. and Lee, J. (2011).Advances in management accounting. Bingley, UK: Emerald. Freedman, M. and Jaggi, B. (2000).Advances in environmental accounting management. Amsterdam: JAI. Gillham, B. (2000).The research interview. London: Continuum. Hansen, D. and Mowen, M. (2000).Management accounting. Cincinnati: South-Western College Pub. Hirsch, M. (2000).Advanced management accounting. London: Thomson Learning. Jagolinzer, P. (2000).Cost accounting. Australia: South-Western College Pub. Johnson, R., Onwuegbuzie, A. and Turner, L. (2007). Toward a Definition of Mixed Methods Research.Journal of Mixed Methods Research, 1(2), pp.112-133. Ketchen, D. and Bergh, D. (2004).Research methodology in strategy and management. Amsterdam: Elsevier. Kothari, C. (2004).Research methodology. New Delhi: New Age International (P) Ltd. Kumar, R. (2005).Research methodology. London: SAGE. Newman, I. and Benz, C. (1998).Qualitative-quantitative research methodology. Carbondale, Ill.: Southern Illinois University Press. Riahi-Belkaoui, A. (2001).Advanced management accounting. Westport, Conn.: Quorum Books. Toms, J. (2000).Environmental management, environmental accounting and financial performance. London: CIMA.

Points Woodrow Wilson free essay sample

President Woodrow Willows Fourteen Points On January 8, 1918 President Woodrow Wilson gave a proposal to Congress which outlined the post World War I peace treaty later negotiated at the Paris Peace Conference, and In the Treaty of Versailles. The fourteen points were Intended to generate support for Willows vision of the postwar world, both home also among allies In Europe. The president hoped that the promise of a just peace would be embraced by the populations in enemy nations and generates momentum for ending he war.When comparing Valor Project ( primary) History World (secondary) documents for Woodrow Willows Fourteen Points, I found that the primary document is the actually proposal. There is nothing creative about it. It is just what Wilson stated. When reading the primary I had no understanding of what was being presented to both houses of Congress. In Wilson perspective it was for the Congress, to discuss the objects of the war and the possible basis of a general peace. We will write a custom essay sample on Points Woodrow Wilson or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page As, I read the secondary source document, I fully understood the proposal.The writer generated this version for the people. He shortened and paraphrased It but, I was able to understand the document. Indeed the Valor Project (primary) version was more Information then what was needed because he was presenting it to Congress so it had to be in a certain form most important professionally presented.

Problems Young Writers May Face Essays

Problems Young Writers May Face Essays Problems Young Writers May Face Essay Problems Young Writers May Face Essay Some of many problems a young writer may face during the process of starting his or her essay starts right from the beginning. The beginning is one of the hardest parts of an essay for most people including myself; it has to have the main argument you will be talking about throughout the essay. Saying that, my essay today will be about â€Å"Problems Young Writers May Face† during the writing process of he or she’s essay. Getting started on an essay is often one of the first problems young writers run into. This is usually because we’ve gotten right into the writing without doing any pre-writing. What I’ve learned is you can save time by first identifying the purpose of your essay, then brainstorming points you might make to achieve your goal. Brainstorming works best if you dont rush your thoughts; write down every idea you think of even if you don’t think it will end up in your essay. Then you can take your thoughts you wrote down and find the most important points to address and start from there. Being the next most important thing you would start off with in the first paragraph would be your thesis statement.A thesis statement is a sentence, usually located at the end of the first or second paragraph that explains the essays main point. Without a clear thesis statement it can be more difficult to structure and organize your ideas. A good idea is to come up with your thesis statement before you begin writing the body of the essay, and then show it to teachers and fellow students for suggestions on how to make it more specific if needed. Continuing on to the body of the essay many young writers have the fear of failure because every student struggles with insecurities about their writing abilities. Either they just dont like to write or have had negative experiences in the past.They may be self-conscious about expressing themselves through writing thinking they are doing it wrong, all wrong. But, expressing your insecurities

Assess the strengths and weaknesses of one schorarly definition of Essay

Assess the strengths and weaknesses of one schorarly definition of religion - Essay Example ings of psychological science and the first-hand researches of anthropologists all over the world, to develop the concept of religion from an integrated and new point of view (E.W.S, 1923). King (1992) states that he found Dr. William K. Wright’s concept of religion to be â€Å"something broad and universal, covering the whole of life† (p.384). It appeared to King that the universality and perpetuity of religion result from the fact that it â€Å"endeavours to secure the conservation of socially recognized values†. In the review by E.W.S (1923) of Dr.W.K. Wright’s book A Student’s Philosophy of Religion, Dr. Wright’s definition of religion is stated as: â€Å"Religion is the endeavour to secure the conservation of socially recognized values through specific actions that are believed to evoke some agency different from the ordinary ego of the individual, or from other merely human beings, and that imply a feeling of dependence upon this agenc y† (p.341). The Strengths in Dr. W.K. Right’s Definition of Religion: King (1992) observes that in order to determine the exact meaning of religion both the genus and the differentia of Dr. Wright’s definition have to be dealt with. In the genus of his definition of religion, the author had tried to include every conceivable form of religion to broaden the focus of the term as much as possible, and in the differentia he attempts to be sufficiently narrow and specific to exclude from the species of religion everything included within the genus which is not properly religious. Each of the separate expressions in Dr. Wright’s definition of religion is scrutinized by King (1992): By â€Å"values† many be any of a number of things depending on the level of progress achieved by the religion and of the civilization in which it appears. â€Å"Natural religions† is the term used by Dr. Wright for lower or less advanced religions: having values which are all concrete and practical wants, with belief in the supernatural. Relief

An essay about the book - The Brief Wondrous Life of Oscar Wao

An about the book - The Brief Wondrous Life of Oscar Wao - Essay Example His protagonist, Oscar Wao is a rejected boy moving in the society who lacks the physical appearance as well as the exposure to do and say the right things at the right time. It is a true portrayal of what goes on in life every day, but Diaz has managed to add the spark of fiction as well as humor to make this book even more interesting to read. Junot address’s the problem of existing in this world, harsh? Yes, True? Extremely! This book highlights the problem of men being suffocated in the fantasy of fiction and women are expected to do more than they can. It’s a tale of how Oscar’s life is affected by his dysfunctional family and how much his inner dreams are crushed regularly. Oscar Wao is the worst possible nightmare of any person who has gone through groveling social experiences in high school, college or even work. Oscar Wao is an extremely oversized boy who is known for his dorky outlook and lack of judgment with girls. He is from a typical Dominican family with a frustrated mother who works hard all day long and treats her kids with anything but love. Now, Oscar is a pity young character who has no father to support and guidance to lead him into the â€Å"manly† zone of life. In Chapter one Oscar’s sister comes to his support when Beli, his mother is hurling at him for crying because of girl trouble: â€Å"It wasn’t just that he didn’t have no kind of father to show him the masculine ropes, he simply lacked all aggressive and martial tendencies.† (Page 8) His problem was not the fact that he had no male guidance in his life; his uncle La Inca lived with them but was a drug addict. Naturally, Oscar was just not the m an of aggression and violence. This initial part of the story clearly paves the path of what is to come in the book. How the lack of macho-ism caused problems for the protagonist. What can be worse than the fact that you are beaten up by

Case study Essay Example | Topics and Well Written Essays - 500 words - 13

Case study - Essay Example ologist, that brought to light the issues surrounding ethics, and with the help of American doctors William Osler and William Welch, wrote the Berlin Code of 1900. The Berlin Code gave a list of ethical conditions that needed to be met before humans could be used in medical experimentation. Adolf Hitler, not to our surprise, decided that the Berlin Code had exceptions, people that were not considered to meet the standards that were set down by the Code. He felt that Jews, gypsies, homosexuals, and mentally disabled people did not count as citizens and, as such, did not have the same rights as others. It was because of this that Hitler allowed cruel and unethical experiments to take place in the concentration camps of World War II. These were not as much medical experiments as they were series of various tortures. In 1947, the Nuremberg Tribunal condemned Nazi doctors for their acts of torture and murder as opposed to medical experimentation. Due to what took place at the hands of Hitler and his Nazi doctors, the Nuremberg Code was created (Marrus, 1999). The Nuremberg Code hardly differs from the original Berlin Code, except that it made it clear that the guidelines extended to all human beings. Ten guidelines were outlined to ensure the utmost protection for humans during medical experimentation, including under certain conditions that it is not safe to use humans for experimentation, which would be situations that could cause injury, disability, or death. More guidelines were also added in the Nuremberg Code, as opposed to what was in the Berlin Code, to ensure that risks would be tended to before taking on a human subject in experiments; if risks would arise during the experimentation, the study would have to be terminated. The greatest change in the alteration of Codes as a result of Hitler’s actions is the consent that must now be given by the human subject (Vollmann & Winau, 1996). If they do not wish to participate in the experiment, they do not have

The Indian Armed Forces

The Indian Armed Forces The Indian Armed Forces have long enjoyed the reputation of being one of the finest in the world. The armed forces render invaluable service to the country, in times of war as well as during peace, ensuring the security of the nation. They are also called to help restore law and order, ensure the safety of the people in times of internal strife, provide help and relief to victims of natural calamities also contribute to the building of vital infrastructure facilities like roads and bridges in remote and war torn areas. The Indian Armed Forces are facing an acute shortage of officers in all three services. The shortage of officers in the Army is around 11,500 and in the Navy, it is around 1507. Air Force is approx 1237 offrs short of its requirement  [1]  . Statement of Problem. Is there a need to enhance the social standing of Armed Forces personnel to continue to attract the right talent to serve the nation? Hypothesis Though the profession of arms is a calling not a career, lately, some decline in the status social standing of the combatants, particularly the officer cadre of the three services has been perceived. It has led to the present generation of youth preferring other professions, leading to a significant shortage of officers in all the three services. If not arrested, this trend can get aggravated and begin to compromise operational efficiency of our Armed Forces. Justification For the Study Though the subject of status of Armed Forces has been touched upon by a large number of eminent personalities, no writer has comprehensibly addressed the complete issue. The approach of all the writers was either towards financial aspirations or changing social environment or it was a fragmented effort, touching a large number of inter-related issues, eg promotional aspects social standing in civil society. Prominent writings on present day leadership challenges, change in socio economic environment, growing involvement of Armed Forces in IS duties, changes in the Warrant of Precedence etc along with practical approaches to meet the present day challenges have been drawn up by a large number of military minds, journalists, politicians eminent scholars. It is felt that there is a requirement of articulation of these works in a comprehensive manner to recommend an appropriate approach towards the issue. Scope. This paper aims to highlight the erosion in status in the Armed Forces starting from the time of Independence. The reasons for this erosion will be debated. The lack of intent and complete endeavor of defence and civil personnels will be brought to light. Finally some recommendations for making the Defence Services more attractive would be discussed. Methodology It is proposed to study the subject in the following parts:- (a) Part I. Status of Armed Forces Officers before Independence. (b) Part II. Post Independence era. (c) Part III. Pay commission effects. (d) Part IV. Warrant of Precedence Present Status. (e) Part VI. Intent and endeavor with Limitations Positives (f) Part VIII. Recommendations. Source of Data The study has been conducted based on books and columns written by eminent writers on the subject, official history and gazete notifications of GOI, newspaper articles and write ups from internet sites. A bibliography of sources is attached. PART I STATUS OF ARMED FORCES OFFICER BEFORE INDEPENDENCE Warrant of Precedence Before 1947 Status of the Commander-in-Chief. The Warrant of Precedence of British India kept the Armed Forces Officers on a very high pedestal. The Precedence in India was regulated till the independence by a Royal Warrant which was promulgated on the 6th of May 1871  [2]  . As per the Royal Warrant, the Army Chief, the erstwhile Commander-in-Chief was higher in rank to the Chief Justice of the Supreme Court while Military Officers above rank of Major-General were higher than the Judge Advocate General of India also the Secretaries to the Government of India. Status of the Major-Generals. It is important to note that First Class Civilians of 28 years standing were equated with Major-Generals while in the present day it is with IAS of 14 years of service. Similarly Civilians of 20 years standing were equated with Colonels and included Commissioners of Divisions. Status of the Colonels Below. Inspector General of Police, then the highest post in any state were similarly equated with Chief Engineers were in the same league as the Colonels. The next grade comprised of the Third Class Civilians of 12 years standing who were equated with the Lieutenant-Colonels. These comprised of the Under-Secretaries to Government of India, Inspector-Generals of Jails etc. The next grade comprised of the Fourth Class Civilians of 8 years standing who were equated with the Majors and so on. The Comparison. It is evident from the above comparison, the high esteem of the officers of the Armed Forces which they enjoyed during the era. The Inspector General was responsible for the complete state but was considered equivalent to a Colonel of a Battalion with 20-25 officers. The same was required because the State machinery was generally static but the Armed Forces were considered to be working in a volatile environment requiring split second decision making which resulted in a situation of life death. There was no requirement felt of large number of officers in the police, where the job was to catch thieves and petty criminals. This task was found suitable for the lower staff in the police forces comprising one Darogah, one Jamadhar and a number of constables who were maintained at each district headquarters  [3]  . Later the same were controlled by the Deputy Superintendent, Inspectors, Head Constables and Constables. The Indian Armed Forces as the Preferred Occupation of Royals and Dynasties The Kashtriya Way of Life. Kashtriya meaning warrior formed one of the four varnas (social orders) in Hinduism. Kshatriyas constituted the military and ruling elite of the Vedic-Hindu social system outlined by the Vedas and the Laws of Manu  [4]  . A Kshatriya was a fighting man, he was bound by the holy scriptures to govern as a Dharma-Raja, with the main duties being protection of his subjects and livestock. The people looked upon Kshatriyans to protect them from all dangers. The great kings and generals on ancient and medieval India took pride in their Kshatriya lineage and took pride in being the kings and warriors in the army. The British Age. During the British Empire, most of the royals had to give up the rights to their land. Some of the royal dynasties even acted as British protectorates. In such times, only some of the dynasties could kept their own armies but the same was not possible with the smaller states. In time, it became a tradition of the royal princesses to either join the British Indian Army or to command their own troops in their small princely states. It was considered bounteous for these princes to command troops in the old Kshatriya ways, be it in the Indian army or the state troops. Serving the Army. Due to the above reasons, the British Indian Army was always associated with the rich royalty who served its ranks often rising to the officer cadre due to their competence and efficiency. Even after independence, the tradition continued. The Indian royalty found itself in the whos who of Indian army with few of them rising up to the highest ranks while serving the Army. Some of the prominent names among them are Colonel Sardar Bahadur Muzzaffar Jung Bahadur Thakur Girdhari Singh, O.B.E, O.B.I Brigadier Th. Harish Chandra Singh, V.S.M. of Kuchela royal family  [5]  ; Capt Amarinder Singh of Patiyala royal family  [6]  ; Brig Sukhjit Singh, MVC of Kapurthala royal family  [7]  ; Brigadier Bhawani Singh, MVC of Jaipur royal family  [8]  . The tradition of joining the Army gradually started to decline with time. The reasons can be attributable to a large number of facts to include the changing socio economics, the changing of family values and the perceived social standing of Armed Forces personnel in civil society. PART II POST INDEPENDENCE ERA START OF THE DECLINE Involvement of Mil in Pakistan, Bangladesh and Mayanmar in their pol affairs During the middle of 20th Century, most of the countries in Indian peninsula got their independence. Independent India found itself sandwiched between large numbers of politically unstable states in which the military frequently thrust itself in the political arena replacing the democratically elected political leaders. Large numbers of coups were accomplished by the military in the nearest neighborhood of India which fuelled mistrust for the Indian Generals in the political circle. The political class often found itself worried because of presence of influential leaders in the military. Military coups in Pakistan began in 1958 and number three successful attempts. There have also been numerous unsuccessful attempts since 1949. Since its independence in 1947, Pakistan has spent several decades under military rule (1958 1971, 1977 1988, 1999 2008)  [9]  . On the other hand, Bangladesh had military coups in 1975, 1977, 1981, 1982, 1996 then in 2007. Bangladesh remained under military rule from 1975 1990 under two different military rulers  [10]  . Mayanmar had its share of military rule when democratic rule ended in 1962 when General Ne Win led a military coup dà ©tat  [11]  only after fourteen years of democracy. The reaction by the politicians to all of the above was obvious. Firstly the Defence Services were increasingly isolated from the process of decision making in defence matters. During the British era, India was perhaps the only country in the world which had a single Commander-in-Chief for all the three Services. In 1947, this arrangement was discarded and each Service came to have its own Commander-in-Chief, independent of each other. The nomenclature of the three Chiefs was changed in 1955 from Commanders-in-Chief to Chiefs of Staff. In this set up, the Chiefs of Staff are not part of the Ministry. They are not authorized to take any decision on behalf of the Government nor issue any Government orders. These functions are performed by civil officials in the Ministry of Defence (MoD). The Service Chiefs continue to function as Commanders-in-Chief of their Service  [12]  . Each war increased the popularity of the Indian Army among the common masses and the status of the service chiefs was lowered after successive wars in the Official Warrant of Precedence due to the perceived threat of a possible coup by the Armed Forces. Such was the popularity of eminent military leaders like Field Marshal Sam Manekshaw after the 1971 Bangladesh libration that late Indira Ghandhi feared a massive military coup in 1977  [13]  . Mistrust of the Political class fuelled by Bureaucrats. The mistrust of politicians for the military generals was always exploited by the bureaucrats in every way to increase the rift between them. The incidents of armed rebellions coups in the neighboring countries the world over always added fuel to the fire. Gradually the military generals were sidelined by their political masters the bureaucrats made a place for themselves in between the political masters the military started making important decisions which made an impact on national security matters. Tradition History of Police Ranks The Police followed the following system of rank badges till about independence : (a) Superintendent of Police / Assistant Inspector General of Police. Three Stars (Upgraded to Crown on reaching the basic pay scale of Rs 950/-). (b) Deputy Inspector General of Police. Crown with one Star. (c) Inspector General of Police (highest police rank). Crown with Two Stars. In the late 1950s and early 60s, the police establishment went in for a major overhaul and upgradation of rank badges. This followed the introduction of additional ranks such as Selection Grade etc. To meet new ranks, rank badges were appropriately upwardly modified. Contrary to popular perception, the Ministry of Defence very vehemently protested the rank confusion created by junior police officers wearing senior military rank badges but the issue was sorted out in a high level meeting between MHA and MoD (the meeting is documented and minuted) where it was rather unusually concluded that there could be no confusion between police and military ranks since police rank badges are silver in colour whereas military ranks are made of brass, and it was also decided that rank badges would not reflect the actual status comparison of military and police officers. This later resulted in the rank of DIG (then established by pay and by the MHA as being between a Lt Col and a full Colonel) weari ng rank badges as worn by a Brigadier of the Army. So far so good. But this came to haunt the military years later when by forgetting the historical background of the issue; police officers started demanding status and pay equation by virtue of the rank badges worn. The skewed situation got adversely solidified when the 6th CPC commented about an established relativity between a Brig and a DIG in all probability based on the equality of brass carried on the shoulders by the two ranks  [14]  . PART III PAY COMMISSION EFFECTS Effect of Successive Pay Commissions The Post War Pay Committee of 1946. The first attempt at rationalisation of the remuneration structure was made by the Post War Committee in 1946. The mendate of the Committee was to produce pay scales exclusively to Indian conditions, to simplify the pay system and achieve maximum amount of harmony between the three Services. A decision was also taken by the Government that the future pays of the Armed Forces should be linked with civil pays. Based on these parameters and guided by the Post War Pay Code of the British Armed Forces, the Post War Committee recommended a remuneration system based on the following equations  [15]  :- (a) Service officers should broadly receive equal treatment with police officers. (b) A fully trained infantry soldier with three years service was equated with a semi-skilled worker who in turn was equated with an Able Seaman of the Navy and the juniormost Leading Aircraftman of the Air Force. Comparison of Officers. The closest comparator to Defence Services officers was identified as the Police as both wore a similar uniform due to the fact that the Indian Police was manned by mostly retired British Army Officers in the past. This relativity had no other logic with regard to job content. The same continues till date, much to the detriment of the Service officers pay scales. In establishing this relativity, it was agreed that the end of the Maj scale should not exceed the end of the Senior Time Scale of the Police in which the SP was placed, thereby establishing a linkage between the two. The next link in the Police then was the DIG. The Service representatives sought a linkage of the DIG with the rank of Lt Col. However, DIG was finally placed between the service ranks of Lt Col and Col. One of the factors in establishing this linkage was that the three pillars of administration, namely the DIG of a Range, the Commissioner of a Division and the Commander of a Military Di strict (of the rank of Colonel) had near identical years of service, were of approximately the same age and required to socially interact with each other. The Raghuramaiah Committee Report. Consequent to the Second Pay Commissions Report in 1960, a Departmental Committee, headed by Shri Raghuramaiah, examined the pay and allowances of the Armed Forces. It stated that  [16]  :- The Service representatives felt that pay scales approximating to the scales prevalent on the civil side were preferable to the existing pay structure, but that a revision would be such a complex and lengthy process that it was not practicable at the present juncture. In view of these practical difficulties, we decided that the present pay structure might be retained until such time as the Government finds it convenient to carry out a detailed review. Initiation of Major Changes in Cadre Structure by IAS IPS. As the benefit of a review of their conditions of service and pay scales could not be done, the Armed Forces emerged into the post second Pay Commission scene with a arithmetical revision of their pay and allowances. At this stage the Civil Services, especially the IAS and IPS, initiated major changes in their cadre structure. A Selection Grade was introduced in the IPS, between the SP and DIG. This grade was equated to the service rank of Col and pressure was built up for revision of DIGs pay scale. By 1969, the DIG had overtaken the rank of Col, and started drawing relativity with the ranks of Commodore and Brigadier, thereby lowering the status and relativity of the Armed Service Officer vis a vis the Police. The Third Pay Commission. In early 1970, the Government while announcing the formation of the 3rd Pay Commission, for the first time, entrusted the task of reviewing the pay and allowances of the Armed Forces to a Pay Commission and not to a Departmental Committee. However, there was a major difference between the terms of reference as applicable to the Armed Forces and that of the civilians. In the case of the Armed Forces, the Commission was not asked to make recommendations on the conditions of service but take them as given. This difference was prominently highlighted by the Commission in their report. On the question of the presentation of the Services case, the Commission was of the view that the service personnel should have the liberty to represent their case directly before them like civilian employees. But this request to the Ministry of Defence was turned down on the grounds that the requirement of Armed Forces discipline would not permit such an approach. Thus the three S ervices could not explain their case directly to the Pay Commission. As a result, many of the anomalies injected by earlier Committees remained uncorrected  [17]  . Status of Officers. The main thrust of the services was to seek parity in pay scales with the IAS. The Third Pay Commission was of the view however that the officer cadre of the Armed Forces was an omnibus group of individuals of varying disciplines, status and job responsibilities. Whilst there would certainly be some categories, though difficult to identify, who could claim parity with the IAS, the 60,000 strong Armed Forces officer cadre could at best be compared with the Class I officers cadre which had a similar disparate composition. Parity with IAS was therefore not accepted and the existing relativities were retained  [18]  . Expert Cell. The Ministry of Defence now created an Expert Cell comprising the Chairmen of the three Services Pay Cells, a Joint Secretary and an Additional Financial Adviser. The Expert Cell was asked to scrutinise the Memorandum of each Service and give their own views to the Pay Commission. Unfortunately no agreement could be reached between the Service Members on the one side and the Ministry of Defence on the other. Eventually a report was submitted only by the Service Members. This resulted in the impact of their report being lost and the Third Pay Commission had to seek views of Ministry of Defence seperately. Compensation for X Factor. In the British Armed Forces Pay Structure, the X factor compensated for the uniqueness and distinct disadvantages of service life. Service Headquarters sought the extension of the X factor to the Indian Armed Forces. The Third Pay Commission examined the advantages and disadvantages of Service life, considered that the former outweighed the latter and concluded that there was no justification for the X factor. One of the advantages of naval life taken into consideration was the opportunity for naval personnel to visit distant foreign countries at Government expense  [19]  . Formulation of Rank Pay. The third pay commission also crafted a rank pay out of the existing pay for defence personals. This was to differentiate the pay from Captain to Brigadier in a running pay band. It was specified by the pay commission that the rank pay was part of basic pay for calculation of all emoluments for consideration of status. The successive pay commissions continued with the same. But in the sixth pay commission, when the rank pay was abolished, the pay of all service personals was calculated erroneously as rank pay was not taken into consideration. This created a major anomaly. Research of XLRI Jamshedpur for sixth pay Commission in Estimating cost of Benefits For Armed Forces to government Incongruous Deductions XLRI Jamshedpur was tasked by the sixth pay commission to estimate cost of benefits of all government servants including defence personals. In their estimate, mundane things like loans for housing, car computer, canteen facilities, medical care etc were taken into consideration to calculate the cost of living of defence personals. The picture thus pasted was a very rosy one. The problems faced by defence personals in form of frequent transfers, separation from family, lack of stable education for wards of defence personals were not taken into consideration. Comparison with IPS, PMF and Other gp A services The sixth pay commission compared the Brigadier rank of Defence forces with DIG of the IPS. This comparison was wrong because the DIG was placed between Lt Col Col in all previous comparisons. The DIG wore the insignia of Ashoka a Star till early 1970s but later it was changed to Ashoka three Stars. On being questioned, it was clarified by the MoH that police ranks wear Silver Stars which was different from the Brass Stars of the military hence no comparison was possible. The Commission also used the PMF for comparison with the Armed Forces forgetting that PMFs are not Group A services. A service is considered Group A service only if at least 80 % of its employees hold ranks equivalent to Jt Secy above. The same was utilized by the bureaucracy in creating a rift between the Armed Forces the CPMFs quoting the problems faced in empowerment of CPMFs whenever the injustice faced by the Armed Forces were highlighted. Delinking the rank pay from the basic pay caused a major setback to the pay parity of Armed Forces with the other Group A services. Certain ranks with a higher pay scale till fifth pay commission turned up with a lower grade pay after the Sixth Pay Commission. In a noteworthy judgment, the Supreme Court of India directed that Rank Pay forms part of Basic Pay. The same was prayed by the Govt of India to reconsider the same is still pending. Comparison with Defence Support Services It must also be brought to light that Defence Support Services like Defence account services, Ordinance Board Services etc which are primarily existing for supporting the Armed Forces now enjoy a better pay scale that what is enjoyed by the services they serve. Also the promotion rate is much faster with an officer making it to Jt Secy level in 16 yrs while a equivalent Maj Gen makes it after almost 32 yrs of service. The Govt Doctors also have a faster promotion rate due to the MACP scheme but the same could never be implemented for Armed Forces doctors due to the acute disparity they would cause. PART IV WARRANT OF PRECEDENCE PRESENT CONDITION Successive Lowering of Status The status of Armed Forces Officers was lowered after each war as it was perceived by the civil society that the image of Armed Forces Officers was augmenting the political as well as bureaucratic class found itself threatened by the same. Analysis Effects of 6th pay commission to Include Financial Effects The pay commission was near sighted in determining the grade pay of Armed Forces Officers but when faced with a large amount of criticism, it delinked grade pay from status clarified that grade pay was only for determining inter services seniority. This was a knee jerk reaction but the damage was done. The grade pay differences was not only to be used to determine the seniority for all practical purposes but also determined the amount of Entitlements Benefits for all personals. This caused a major Financial Loss to all personals including loss of Social Standing among peers. Misinterpretation of the Warrant by Vested Interests The Warrant of Precedence shows Jt Secy to the GOI to be equivalent to Maj Gen. The official warrant does not cover the lower ranks. This was taken as a guide map by vested interests in equating all civil posts of IG police similar posts with a Maj Gen. In view of the above, it must be stated that very few posts are equivalent to Jt Secy to the GOI posts like IG police of a state is not equivalent unless empanelled by the GOI. These minor rules are not known by a large number of people are being used by some persons for their advantage. The Economic Boom the Present IS Situation The boom in the economy added to the aspiration of all persons including that of the Armed Forces. The present IS situation also increased the commitments lead to further increase in difficulties faced by the Defence personal. The same was not adequately compensated by the successive pay commissions or the government thus causing a steady decline in their strata in the society. Status as Perceived by the Society In the present society where the visible factors of money power are taken as guidelines for deciding the Social Standing of a person, the persons of Armed Forces take a beating. This has caused a visible change in the social environment has also affected the intake of officers in the Armed Forces. This of status has even affected the parity which is perceived by the civil society which can be seen from various agencies intake of ex-servicemen. In a recent UCO bank intake, the post of Security Officer was open to Commissioned Officer in Army (Captain)/Navy (Lieutenant)/Air Force (Flight Lieutenant) and to Any officer in the rank of Inspector (Executive)/Inspector (GD) from Para-Military forces like BSF, CRPF, ITBP, CISF etc. Shortage of Officers in the Armed Forces The Armed Forced are facing a acute shortage of officers in all three services. The shortage of officers in the Army is around 11,500 and in the Navy, the shortage is around 1606. The numbers which are less in Air Force is around 1342. This shortage is causing serious hamper in the operational efficiency of the services the trend need to be arrested at the earliest. Noteworthy Judgment Rank Pay Judgment Maj Dhanapalan case are major judgments of Honorable Supreme Court of India stating rank pay forming part of basic pay for all intent purposes. The Supreme Court slamming the union for treating Armed Forces personnel like beggars in respect of emoluments and pension asking authorities to adopt a more humane approach towards those bravely defending the countrys borders. Treatment of Veterans by Civil and Military The agenda of One Rank One Pay is present in the election manifesto of most of the National parties but no party in power has done anything on the same except giving lip service. The ex-servicemen returning their medals to the President of India was a day of national shame but no concrete steps have yet been taken to meet the demands. PART V LACK OF INTENT AND ENDEAVOR CERTAIN POSITIVES Approach of Govt to Incl Politicians and Civil Bureaucrats The apathy towards Armed Forces was well observed when the Committee of Secretaries formed to look after the anomaly of Sixth Pay Commission was formed without a military member and established more anomalies in its verdict. The Group of Ministers formed after the same to look into possible anomalies has not given any verdict even after a year of its formation. When the veterans demanding One Rank One Pension marched toward the Rashtrapati Bhavan for returning their medals, the President who is the Supreme Commander of Armed Forces did not even feel it important to meet them and assigned a Joint Secretary to receive the medals in her behalf. Negating the Effects of AVC Commission AVC Commission lowered the intake service for the rank of Captain to two years and that of Major to six years. This was done to increase the satisfaction level of the officers of the three services. The same effect was reversed by the Sixth Pay Commission in which the grade pay of all ranks Captain onwards was lowered such that now the Major equaled the Captain of the pre-AVC Commission days. It must be noted here that the Major of post AVC Commission is not even authorized the Majors Accommodation he possesses in a military station but now being equal to a erstwhile Captain, is authorized only the Captains Accommodation. This may not be a area of concern in a pure military station, but causes major embarrassments in a mixed station where the status has declined substantially. Similar problems exist for all military ranks. The Working of Mil Machinery Before the