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Case Study- Rainbow Illusion

Executive Summary

In this report, the discussion is made on the Company Rainbow Illusion concentrated in South Wales & Victoria. The evaluation of the processes, risks & internal controls for its transaction cycles has been examined. Firstly, the six strengths of Rainbow Illusions have been identified for controlling sales transactions. Secondly, the problems keep away from by including the strength in the system for calculating sales transaction. Thirdly, the situational pressures has been discussed which increases the likelihood of fraud. Fourthly, the discussion is done on the companies for choosing distributed system to install instead of centralized system. The company uses simple cash registers by four-part sales invoice to confirmation each deal. These sales invoices are used despite of the payment type. The distributed system & centralized system has been investigated as many companies used distributed system instead of centralized system. The sales of the company can be manages by the manger & the assistant manger which can deal with all the sales transaction done in the company & paid on their daily wages. They report all these happenings to the CEO of the company for better & secured growth of company.

Introduction

Rainbow Illusion is the 30 store retail chain packed in New South Wales & Victoria that offers prepared to wear garments for youthful females. Each store has a permanent chief & an associate trough that both are paid on compensation. The clerks & deals faculty are regularly youngsters working low maintenance who are paid a time-based compensation in addition to a commission dependent on deals volume. The organization utilizes unsophisticated money registers with four-section deals solicitations to record every exchange. These business solicitations are utilized paying little respect to the installment type. On the business level, the sales agent physically records his or her worker amount & the exchange, adds up to the business receipt, ascertains the rebate when fitting, computes the business charge, & pre-pares the great aggregate. The salesman at that point gives the business receipt to the clerk, holding one duplicate in the business book. The clerk surveys the receipt & information sources the deal. The money register precisely approves the receipt, consequently doling out a successive number to the exchange. The clerk is additionally in charge of getting credit endorsement on charge deals & affirming deals paid with a money order. The clerk gives one duplicate of the receipt to the client & holds the next duplicate as a store duplicate & third for a bankcard, if a store is required. Returns are taken care of in precisely the invert way, with the clerk issuing an arrival slip. Toward finish of every day, the clerk consecutively arranges business records & takes money record aggregates for money, bankcard, check deals, & money & charge card income. These aggregates are accommodated by the associate director to money register tapes, the aggregate of the sequentially numeral deals records, & arrival slips. The associate administrator readies a day by day compromise report for the store director’s audit. The supervisor audits money, check, & MasterCard deals & afterward readies the day by day bank store .The chief makes the store at the bank & records the approved store slip. The information handling office restores a week after week deals & commission action report to the administrator for survey.

Strengths in Rainbow Illusion’s System from controlling sales transactions. 

The strengths in Rainbow Illusion’s System from controlling sales transactions are:

The sale people are young & are on part time basis with incentive based on sales volume: 

Their manager & the assistant manger are compensated on the salary based on the hourly basis for controlling & managing the retail company sales transactions.

Every 30 Stores make use of similar system for calculating sales transactions: To control sales transaction the retailer physically report his or her worker quantity & the transaction (class, type, description, quantity & unit price), total the sales invoice, estimates the appropriate reduction, sales tax & prepares the grand total & then provides the sales statement to the cashier, keeping one copy in sales book which are paid on the hourly basis (Katsikeas, et. al., 2018). 

The parting of sales people & cashiers: The salesman at that point gives the business receipt to the clerk, holding one duplicate in business book. The banker then reviews the statement & inputs the sale. Mechanically, the cash register validates the invoice & automatically assigns a successive number to transaction. The cashier is also accountable for receiving credit support on charge sales & favorable sales compensated by cheque. The cashier then gives one copy of invoice to the client & keeping second copy as the store copy & third for the bankcard, if the deposit is required.

Company uses unsophisticated cash registers with four part sales invoice to record each transaction: At the end of the day, the cashier manages the sales invoices sequentially & takes the cash register totals for cash, bankcard, cheque sales & cash & credit card returns. These total are reconciled by the associate executive to the cash register tapes, the total of the serially amount sales invoices & the return slips (Hansen, et. al., 2018). The assistant manager prepares a daily settlement report for the review of store manager.

The combined bills of one after the other ordered: The managers finally reviews the cash, cheque & credit card sales & then organize the daily bank deposit (including the credit card sales invoices). The manager makes deposit at bank & files validated deposit slip.

The bringing together of cash receipts & checks, bank cards, returns & cash register tapes is carried out: The cash register tapes, sales invoices & return slips are daily promoted to the Central data processing department at the corporate head office for processing  (Poole, et. al., 2015).  The processing division returns a daily sales & expenses movement inform to manager for evaluation.

Hence through such processing Rainbow Illusion’s sales transactions are being controlled.

Problems that Rainbow Illusion has avoided by incorporating the strength in the system for controlling sales transactions. 

Strength 1: The sale people are young & are on part time basis with incentive based on sales volume.

Problem Avoided: This avoids the problem of slow queue management i.e., the people in queue are serviced very fast as the sales person are young (Ceri, 2017).  Also paying them hourly basis with incentive helps to save cost & also promotes healthy competition.

Strength 2: Every 25 Stores make use of similar arrangement for calculating sales dealings.

Problem Avoided: This avoids the problem of the wrong transactions & relieves the agent which physically records his or her worker number & the exchange, adds up to the business receipt, ascertains the rebate when fitting, computes the business charge, & pre-pares the great aggregate.

Strength 3: The parting of sales people & cashiers.

Problem Avoided: This avoids the problem of the salesperson & cashier. They have loads of burden to manage accounts, make invoices, calculate sales & many more (Hwang & Kim, 2016).  The work has been distributed among them for the good management practices.

Strength 4: Company uses unsophisticated cash registers with four part sales invoice to record each transaction.

Problem Avoided: This avoids any sort of problem associated with training the new staffs. It also helps in delivering quick service to the customers.

Strength 5: The combined bills of one after the other ordered.

Problem Avoided: This avoids the problem of mismanagement. The manger reviews all the bills accordingly & prepares the daily bank deposit for each & every transaction.

Strength 6: The bringing together of cash receipts & checks, bank cards, returns & cash register tapes is carried out.

Problem Avoided: This avoids the problem associated with processing department. As they returns a daily sales & commission activity statement to manager for evaluation (Whaley & McJohn, 2017). 

Situational pressures in a company like Rainbow Illusion that would increase the likelihood of fraud.

While stealing company funds is the most usually thought of type of fraud, it’s not the only way workers can hurt business. Ana employee permanent enough demands can be ambitious to banned activities, whether it’s thefting money or exploitation other domestic arrangement (Katsikeas, et. al., 2018).  In the Rainbow Illusion Company, the two situational pressures that would increase the likelihood of fraud are: 

When the employee has a sudden sickness & need a large amount of cash for the treatment.

When an employee has been blackmailed or threatened (Personally/ professionally) the employee may be forced to commit a fraud.

Here are some examples of these situational pressures are:

  • Sudden terminate in income piece of the overall industry. 
  • Financial weight from extra plans that rely upon momentary monetary execution (Abeyratne & Monfared, 2016).
  • Intense strain to meet or surpass income desires or improve detailed execution. 
  • Significant income issues, strange trouble gathering receivables or paying payables. 
  • Heavy misfortunes, high or undiversified hazard, high reliance on obligation, or unduly prohibitive obligation pledges. 
  • Heavy reliance on new or problematic product offerings. 
  • Severe stock outdated nature or unreasonable stock development. 
  • Highly horrible monetary conditions (Inflation, retreat). 
  • Litigation, particularly the executive’s v/s investors. Looming business disappointments or insolvency. 
  • Problems with administrative offices. 
  • Unusual spikes in loan fees (Steinmeier, 2016).  
  • Poor or weakening money related issues. 

Situational pressure occurs because of decrement in market share. A single entity can experience these types of decreases. Pressure of impracticable budget is also cause of situational pressure. . This pressure is rapid when the bonus is sufficient part of the individual’s total redress. Situational pressure arises due to weak internal accounting control system and this situation occurs when an organization receipt system is overcharge from an acute spread of sales.

Reasons for companies would choose to install a distributed system rather than a centralized one. 

A few organizations would choose a distributed framework instead of a centralized one as centralized framework has low inactivity at that point brought together framework. In the Rainbow Illusion Company, as the distributed frameworks have low inactivity in light of high physical spread, consequently prompting less time to get a reaction. A group of ten machines crosswise over two server companies in essentially more lack tolerant than a private machine. Regardless of whether one server farm bursts into flames, reason would in any case work. Center applies accord conventions to concede to same qualities & exchanges (Hess & Cottrell Jr, 2016). The size of the appropriated framework may vary from a bunch of gadgets, to a great many PC. The interconnection system might be wired, remote or a mix of both. All hubs keep up their very own clock. In a distributed framework, centers collapse freely without significantly affecting the whole framework. In the result that one center comes up small, the whole framework without the explode center keeps on working. As in centralized framework, framework can come up short if the center loses availability as there is just a single central center. The unexpected disappointment must happen of the whole framework. On the off chance that the server centers discharge & there is no support, the straight away information will be lost. (Chapman, et. al., 2017).There is just a single server hub & because of accessibility reasons, it is wasteful & unprofessional to bring the server down for upkeep.

There are many benefits to install a distributed system rather than a centralize:

  • Inventory control – In distributed system company can control inventory with the help of inventory management. Inventory is minimum material orders based on the requirement of all other parties. 
  • Cost reduction – by adopt to centralize there would be need to charge on contigental expenditure. The need to spend more on new technologies and equipment is also eliminated. With these cost reduction company can set pricing strategies.
  • Better service of customer – by adopting a distribution system, a company will focus on its resources, it means facility will have highly skilled worker and the better quality of services will be offer to customers.

Conclusion

After the discussion based on the Rainbow Illusion Company, the processes, risks & internal controls. It has been realized that the strengths of the controlling sales transactions is necessary. As the problems avoided by the strength of company to control sales transactions has been discussed. The conditional pressures also been examined to analyze the increased likelihood fraud in the Rainbow Illusion Company. The distributed system & centralized system has been investigated as many companies used distributed system instead of centralized system. The sales of the company can be manages by the manger & the assistant manger which can deal with all the sales transaction done in the company & paid on their daily wages. They report all these happenings to the CEO of the company for better & secured growth of company.

References
  • Abeyratne, S.A. and Monfared, R.P., 2016. Blockchain ready manufacturing supply chain using distributed ledger.
  • Ceri, S., 2017. Distributed databases. Tata McGraw-Hill Education.
  • Chapman, J., Garratt, R., Hendry, S., McCormack, A. and McMahon, W., 2017. Project Jasper: Are distributed wholesale payment systems feasible yet. Financial System59.
  • Hansen, J.M., Saridakis, G. and Benson, V., 2018. Risk, trust, and the interaction of perceived ease of use and behavioral control in predicting consumers’ use of social media for transactions. Computers in Human Behavior80, pp.197-206.
  • Hess, M.F. and Cottrell Jr, J.H., 2016. Fraud risk management: A small business perspective. Business Horizons59(1), pp.13-18.
  • Hwang, S. and Kim, W., 2016. When heirs become major shareholders: Evidence on pyramiding financed by related-party sales. Journal of Corporate Finance41, pp.23-42.
  • Katsikeas, C.S., Auh, S., Spyropoulou, S. and Menguc, B., 2018. Unpacking the relationship between sales control and salesperson performance: a regulatory fit perspective. Journal of Marketing82(3), pp.45-69.
  • Katsikeas, C.S., Auh, S., Spyropoulou, S. and Menguc, B., 2018. Unpacking the relationship between sales control and salesperson performance: a regulatory fit perspective. Journal of Marketing82(3), pp.45-69.
  • Poole, T.S., Douglas, L. and Brolund, M.R., Capital One Financial Corp, 2015. System and method for fraud control. U.S. Patent Application 14/322,954.
  • Steinmeier, M., 2016. Fraud in sustainability departments? An exploratory study. Journal of business ethics138(3), pp.477-492.
  • Whaley, D.J. and McJohn, S.M., 2017. Problems and materials on secured transactions. Wolters Kluwer Law & Business.

Introduction

In the research the company is focusing on the innovation of the business through the use of the open data that is collected by the number of the person. The data can be collected and from the purpose of this the innovation can be done on the basis of the product and the other amount. The research is completed when all the question of the research are asked and amount to develop the good theory on the basis of the very person. Innovation in the business can lead to various amounts of changes in the business like the increase in quality of the product and the profitability of the company. It also helping in developing the company image in front of the other brands. It helps in developing high amount of creativity in the research and innovation. It helps the customers to make the choices accordingly towards the behaviour pattern of the company. It helps in bringing the amount of creativity in the organisation.

Research problem

Research problems face during the data collections which are needed to business.

  • Collection of the data source type 
  • Authentication of source/ department/ company etc
  • Type of data needs and their identifications
  • Identification of parameters collected
  • Information about sources of data for collection
  • Web-based data for data categorised

Hence these are the problem that can be faced by the researcher while researching the topic with the help of open data, the open data is the sources that include various sources such as internet surfing, government reports, open opinion that are recorded and presented in the online surface such as an interview and viewpoint on the business innovation. The opinion that is derived from various experts and the suggested theory that helps to make the research progressive and attractive. So for analysing the best sources will complicate the ideology and confuse the researcher whether to choose the subject out of a wide variety of alternative. The one more problem is that the data is valid or just an assumption or someone perception. So accuracy is another problem.

Research methodology

The random sample is selected from the different group of persons to study the product and helps in developing the business innovation with the use of the open and exact data.

Aims and objective

The research aims to describe “business innovation” through open data.

The objective of the research

  • To know the accuracy of the data that is collected for describing business innovation importance.
  • To create the platform for getting more opinion and perspective regarding the technologies and digital market advancement that leads to business innovation.

Literature review

According to the critic and the business leader they served business innovation to give importance to their customer needs and changing demand and simultaneously changing trend. The business entrepreneur focuses on the high creativity and innovation in the business worlds so that they will sustain themselves in the long run. In the words of many automobile companies, they say the innovation is the path of success nowadays in their viewpoint they are experimenting with the market and the with their product to create new trends for examples bypassing time the technologies advancement is very common but it comes into existence due to high thinking skills and discovering nature of the human being and the business professional. They just engage themselves in creating new worlds with innovation (Brasseur, et. Al.,2017).

According to the technological and mobile industries they are the great examples of the business innovation because they are people that intends to crates the generation of networks by changing routes and the targets they just focus on adopting new theories and strategies for providing more hi-tech experience with better speed and accessibility. In the words of many experts of the market researcher they say the vital and progressive innovation is taken places in the digital market.  The term digital denotes dynamism that means keep changing and spread the innovation and adaption all over the world (Parida, et. Al., 2019).

According to the general public point of view, many people are always curious in using new technologies and handling all the innovation whether it is in the mobile handset to smart-phones or the washing machine functioning the new version of any product excite the world with every change (Chuang, 2012). If the changes are not done by the company the people will not adhere their product regularly and even they do not bother but with help of innovative ideas and thinking even a led bulb will help to fight with bacteria.  By contrast with the above opinion and views some people especially the people of very old times do not accept the innovation more steadily because they seek time to get in touch and learn all the profound innovation. So in this literature review, the two opinions with different experience have been brought out that are convincing at their viewpoint (Shier and Handy, 2015).

According to the industry that deals inevery time innovation that is event companies. In the viewpoint of the event organizing companies, they require innovation in every aspect whether in digital format a designing format and staff management course of action they need innovation and creativeness while deciding the themes and the whole culture that carried out in the particular event without repeating any previous format seek new ideas and innovation. So for deciding all the things business innovation is important. Hence, it not only helps the staff but also releases loads of the burden from the top-level(Parida, et. Al., 2019).

Companies are adopting various theory and practices such as descriptive innovation and diffusion innovation for creating and enhancing management and organization staff innovation. These theories help the company to create and diversified the platform of innovation of the business that the particular company deals in. So in the viewpoint of various company and business schools, they thought of developing an organization by creating and implementing innovation theory for enhancing skills and knowledge and also to inbuilt analytical skills in man-powers (Shier, and Handy, 2015).

According to the online report that is presented by the standardize newspaper /magazine. They are in support of business innovation as innovation leads to the country progress and stand the country among the leaders of the world.  The countries citizen should emphasis on innovation adoption and developing their mindset as per the country is moving forward.  The country leads to progress if the people support their company in all sense that the country expected from their peoples.  The upcoming market is fully covered with the innovation and by 2025 the experts are saying the world is fully embodied with the innovative technologies and the new business era will arrive soon (Parida, et. Al., 2019).

For developing innovation in the country the government amends various policies and procedure to promote the courses that encourages the innovative skilled-based courses such data science courses and also  the courses that duration is not so long but deals in developing the skills regarding the upcoming market advancement such as data mining, research new technique, developing innovative thinking  skills by exercising various activities that indulge the students in putting attention towards their creation levels (Chuang, 2012)..

According to the management point of view, they seek business innovation for organizational growth and promoting the new policies and helps the employees in adapting the dynamicenvironment of the organization. In contrast with employee’s opinion, they are not ready to accept the sudden changes they feel frustrated and confused sometimes (Lianto, et. Al., 2018). In according to the employee’s viewpoint their consistency reduces because of business dynamism and innovation, some changes will be acceptable such as policies and time changes but if the changes appear with technologies and concerning job activities. So, that the management and employees viewpoint does not match because their working and technique are different (Lianto, et. Al., 2018).

According to the marketing managers their point of view on business innovation is very optimist because with the help of business models of innovation they are able to develop new strategy and adopt new technique of strategizing their company market, with the help of innovation an organization have various option to judge the market value and their investment ranking. The new era is full of multi-tasking worlds because competitiveness between the different companies is increasing day by day that indulges the marketing heads to research new technique and innovation to stand different in the market. The marketing heads also enhancing the way of scanning the competitor to prevent themselves and secure their market from the risk (Pino and Ortega, 2018).

For developing any new product the open data sources are very helpful in analysing the customer viewpoint and online feedback will give directions and problem resolving attitude towards the existing product model. The companies will analyse their product values in the market. The company will also pursue new product development by discovering the product necessity, types and price that attract the customer because all the point is considering the customer preferences and tastes (Sidorkin, 2015).

 According to the human resource manager, they say that innovation gives the direction to adapt and change the ethics and knowledge by the time for moving the business with the pace of time and generations. The viewpoint of human resource managers is to gather the employee’s mindset by pursuing a various activity that enables the human resource manager to know the needs and perception of the employees and to know the strength and weakness of the employees.  So that the innovation will affect differently to different peoples with different background some abide the decision and some accept it. Hence, the human resource manager is trying to say with the help of business innovation they can use a different innovative technique or activities the human resource manager may judge their employees capacity and abilities (Sidorkin, 2015).

As per the market leaders point of views the leader that adopt innovation model in their daily business content will be successful in every age of business but if the organization is not putting any stress in developing new strategies and following the traditional and old ones will never get succeed and does not sustain their company goodwill in the market because today ‘s societies and culture is changing day by day and the people are focusing to develop their standard of living and their quality by experimenting and purchasing  hi-tech technologies reduce their burden and to save time as well . So for getting all the sufficient product that resolve all the customer needs will get from implementing business innovation and preparing strategies that suit the today’s market study and helps to attain the objective (Fernandes Rodrigues Alves, et.al.,2018).

The company emphasis on language innovation because they know to deals with the outer world they should know the language to understand their way of business tactics and to build venture between the two countries.  So for resolving such kind of barrier, they are hiring the translator by investing heavy amount and it is also a part of business innovation as the business professional are aware of the future trends and preparing their present to strengthen their future presence. Hence language innovation is also the great things that any organization should adopt for reducing communication barrier and building a new relationship (Foss and Saebi, 2017).

The open data is also an innovative technology through that an organization can research many thought processes and can help them to innovate the one out of the data that are gathered from the open data technique. Through this source of data collection, an organization does not have to invest lots of paperwork they just need to tap the online surface and web browsers and the government proposal that helps to clear out the question for that the open data sources have been adopted. This source helps the company to clear their doubts and indulge them to gather deep knowledge regarding the subject that the survey is conducted. Hence through this organization will ensure the accuracy and select the appropriate data that is beneficial or relevant for the company purpose and also know the customer references and expectation (Brasseur, et. Al. 2017).

The business innovation helps the organization to design their product with innovation and give new shape and colour to the product for attracting customer and especially women are more attracted towards the product if the company offer any discount and free samples or any free product with the original product (Morrar, 2014). Women are focusing on the chances to grab the opportunity eagerly whenever it comes, it benefits the customer but the company too.  The decision is more innovative if the company know the problems that the customers are facing, for example, a cab company changes some policies in the pricing that if the customer is solo then they can reduce their cab cost by sharing the cab with another customer, and one more innovation they created providing bike services too that helps customer to save them money in one hand and also satisfied by using travel services. So that it is known as service innovation that helps the existing market needs to fulfil (Morrar, 2014).

In various countries, various innovation is taken places by companies that are running in a particular region. The wide variety of companies are situating their franchise in another country but the taste and preferences of another country are different as the previous countries where they already situate their franchise or venture (Suroso and Azis, 2015). To know all these things the company needs to adopt the business innovation and dynamism as they support the business to situate their business in any countries. For example, an automobile company ford they need to put some changes in their functioning and direction if they want to generate the lead for their product in Australia as the product should be according to Australia citizens and for building all the innovation they need to adopt business innovation theory and practices. Hence through this, they will judge the customer motive and their expectation and can able to scan the existing market values (Suroso and Azis, 2015).

According to the education sector viewpoint, they also thought that innovation in business is the need of today because if the business person will not experiment with their product then how the product innovation subject will become successful.  The educational ministry put lots of efforts to innovate their subject for enabling the student to become future leaders. The schools and college are a focus on the student educational plus analytical upbringing too. The thought process behind this is to transform the mindset of the students to logical and observational aspects, indulge the student on more practical activity with theoretical implication. So that in future if they are going to join any organization it will be easy for them to understand the organization by their observation skills and their practical skills helps to solve the urging problem that they faced in the future in an organization (Foss and Saebi, 2017).

According to(Link and Scott, 2013)small business point of views such as small scale restaurant and small scale hotel etc, they also thought that the business innovation is the impressive tools to sustain in the market. As for surviving in the market between the big company is very tough for the small entity companies but by aspiring innovative ideas and proposal, they too grab the market attention. Hence the business innovation will work out at every level of business and companies (Link and Scott, 2013).

Accordingto (Zia and Shafiq, 2017) business processed outsource companies that deals in tackling the problem of the overseas clients and the knowledge process outsources business they two thinks that the innovation and management is parallel to each other or they are saying directly proportionate because if there are good idea formation and innovation the management is automatically enhanced and travel simultaneously as per innovationimplementation. Thus, according to BPO and KPO firms, they thought the flow of processing and flow of knowledge will efficient if the business innovation is there that helps a business entity to change their proceeding time to time to reach the goals and objective (Zia and Shafiq, 2017).

Therefore to address the research problems the study helps to give the amount of research question and these are as follows

  1. What are the open data and their sources?
  2. What is required for open data? 
  3. What is the way of business innovation by open data?

The research helps in giving answers to all the questions that are asked in the research problem with the help of the different articles. It can be said that the innovation of the business can be done with the help of data.

References

Brasseur, T.M., Mladenow, A. and Strauss, C., 2017. Open business model innovation: Literature review and agenda for future research. Бизнес-информатика, (4 (42) eng). Retrieve from https://bijournal.hse.ru/data/2018/02/15/1162725891/1.pdf

Chuang, L., 2012. A Literature Review of Enterprise Environmental Technology Innovation. In Future Communication, Computing, Control and Management (pp. 187-191). Springer, Berlin, Heidelberg. Retrieve from https://link.springer.com/chapter/10.1007/978-3-642-27314-8_26

Fernandes Rodrigues Alves, M., Vasconcelos Ribeiro Galina, S. and Dobelin, S., 2018. The literature on organizational innovation: past and future. Innovation & Management Review, 15(1), pp.2-19. Retrieve from https://www.emerald.com/insight/content/doi/10.1108/INMR-01-2018-001/full/html

Foss, N.J. and Saebi, T., 2017. Fifteen years of research on business model innovation: how far have we come, and where should we go?. Journal of Management, 43(1), pp.200-227.retreive from https://journals.sagepub.com/doi/abs/10.1177/0149206316675927?journalCode=joma

Foss, N.J. and Saebi, T., 2017. Fifteen years of research on business model innovation: how far have we come, and where should we go?. Journal of Management, 43(1), pp.200-227.retreive from https://journals.sagepub.com/doi/abs/10.1177/0149206316675927?journalCode=joma

Hernández, R.J., Cooper, R., Tether, B. and Murphy, E., 2018. Design, the language of innovation: A review of the design studies literature. She Ji: The Journal of Design, Economics, and Innovation, 4(3), pp.249-274. Retrieve from https://www.sciencedirect.com/science/article/pii/S2405872618300534

Lianto, B., Dachyar, M. and Soemardi, T.P., 2018. Continuous innovation: a literature review and future perspective. International Journal on Advanced Science, Engineering and Information Technology, 8(3), pp.771-779. Retrieve from http://insightsociety.org/ojaseit/index.php/ijaseit/article/view/4359

Link, A. and Scott, J., 2013. Bending the arc of innovation: Public support of R&D in small, entrepreneurial firms. Springer. Retrieve from https://www.nap.edu/read/9985/chapter/14

Morrar, R., 2014. Innovation in services: A literature review. Technology Innovation Management Review, 4(4). Retrieve from https://timreview.ca/article/780

Parida, V., Sjödin, D. and Reim, W., 2019. Reviewing literature on digitalization, business model innovation, and sustainable industry: Past achievements and future promises. Retrieve fromhttps://www.mdpi.com/2071-1050/11/2/391/htm

Pino, R.M. and Ortega, A.M., 2018. Regional innovation systems: Systematic literature review and recommendations for future research. Cogent Business & Management, 5(1), p.1463606. retrieve fromhttps://www.tandfonline.com/doi/full/10.1080/23311975.2018.1463606

Shier, M.L. and Handy, F., 2015. From advocacy to social innovation: A typology of social change efforts by nonprofits. Voluntas: International Journal of Voluntary and Nonprofit Organizations, 26(6), pp.2581-2603.retreive from concordia.ca/content/dam/jmsb/docs/research/agre/Shivaang%20Sharma.pdf

Sidorkin, O., 2015. The impact of management quality on innovation performance of firms in emerging countries. CERGE-EI Working Paper Series, (555). Retrieve from https://www.worldscientific.com/doi/abs/10.1142/S1363919603000830

Suroso, E. and Azis, Y., 2015, May. Defining mainstreams of innovation: a literature review. In International Conference on Economics and Banking (iceb-15). Atlantis Press. Retrieve from https://www.semanticscholar.org/paper/Defining-Mainstreams-Of-Innovation%3A-A-Literature-Suroso-Azis/e3199fe020d78305907805200aed95dd92e72f15

Zia, S. and Shafiq, M., 2017. Innovation and knowledge management: A literature review and research framework. Journal of Quality and Technology Management, 13(1), pp.99-116.retrieve from http://pu.edu.pk/images/journal/iqtm/PDF-FILES/006-V_XIII_I,June2017.pdf

Abstract 

Fortescue Metals Group Ltd (FMG) is an iron ore company situated mainly in Australia. It was founded in the year 2003. The company comes under the industry of Metals and Mining. Its headquarters is placed in Perth, Western Australia. Fortescue Metals Group Ltd (FMG) deals in Iron ore, Steel, Gold, Copper and Lithium. It is one of the largest iron ore producers. Mainly fourth largest producer of iron ore in wide world. Elizabeth Gaines works as a (CEO) in the Fortescue Metals Group Ltd and Andrew Forrest being a (Chairman) combines to become the major shareholder in the company. The Fortescue Metals Group Ltd has many subsidiaries work under it. The mine company holds 87000 km2 area. The location where it is situated is Christmas Creek Mine, Pilbara region, West Australia. The company is listed company on the ASX Australia stock exchange with all well known companies. Fortescue Metals Group Ltd (FMG) has grown fastest heavy haul railways, advanced infrastructure and Fortescue company has its own iron ore carriers as well. Fortescue Metals Group Ltd is building a new succes story in the field of mining. Safety, values and empowerment of people are the basic goals, this Australian company holds. 

I. Introduction : 

The company selected is the fourth largest iron ore producer Fortescue Metals Group Ltd (FMG). The main purpose of my assignment is to research thoroughly through the Fortescue Metals Group Ltd. This purpose is carried so that we can learn about the success policies, financial performance and income statements of the above mentioned company. In this assignment, we will examine the main issues, underlying theories, performance measures used and the firm’s financial performance. We will get to know the capital structure, price earning ratios, non current assets and income statement. 

The  analyse of  Fortescue Metals Group Ltd trends in the last three years. The company’s performance analysis and success report. The company’s philosophies and methodologies about future.

The companies financial ratios show many ups and downs from the last two to three years.The annual reports has been taken from the Fortescue Metals Group Ltd (FMG) official website https://www.fmgl.com.au/. The annual reports will show the progressive approach company took and the successful strategies taken. The assignment has been structured strictly as per the norms and guidelines suggested and the assigned tasks. 

This assignment consists the real figures as per the Fortescue Metals Group Ltd website. The referred materials are latest and updated in the year 2019. The assignment consists of many useful information about the success, ups and downs, weaknesses and strengths. Here we will find out the details about the position and liquidity of Fortescue Metals Group Ltd. The share prices are checked on www.asx.com.au.

Financial analysis of fortescue metals group ltd. :

II. Financial Analysis of Selected Company  

2.1 The Fortescue Metals Group Ltd company deals in mine industry mainly iron ore –

The Fortescue Metals Group Ltd company deals in Steel, Gold, Copper and Lithium but mainly iron ore. It offers the iron ore to world wide. The importance of the mining in maintaining the comparative advantages of the company can be listed below –

  • Trained workers
  • Flexible arrangements of work
  • Staff incentives plan
  • 16 – weeks paid parental leave etc
  • Huge Mining sites
  • Full check on the safety measures for any miss happenings occur at the time of work.
  • Highly automated plants and machinery

All the other personal as well as professional benefits the Fortescue Metals Group Ltd provide to their staff and workers (Babalola & Abiola, 2013). 

2.2 Calculation and analysis of performance of Fortescue Metals Group Ltd by liquidity ratios –

According to the data collected from THE WALL STREET JOURNAL, the financial data obtained from current financial statements of Fortescue Metals Group Ltd for the past 3 years we will calculate the liquidity ratios know about the capital structure (Fortescue metals group ltd., 2019).

Assets

S.No,   Particulars 2016—17   2017-18   2018-19  
1 Current              
    Current Assets $    222,331.00  2.172304295 $    470,047.00  2.930668562 626006 3.047904221
    Current Liabilities $    102,348.00  $    160,389.00  205389  
2 Quick              
    Cash + Accts. Rec. $    193,894.00  1.894458123 $    405,946.00  2.531008984 517553 2.519867179
    Current Liabilities $    102,348.00  $    160,389.00  205389  
3 Debt-to-Worth              
    Total Liabilities $    102,448.00  0.424246942 $    166,869.00  0.300281262 205616 0.260982365
    Net Worth $    241,482.00  $    555,709.00  787854  
                 
INCOME STATEMENT RATIOS: Profitability (Earning Power)                
4 Gross Margin              
    Gross Profit $    151,006.00  0.274932772 $    464,349.00  0.503439027 713752 0.53251722
    Sales $    549,247.00  $    922,354.00  1340336  
5 Net Margin              
    Net Profit Before Tax $      52,299.00  0.095219455 $    415,711.00  0.450706562 283232 0.211314178
    Sales $    549,247.00  $    922,354.00  1340336  
                 
ASSET MANAGEMENT RATIOS: Overall Efficiency Ratios                
6 Sales-to-Assets              
    Sales $    549,247.00  1.596973221 $    922,354.00  1.276476726 1340336 1.349145923
    Total Assets $    343,930.00  $    722,578.00  993470  
7 Return on Assets              
    Net Profit Before Tax $      52,299.00  0.15206292 $    415,711.00  0.575316436 283232 0.285093662
    Total Assets $    343,930.00  $    722,578.00  993470  
8 Return on Investment              
    Net Profit Before Tax $      52,299.00  0.15206292 $    415,711.00  0.575316436 283232 0.285093662
    Net Worth $    343,930.00  $    722,578.00  993470  
                 
ASSET MANAGEMENT RATIOS: Working Capital Cycle Ratios                
9 Inventory Turnover              
    Cost of Goods Sold $ (285,729.00) -10.04778985 $ (458,005.00) -7.145052339 -590584 -5.4455294
    Inventory $      28,437.00  $      64,101.00  108453  
10 Inventory Turn-Days              
    360                     360  0.012659563                     360  0.005616137 360 0.00331941
    Inventory Turnover $      28,437.00  $      64,101.00  108453  
11 Accounts Receivable Turnover              
    Sales $    549,247.00  7.536940473 $    922,354.00  14.08367562 1340336 25.41017669
    Accounts Receivable $      72,874.00  $      65,491.00  52748  

Commnets

  • the current ratio has increased . This means the Fortescue Metals Group Ltd company is able to meet the short term liabilities successfully over the time. There is an increasing trend in the ratios.
  • According to the above calculation, it is clear that with the increase in quick ratio Fortescue company can easily pay back its current liabilities. In 2018 the quick ratio was less than 1, this means company was not able to pay back the current liability.
  • There is a certain growth in the cash ratio from the year 2017 to year 2019. But these ratios are less than 1. A ratio above 1 means that, the company can easily pay off its current liabilities with the cash and cash equivalent. Here the company have cash ratio less than 1 in all the years.
  • According to the above scenario, the Debt Equity Ratio is changing but very minutely. The low Debt Equity Ratio indicates less of borrowed funds and more of owner funds in the company. So here it is a good sign. There is a decreasing trend in the Debt Equity Ratio in passing years (Blum & Dacorogna, 2014).
  • As we can see there is a slight decline in the Debt to Total Asset Ratio in all the three years. This can be interpreted as the percentage of assets is funded through borrowing funds as compared with the percentage of principal resources that are funded by investors.
  • As we can see from the above proprietary ratios in percentage. here. When proprietary ratios is high that means the company is financially strong. Here it seems the company is dependent on debts in 2017 and 2019. The trend is not regular (Fortescue metals group ltd., 2019).
  • Above are the position of liquidity, solvency and trends analysis according to the important accounting ratios of Fortescue Metals Group Ltd.

2.3 Non-current Asset Analysis –

Non Current Assets are Fixed Assets such as Property, Plant, Equipment, Land & Building, Long-term Investment in Bonds and Stocks, Goodwill, Patents, Trademark etc.

Carrying Amount beg. of the year 2016-17 2017-18 2018-19
Plant and equipment 11456 11156 10995
Land and buildings 849 796 744
Exploration and evaluation 772 813 857
Assets under development 227 291 301
Development 3563 3437 3292
Depreciation
Plant and equipment 4521 5478 6464
Land and buildings 257 316 412
Exploration and evaluation 0 0 0
Assets under development 0 0 0
Development 1052 1259 1448
Carrying Amount end of the year
Plant and equipment 11156 10995 10690
Land and buildings 796 744 650
Exploration and evaluation 813 857 539
Assets under development 291 301 889
Development 3437 3292 3303

Here, in the year 2019 the amount of non-current assets has increased as compared to the last two years that is 2018 and 2017. This increase means the Fortescue Metals Group Ltd company can turn their assets in to cash within 1 year as per the date mentioned in companies balance sheet (Fortescue metals group ltd., 2019).

2.4 The scenario analysis as per the information given –

Averag Price $25 
Units to be sold 450000
Life 4 years
Equipmnet Cost $2,500,000 
Residual Value $500,000 
Working Cpaital $800,000 
Variable Cost $15   
NPV Current Case
Years 0 1 2 3 4
Equipmet Cost 2500000        
Sales   11250000 11250000 11250000 11250000
Working Capital   $800,000  800000 800000 800000
Variable Cost   6750000 6750000 6750000 6750000
Residaul Value         $500,000 
Cash Fixed Cost   450000 450000 450000 $450,000 
Profit Before Tax   $3,250,000  $3,250,000  $3,250,000  $3,250,000 
Tax   975000 975000 975000 975000
Profit after Tax   $2,275,000  $2,275,000  $2,275,000  $2,275,000 
Discounted Values 1 0.89285714 0.79719 0.71178 0.63552
Discounted Cash Flow 2500000 $2,031,250  $1,813,616  $1,619,300  $1,445,804 
Outflow 2500000
Inflow 6909969.76
Net Present Value 4409969.76
Averag Price $20 
Units to be sold 360000
Life 4 years
Equipmnet Cost $2,500,000 
Residual Value $500,000 
Working Cpaital $800,000 
Variable Cost $18   
NPV Worst Case
Years 0 1 2 3 4
Equipmet Cost 2500000        
Sales   7200000 7200000 7200000 7200000
Working Capital   $800,000  800000 800000 800000
Variable Cost   6480000 6480000 6480000 6480000
Residaul Value         $500,000 
Cash Fixed Cost   550000 550000 550000 $550,000 
Profit Before Tax   ($630,000) ($630,000) ($630,000) ($630,000)
Tax   -189000 -189000 -189000 -189000
Profit after Tax   ($441,000) ($441,000) ($441,000) ($441,000)
Discounted Values 1 0.892857143 0.79719 0.71178 0.63552
Discounted Cash Flow 2500000 ($393,750) ($351,563) ($313,895) ($280,263)
Outflow 2500000
Inflow -1339471.06
Net Present Value -3839471.06
NPV Best Case
Years 0 1 2 3 4
Equipmet Cost 2500000        
Sales   16200000 16200000 16200000 16200000
Working Capital   $800,000  800000 800000 800000
Variable Cost   6480000 6480000 6480000 6480000
Residaul Value         $500,000 
Cash Fixed Cost   350000 350000 350000 $350,000 
Profit Before Tax   $8,570,000  $8,570,000  $8,570,000  $8,570,000 
Tax   2571000 2571000 2571000 2571000
Profit after Tax   $5,999,000  $5,999,000  $5,999,000  $5,999,000 
Discounted Values 1 0.892857143 0.79719 0.71178 0.63552
Discounted Cash Flow 2500000 $5,356,250  $4,782,366  $4,269,970  $3,812,473 
Outflow 2500000
Inflow 18221058.73
Net Present Value 15721058.73

Interpretation on the sensitivity

Selling price : 9055951 = .19

  450000*35*3.037

Variable Price = 9055951 = .44

  450000*15*3.037

Fixed Cost = 9055951 = 6.63

  450000*3.037

2.5 The latest share or bond issuance by the fortescue metals group ltd 

The Fortescue Metals Group has issued coupon bonds recently. FMG Resources AUG 2006 is the issuer. The company has issued bonds in the form of Registered documentary bonds. It was an open subscription. It is an international bonds (Dorina, et. al., 2012).

The Company has been listing in Australia stock exchange as Fortescue FMG.

2.6 Calculation of the pe ratios and share price movement of the fortescue metals group ltd –

Price earning ratio has been declined to 46% last year in 2018. Up to the year 2019, the price earning ratio has gone up to 40%. The Operating income of the company is A$2.477 Billion in the year 2018 and the Net income results in A$1.134 billion in the year 2018 (Fortescue metals group ltd., 2019).

Price Earning Ratios = Market price / Earning per share
                          2019 2018 2017
Net income              4456 1,134 2,775
Earning pae share        1.44 0.36 0.89

The present PE ratio of Fortescue Metals Group ltd is 22.5%. If the pe ratio is high, the company is a growth firm and vice versa (Babalola & Abiola, 2013).

The last recorded price of share of FMG was marked at 8.950. The share price movement is watched out as 0.185 2.11% .

Recommendation Letter – 

As company took a comprehensive examination and analysed the firm’s financial performance from the updated financial statements of the Fortescue Metals Group Ltd. Being an investment analyst, I would recommend the investor to invest in Fortescue Metals Group Ltd. This company is performing well in the year 2019 and can write many success stories in the upcoming years. The share price fluctuations are not high or low. The investors can gain good returns from Fortescue Metals Group Ltd in near future.

Conclusion 

The assignment is done with the fortescue metals group ltd .The company profit statement has been studied to find out the ratios of the company. This is finding that the company had making profits or not. The research will be useful to the shareholders to find whether to invest in the company or not. Thaw Company had made a successful issue of shares whose report had been summarised above. The ratios are done to better understanding of the report. All the current ration and the liquidity ratio are check to find the company had made profits in current year or not. The written down method of depreciation had been followed by the company. The life of the assets and the scarp value is as per the market value and as per the recommendation of law. The calculation of NPV is done to find pout whiter the project should be adopted or not. The company had made all the conclusion of worst and nest case and the sensitivity is done to find out which variable are more sensitive than others. 

References

Babalola, Y. A., & Abiola, F. R. (2013). Financial ratio analysis of firms: A tool for decision making. International journal of management sciences1(4), 132-137.

Blum, P., & Dacorogna, M. (2014). DFADynamic Financial Analysis. Wiley StatsRef: Statistics Reference Online.

Christensen, T., Cottrell, D., & Baker, R. (2013). Advanced financial accounting. McGraw-Hill.

Dorina, P., Victoria, B., & Diana, B. (2012). Aspects of company performance analysis based on relevant financial information and nonfinancial information. The Annals of the University of Oradea, 956.

Fortescue metals group ltd. (2019). About us. [Online] Fortescue metals group ltd. Available at https://www.fmgl.com.au/docs/default-source/annual-reporting-suite/fy19-annual-report.pdf. [Accessed on 10.09.2019]

Fortescue metals group ltd. (2019). About us. [Online] Fortescue metals group ltd. Available at https://www.fmgl.com.au/docs/default-source/default-document-library/fy2017-annual-report.pdf [Accessed on 10.09.2019]

Fortescue metals group ltd. (2019). About us. [Online] Fortescue metals group ltd. Available at https://www.fmgl.com.au/investors/asx-announcements# [Accessed on 10.09.2019]

Executive summary

In this report the discussion is based on the motivation and the content theories of motivation. The assignment describes about the various theories of motivation and the critics is shown against it. The whole assignment is based on the motivation and its theories. The motivation is very important in the organisation because it helps the organisation to boost the morale of the employees that in turn will help in the increase in the production and the efficiency in the business. the assignment also gives the brief about the difference between the content theory and the process theory of motivation and how the process theories. The various theories of motivation that have been discussed in this assignment are the Maslow’s theory, Herzberg theory, Mc Greg or theory etc. therefore, it can be said that assignment highlights the detail about content theories of motivation.

Motivation: content theories general framework

Difference between the content theory and the process theory:

The difference between the two theory is that the content theory focuses on the reasons that is based on changing the human needs whereas the process theory focuses on the psychological process that aims to affect the motivation (Aydin, 2018). Both these theories are related to the motivation concept that is used in the organisation.

Content theory gives the reasons for motivating the employees or the individuals whereas the process theory determines the effect of the behavioural patterns in fulfilling the expectations of the employees or the individuals in the organisation.

The content theories include Maslow’s hierarchy of needs, Herzberg’s two factor theory etc. whereas the process theory includes the reinforcement theory, expectancy and the goal setting theory.

Various process theories have been reduced to the content theories because Vroom believes that human behaviour are rational. There are certain dysfunctional thoughts that aims to affect decision making process, this can only be achieved when the content theories of needs have been fulfilled by the organisation.

Maslow’s theory of motivation

The Maslow’s hierarchy of needs is the motivation theory that is used in most of the organisation to motivate the employees. The motivation theory of Maslow is depicted through the five tier model of human needs. The five steps in the Maslow’s theory of motivation are:

Physiological needs 

The physiological needs include the things that are necessary for our survival. These needs include the food, water, breathing etc. (Hattangadi,2015). these physiological needs also includes the shelter and clothing.

Safety needs

The second level of the hierarchy of needs includes the basic security and the safety needs such as the financial security, health and wellness and the safety against accidents and injury.

Social needs

The social needs of the hierarchy model include the love, acceptance and belongings. The various things that satisfy these needs are friendship, family, community group and religious organisations.

Esteem needs

When the three upper level needs are being satisfied then comes the need for the appreciation and respect for the oneself. At this point of time, it become important to gain respect and appreciation of others in the organisation.

Self-actualisation

This level of need is the last level of the Maslow’s hierarchy level. at this pint of time it is assumed that needs of human beings has reached the full potential levels.

(Source: Psychology Today, 2019)

Criticism of Maslow’s theory

The criticism against the Maslow’s theory of motivation are:

Needs do not necessarily follow a hierarchy. It is believed that according to the various research done it is depicted that the levels of needs in this theory is not in the proper hierarchal order.

The second criticismthat is givenagainst this theory is that this theory is very difficult to be tested. The best example is of the testing of the self-actualisation needs, how one can test the last limit of needs of the people (Yusoff et. al., 2013). However, through this it can be said that though the Maslow’s hierarchy of needs is the powerful motivators of human behaviour, but the hierarchal order that the Maslow described is very difficult to be followed.

Hertzberg’s theory of motivation

The Herzberg theory of motivation was proposed in 1959. According to this theory there are two factors thatresults in the satisfaction and the dissatisfaction of the employees in the organisation. The two job factors classified by the Herzberg are hygiene factor and motivation factor.

Hygiene factor

The hygiene factors are an essential job factor that is necessary for the motivation in workplace. If the hygiene is not present in the organisation, then it may lead to the dissatisfaction among the employees. The hygiene factors are considered as the physiological needs that every individual want and expect to be fulfilled by the organisation. Hygiene factor includes company policies, physical working conditions, interpersonal relations etc.

Motivational factors 

The second factor that is considered to be important for satisfying the employees is the motivational factors. These factors are considered to be important for work. These factors are considered to motivate the employees for the superior performance of the employees. These are the reward giving factor that helps the employees to get motivated and increase their performance. The motivation given by employer to their employees helps in improve the performance of the work and employees also feel that they are been valued.

Criticism 

The critics against this theory is that the Herzberg theory of motivation does not take into account the all the factors that result in the dissatisfaction among the employees. It has been criticised that hygiene and motivator are not only the two factors that cause the dissatisfaction or satisfaction but there are lot more (Alshmemri et. al., 2017). The two factor theory does not consider the situational variances. The Herzberg thought of giving the correlation between the satisfaction and the productivity but the research conducted shows that the theory of Herzberg focused on satisfaction of the employees and ignored productivity. This theory of motivation does not take into consideration blue collar workers, and despite of such limitation it has been broadly accepted.

McGregor’s theory of work motivation

The theory of work motivation was developed by the social psychologist Douglas McGregor in 1960. The two contrasting theory was developed by McGregor that is theory X and theory Y (Rajhans,2012). these two theory of work motivation was explained in his book” The Human Side of Enterprise”.

Theory X 

The first theory developed by McGregor is theory X. in this theory it is assumed by managers that the employees are unmotivated and they are not willing to complete their task. This theory considers the reward or punish netmethod that can be used by the mangers to make sure that work is complete. This style of management assumes that the workers:

  • Dislike their work.
  • The employees need proper direction.
  • Have to be controlled and threatened to complete the work.
  • Need to be guided at every step of their work.
  • Needs to get reward to achieve the goals so that the employees get motivated.

this theory of work motivation developed by McGregor has gone out fashion but it is adopted nowadays also. This theory considers the reward or punishmentmethod that can be used by the mangers to make sure that work is complete.  This because the big organisations find it difficult to avoid this theory because of the large number of people in the organisation and the strict deadlines needs to be followed by them. to achieve this the mangers needs to reward or threatens the employees so that the work in the organisation is complete and the deadlines have been meet in the organisations.

Theory Y

According to this manager have the positive attitude towards the people working in the organisations.  The decentralized and participative approach is being used by the managers in organisation. This helps in building the more collaborative and trust based relationship among the mangers and the team members (Sailer et. al., 2014). The people of the organisation are motivated to develop their skills and to improve their abilities so that the employees can do their work without any guidance. This theory of motivation gives the employees opportunities for promotion. Through this approach the managers show the full faith in the employees and believe that work will be done on time with full efficiency and productivity. This style of management assumes that the workers are:

  • Involved in the decision making.
  • Happy to work on their own.
  • Self-motivated to complete the work.
  • Have the ability to solve the problems creatively.

The theory Y of motivation is very much popular in organisations. This approach helps employees to get the meaningful career along with the money (Mayer,2014). Therefore, it can be said that the theories of Mc Gregor are very essential and are used as the best approach to build the effective relationship between the employees and the managers. The people of the organisation are motivated to develop their skills and to improve their abilities so that the employees can do their work without any guidance. This theory of motivation gives the employees opportunities for promotion.

Behavioural science research expects

It is believed that better understanding of the science on the pay and reward structures can help in increasing the employee’s motivation. The behavioural science of reward report shows that the money always does not help in motivating the employees. The report also shows that:

By taking into consideration the reward structure, organisation can built the more control over factors that helps to motivate employees.

The various alternative forms of rewards can be used by the mangers to motivate the employees such as employee award scheme (Ganta, 2014). There are varioustheir factors for motivation such as support from management, incentives, appreciation that helps the employees to feel valued in the organisation.

Therefore, it can be said that as per the behavioural science research money rewards are not everything they are not only the motivating factors that motivate the employees but this also depicts that the financial incentive is the thing that can dissatisfy the employees. Therefore, the organisationshould have the proper reward structures in the organisation that can help to build more control to motivate the employees.

Criticism

The criticism on the behavioural science research expect is that it takes into consideration only money as the motivating factor. The various other factors are not taken into consideration. It’s not only the money that helps to motivate the employees. If employees have been given the handsome amount of salary but are not been motivated or encouraged the they will not be able to work in the organisation (Kaur, 2013). This will lead to creating problem in improving the efficiency of employees. There are variousother factors for motivation such as support from management, incentives, appreciation that helps the employees to feel valued in the organisation.

Implication of Hofstede’s work:

According to the Hofstede’s culture is an essential element for motivating the employees. It is believed that dimensions of Hofstede’s are considered to be better, therefore, various motivation theories mentioned above should consider these dimensions to motivate the employees in an alternative way. There are variousother factors for motivation such as support from management, incentives, appreciation that helps the employees to feel valued in the organisation. For example, if the employee wanted to be motivated in the organisation to work in group can not only be achieved by the self-achievement and independence but this also needs the good corporate culture that will help to motivate the employees. Therefore, it can have said that Hofstede’s theory needs to be considered to find an alternative way to motivate the employees in the organisation. 

References

  • Alshmemri, M., Shahwan-Akl, L. and Maude, P., 2017. Herzberg’s two-factor theory. Life Science Journal14(5), pp.12-16.
  • Aydin, O.T., 2018. The impact of theory x, theory y and theory z on research performance: An empirical study from a Turkish university. IJAME.
  • Ganta, V.C., 2014. Motivation in the workplace to improve the employee performance. International Journal of Engineering Technology, Management and Applied Sciences2(6), pp.221-230.
  • Hattangadi, V., 2015. Theory x & theory y. International Journal of Recent Research Aspects2(4), pp.20-21.
  • Kaur, A., 2013. Maslow’s need hierarchy theory: Applications and criticisms. Global Journal of Management and Business Studies3(10), pp.1061-1064.
  • Mayer, R.E., 2014. Incorporating motivation into multimedia learning. Learning and Instruction29, pp.171-173.
  • Psychology Today, 2019. Our Hierarchy of Needs. [Online] Psychology Today. Available at: https://www.psychologytoday.com/us/blog/hide-and-seek/201212/our-hierarchy-needs. [Accessed: 11 September 2019].
  • Rajhans, K., 2012. Effective organizational communication: A key to employee motivation and performance. Interscience Management Review2(2), pp.81-85.
  • Sailer, M., Hense, J., Mandl, J. and Klevers, M., 2014. Psychological perspectives on motivation through gamification. Interaction Design and Architecture Journal, (19), pp.28-37.
  • Yusoff, W.F.W., Kian, T.S. and Idris, M.T.M., 2013. Herzberg’s two factors theory on work motivation: does its work for todays environment. Global journal of commerce and Management2(5), pp.18-22.

1. Introduction

Over the past few years, the demand of wine in the Indian market has increased with a smooth pace and now the consumers in the industry are focusing on trying and tasting different varieties of wine available in the country. It can be expressed that rose, sparkling and white are some common varieties of wine which are highly consumed in the Indian market. Traditionally red wine was the most common category of wine which was consumed by India but with the passage of time, the demand of other varieties of wine has also increased to a great extent (Mehta and Banja, 2018). 

Considering the case of the Indian market, it can be expressed that increasing awareness of wine as a drink which enhances health and wellbeing is the most critical factor which has resulted in increasing the overall consumption of wine among masses. Nowadays, Indian consumers prefer wine as a drink which has wide ranges of positive health-related benefits if consumed in an appropriate manner or level. Over the past few years, a 25% annual growth rate has been witnessed by the wine industry and the growth rate can be termed as satisfactory to a great extent. Apart from this, the increasing popularity of Vineyards as a place for tourism and growing disposable income of people in the country are some other factors responsible for the growth of the wine industry in India. 

On the other side of this, it can be argued that in a country with a population of more than billion, there are only a few million consumers of wine. It means that strong and aggressive marketing is still required to make wine popular in the Indian market.  

In terms of average cost, it can be asserted that a bottle of 750 ml of wine cost between 1500 to 2500 INR depending upon the brand name and ingredients. Furthermore, Sula Rasa is the wine which is most commonly consumed in the Indian market and it is a domestic brand manufactured in the region of Nashik Valley India. In terms of consumer profit, wine in India is mostly consumed by people living in urban areas and the one who falls under the middle and higher income level of the societies. 

Furthermore, upper middle-class urban consumers are the most important target market of the wine companies in the country. The consumption of wine among both male and female is increasing in their category (Insight – India’s growing thirst for wine, 2019). Majority of the wine sales in the country accounts to red wine and white wine and by the end of 2020, it is expected that the overall consumption of wine in the Indian market will reach 8 million. The city areas of Delhi and Mumbai are the one which is the largest consumers and dominating markets for wine. 

2. Size of Delhi in terms of the wine industry

Delhi is the capital of India and it can be expressed that Delhi is the second largest consumer of wine in the country. The overall wine sale within the capital is growing with a very good pace and the state has witnessed 41% growth in wine sales from the year 2010 to 2011. In India, Mumbai is the state which is the highest consumer of wine whereas the rate of wine consumption is higher in Delhi in terms of consumption of international wines. The people living in Delhi are more interested in consuming the international brands and flavors of wine as compared with the domestic wines (Saran raj et al. 2017). 

Delhi also has higher prosperity level in terms of spending on wines in comparison with other states and cities of the country. The selected marker i.e. Delhi is also considered as the huge market which can provide ample opportunities for growth and development to the wine industry. The young population in Delhi is increasing at a rapid pace and this fact also indicates that there are adequate growth and development opportunities present in Delhi. The statement can be justified by the fact that young people in the country are the biggest consumer of wine and thus, the growing and increasing young population in Delhi can be termed as a potential growth opportunity. 

In comparison with other alcohol categories such as Whisky and Rum, the consumption of wine is considered as more stylish and sophisticated and this can be termed as another major reason because of which the preferences and consumption of wine in Delhi is increasing with a very good pace (Gawande et al. 2017). Considering the case of Delhi, wines are now even making their way to parties, different events, family functions and marriages. The women in Delhi are also a major segment which is directed towards the purchase of wine. Most of the women are buying categories of wine with an objective to gift the same to other women or individuals and this is further enhancing the sales of wine in Delhi.

It has also been identified that Delhi is holding 10.2% of the total market share of the wine consumptions in the country. The increasing upper middle class and urban population in the state is also a major reason because of which Delhi is considered as one of the most potential markets for the wine industry. Delhi is also treated as the second most happening and potential place for the wine market or industry and this is because of the increasing demand for wine in the state. 

It has been identified that over the past few years, Delhi has witnessed a drastic change in areas such as consumer lifestyle choices and demand for different varieties of alcohol. Furthermore, wine is now becoming one of the most favourite and most preferred alcoholic drinks in pubs and restaurants of the state (McIntyre et al. 2016). The market of wine in Delhi is expanding with a very good pace and there are wide ranges of factors responsible for the same. For example, special occasions such as Vinitaly India 2007 are responsible for making wine as a drink more and more popular within Delhi. The retail sales in the state have certain restrictions and therefore, most of the wine sales in Delhi are coming from the hotels and embassies. The Bars, clubs and hotels in the state have been provided with a license to serve or sell wine to the customers. 

On the other side of this, it can be argued that because of the restriction of carrying out marketing and promotion of alcoholic drinks to mass media in the state, the seller of wine is now available with limited tools and techniques of promotion (Jones and Grandjean, 2017). Furthermore, on premises marketing and in shop advertisements are the most common form of promotion which are allowed and which are used by sellers of wine in Delhi. The sellers are also required to obtain different license to sell wines and some common licenses are retail vend, hotel room service, hotel bar etc.     

3. Wine in general 

Delhi is importing wines from different domestic and international players with an objective to satisfy the need and demand of people in the market. Furthermore, Maharashtra, Andhra Pradesh, Karnataka and Himachal Pradesh are some states which are indulged into the manufacturing of wine and supplying the same to Delhi. Furthermore, Grover Vineyards, Heritage Grape Winery, Hampi Heritage Winery, Pampasar Distillery Ltd and Le Meridien distillery are some major wineries which are supplying wine into Delhi (Wine companies in India, 2019). Apart from this, Munjral Brothers, Dhall Group, Hema Connoisseur Collection, Brindco Sales Limited etc. are some other players which are supplying different varieties of international wine in Delhi (Wine Importers in India, 2019). 

Consumer preferences and expectations also play a vital role in the success and growth of entire industry and this is one of the most important reasons because of which businesses are encouraged to take care of consumer need and preferences in the best possible manner. It has been identified that at present the awareness of consumers in Dehli is limited in the context of wine and at the same time, factors such as consumption of wine and awareness of the same are directly linked with each other (Durand and Khaire, 2017). Increasing awareness of wine is directly resulting in increasing the level of wine consumption in the state. 

On the other side of this, the consumer behaviour in the state is also directed toward consumption of wine because it provides wide ranges of health-related benefits. Red wine is still the most consumed variety of wine among people in Dehli and the reason behind this is that preferred taste of red wine. In addition to this, it has also been identified that at present the wine market of Delhi is dominated by international wines (Krishnamurthy et al. 2016). Here, most of the international wines consumed in the state are imported from the market such as Germany. 

A small percentage of wine consumers in Dehli prefer domestic wine over international wines because the domestic wines are easily and widely available at low prices. It has also been identified that most of the consumers in Dehli are not even aware of the basic origin of the wine which they prefer to drink.

In terms of consumer preferences, people in Dehli usually prefer to drink one to two glasses of wine every day because if the health-related benefits associated with the same. Individuals in the state also prefer to consume wine on special occasions or festival with a purpose of celebration (India Wine Insider, 2017). 

4. Market size and buyer behaviour

The size of the wine market in Dehli can be termed as very large and potential because the numbers of wine consumers are increasing in the state with a very good pace. However, more than 90% of the overall wine market in the state has been dominated by domestic players in the country. Apart from this, France, Italy and Germany the major international suppliers of wine in the Dehli and the demand for international wines are also increasing among the consumers (Joshi et al. 2017). The market is very potential because at present there are few domestic and international players operating in the market and the overall degree of competition is also moderate. From the past many years, whiskey and Rum have dominated the domestic alcohol market of Dehli but now wine is giving intense competition to these products. 

Here, red and white wines are the most famous categories of wine which are consumed by people in Dehli. It can be asserted that people in the upper middle and upper-income level of societies are the ones who prefers to buy and consume wine. However, it can be argued that in the present scenario, the consumption of wine has not remained restricted to one particular market segment and wines are now preferred by diverse market segments. For example, women in Dehli are purchasing and consuming wines more in comparison with the males (Gouveia et al. 2018).  Youngsters in the state are also a major market segment which is contributing to the growth and increasing sales of wines. People are also purchasing wine in the state to impress others and show their status as wine nowadays is considered as a symbol of style and class. 

According to the current trend in Dehli, expensive varieties of wines are now poured during the business meetings and different types of get together parties just to impress others (Jones and Grandjean, 2017). People with monthly income of more than 30,000 INR are also able to afford the local varieties of wine and this is also a major factor which is contributing a lot in the increasing consumption of wines in the state. 

 Price of wine is considered as the main and most important factor which is affecting the behaviour or buying decision of wine consumer in Dehli. Most of the buyers in the state are making a decision of purchase based on the price of wine and therefore, the price is the biggest factor influencing the buyer decision in comparison with other factors such as quality, brand and ingredients. 

The consumption of wine in Dehli is also increasing within the households and it can be expressed that wine is now getting cultural acceptance in most of the part of the state. Wine drinking has become a day to day trend in many homes within Dehli and cultural acceptance has been provided to wines because of the health-related benefits associated with the same (Mehta and Bhanja, 2018). After carrying of the study of consumer behaviour in Dehli in the context of wine, it has also been identified that gifting of wine is also becoming a more and more popular trend with the passage of time. 

5. Promotion of wine 

The promotion has emerged as the biggest and most critical challenge for the entire wine industry or market of Dehli. The statement can be justified by the fact that alcohol advertisements have been banned by the government not only in Dehli but in the entire country. The international and domestic producers and suppliers of wines are now available with limited options and techniques to carry out marketing and promotion of different wines and related products. The local and international companies are struggling a lot in terms of promoting wines and this can be termed as the biggest challenge in the entire market. 

On-premises marketing and in shop advertisements are the two easy and most common forms or techniques of promotion which are taken into consideration by the wine businesses to promote their products and services (McIntyre et al. 2016). The restaurants and hotel, bars and clubs are provided with an opportunity to advertise new flavours and varieties of wines within their premises. On the other side of this, the wine shops are carrying out advertisement and promotion of different wines by displaying ads within the shops. 

The awareness can be created only among the walking customers and at present, no promotion tool is available for the wine businesses which can support in creating awareness and promoting wines among the mass audience in Delhi (Saranraj et al. 2017). It has also been identified that word of mouth is another major tool of promotion which is supporting the growth and development of wine in the state. The new flavours and varieties of wines are promoted by individuals through word of mouth and this is further resulting in increasing the sale of wine in Dehli. 

Businesses are emphasizing a lot on techniques such as word of mouth because there are limited options and alternatives of promotion available. People in Dehli are also purchasing and consuming different varieties of wines based on the suggestions and recommendations provided by their friends, family members and colleagues. Sula Wine is very popular among the people in Dehli and word of mouth can be termed as the biggest factor responsible for the popularity of Sula in the State. 

Most of the people even today suggest Sula as the best wine to drink in Dehli. On the other hand, Doctors have also emerged as a medium through which the promotion of wines in Dehli is now carried out. Nowadays, many doctors are recommending their patients to drink wine in a limited amount on a daily basis to remain healthy. The wine companies are approaching doctors to promote their products as a healthy drink for well being.  

6. Distribution channels for wine 

Distribution channel in the wine sector is a complex process, it is mainly focused on the concept of indirect distribution. In this, the company focuses on the selling through intermediaries so that corrective measures can be taken into account. Marketing channel of indirect selling is considered as a channel that allows having optimum utilization of the product and resources. In this, indirect process the producer contact to agent and distributor so that movement of the product can be taken into account (Taylor and Taylor, 2017). After this, the goods are being sold to retailers and then to customers. In addition to this, it can be said that the chain of intermediaries allows moving the products in an accurate manner. The consumer can easily access to the wine products in an accurate manner. The indirect channel of distribution involves the product passing with reference to the additional steps. It allows having produced goods movement via distributors to the retailers. 

Indirect channel adopted by the wine sector is reliable on the intermediaries. The performance of indirect channels impacts the operations of the wine sector in a diverse manner. It is also known as a wholesale distribution channel. The most challenging part of indirect distribution channels is that another party has to be entrusted with the manufacturer’s products and customer interaction. It has also been witnessed that the indirect channels also considered a simple way to move the products in the market. It allows increasing the cost to the consumer and slowing down the delivery (Taylor and Taylor, 2017). Third party involvement is being promoted in the distribution channel and it allows accomplishing the objectives inadequate manner. The indirect channel of distribution also enhances the focus on the core business and distribution aspects can be outsourced in an accurate manner. 

Another benefit of the indirect distribution is to have easy reach to the customers and allow saving the cost of infrastructure for a manufacturing firm. It also improves the sales force values in an accurate manner and assists in meeting standards. The distribution channel adopted by sector is also considered as three-tier system so that better movement of wine product can be taken into account. It allows passing through middle man and ensuring the sustainable values (Ray and Chowdhury, 2015). It also indicates that the product does not sell directly to the bars, liquor stores, or grocery stores. It is a distribution channel that works on the basis of relation relationship. Distributors in the sector are also used to maintain the refrigerated warehouses so that product can be stored properly. Due to middle man practice, the system allows having increased in the prices of wine. The higher prices are force society to not invest more on the consumption of wine. 

However, it has been witnessed that the system is not having efficient working because of the middle man. Many of winners are contesting in the system that also impacts the overall operations in a negative manner. The distribution system in the Delhi is highly complex because our state measures are needed to be followed properly. Any kind of violation regarding commerce clause is also needed to be followed properly to accomplish the objectives. 

7. Market research 

In addition to this, it can be said that importers and exports are also key aspects that need to be understood by businesses. Companies in Delhi are having an import of wine from different foreign nations. It has been witnessed that the majority of wine products are being imported by companies in Delhi. Classification of key importers can be as Munjral Brothers (Distribution) Pvt. Ltd, Dhall Group, Hema Connoisseur Collections (P) Limited, Brindco Sales Limited and United Spirits Limited. These are the key players that import the wine from other nations so that the same can be served in Delhi. Top wine importers in the sector are from the developed nations (Bargain et al.  2018). Classification of key nations can be as United States, United Kingdom, Germany, China, Japan, etc. Highest importer of the wine products in Delhi is from the United States. It allows accomplishing the standards in an accurate manner and leading business to better success. 

However, the export in Delhi is nothing because there are no production plants in the Delhi state. All the wine yards are being set up by companies in Maharashtra and Bangalore. It indicates that 0 % of export is being recorded from Delhi. It is also a key reason that the pricing of wine products in Delhi are high that affects the overall growth of the sector. Infrastructure is not proper in terms of wine production that also enhances the ratio of wine import in Delhi. 70 per cent of the wine in Delhi is being imported from other nations that are also indicates that infrastructure development must be referred properly (Carroquino et al. 2018). It has been noticed that Delhi wine sector is having great opportunities in the competitive values. It allows accomplishing the objectives in the desired manner. It is also because of the high rate of import values. 

8. Major players in the market 

A number of players are having participation in the sector and offers a wide range of services to the customers. Key players in the wine sector are Chateau Indage, Four Seasons, Charosa and Fratelli. These all players are having effective participation in the sector that also enhances the competitiveness. It has been witnessed that a high scale of competition creates an issue for the businesses. La Reserve, Grover, Sula, Heritage Port, Vinsura Wines, Nine Hills, Chateau d’Ori are also key competitors in the sector. It allows having better competition in the market. Each firm is trying to improve its distribution channels so that overall objective can be accomplished (Robinson and Harding, 2015). 

In addition to this, it can be said that Chateau Indage is having key practice from different locations. Different plants are being installed at the different locations of Narayangaon, Pune on the Pune-Nashik Highway. It indicates that the companies are sales under state laws so that better opportunities can be attained in the market. It has been witnessed that Grover Vineyards is located near to Bangalore, Karnataka and it is being sold in Delhi through the indirect channel. It allows having better reach to the customers. Key players of the industry are also focusing on improvement in quality and taste to attract more customers. It assists in meeting the objectives and lead the business firm to an impressive level of success (Carroquino et al. 2018).

Key wine suppliers in the sector are Eshik Impex, Technometrics Farma, SK Impex and Elite Vintage Winery India Private Limited. The high scale of competition in the market allows improving the standards inadequate manner. It assists in meeting the objectives properly. Pricing factor is also being considered by businesses to have a better application of standards. It is necessary to have long term development and allows meeting the objectives inadequate manner. It has been witnessed that Sula Vineyards is a company that produces 300,000 cases in a year to gain competitiveness in the market. It is also expected to increase by the end of the year 2019 so that long term development can be taken into account. 

9. Analysis of the wine industry in Delhi 

It has been noticed that Delhi wine sector is having great opportunities in the competitive values. It allows accomplishing the objectives in the desired manner. It is also a reason that the world-class wine is being served in the Delhi bars and retail stores. Companies are having continuous improvement in the product line so that long term development can be promoted. Growth numbers are also impressive that attract the working in the desired manner. A better understanding of the market can be taken into account as per swot standards (Bargain et al.  2018). 

A key strength of the wine industry is that companies are having continuous growth with a rate of 7 per cent per annum. The standards are being evaluated in an accurate manner and in the last five years, the businesses are having impressive growth. It has also been identified that Delhi wine sector is having an improvement in terms of grape growth. Urban population in Delhi is also increasing day by day that assists in meeting standards. It also helps the sector to have advancement in sales. It allows improving the work conditions in an accurate manner and leading to an impressive level of success. Along with this, changes in consumer needs are also benefiting the business firm. Young people are attracted to wine products as an alternative to hard drinks. Wine consumption allows people to have a refined taste of liquor. It also enhances customer satisfaction and improves work consideration inadequate manner. Wine product is also becoming a most acceptable product among women and youth of Delhi that enhances the opportunities for the industry (Ray and Chowdhury, 2015). 

Other than this, an issue that the sector is facing in Delhi is regarding the lack of cellars and refrigerators. It affects the inventory management and impacts the overall performance. Along with this, many distributors are serving alcohol to the population that is not legally allowed to consume the product. Poor awareness about the wine infrastructure and products is also a critical issue that affects the overall development.  

10. References  

  • Ray, P. and Chowdhury, S., 2015. Popularizing Grape Cultivation and Wine Production in India–Challenges and Opportunities. International Journal of Social Sciences4(1), pp.9-28.
  • Robinson, J. and Harding, J. eds., 2015. The Oxford companion to wine. American Chemical Society.
  • Krishnamurthy, R., Mishra, R. and Desouza, K.C., 2016. City profile: Pune, India. Cities53, pp.98-109.
  • McIntyre, E., Ovington, L.A., Saliba, A.J. and Moran, C.C., 2016. Qualitative study of alcohol consumers who choose to avoid wine. Australian journal of grape and wine research22(2), pp.182-189.
  • Durand, R. and Khaire, M., 2017. Where do market categories come from and how? Distinguishing category creation from category emergence. Journal of Management43(1), pp.87-110.
  • Gawande, S., Shukla, P. and Mishra, A., 2017. Study on Wine Policies, Regulations and Standards in Maharashtra, India. Science, Technology & Public Policy1(1), p.6.
  • India Wine Insider, 2017. [Online]. Available through: < https://www.indianwineacademy.com/Presentation_Final_100317.pdf >. [Accessed on 23th March 2019].  
  • Jones, G.G. and Grandjean, E., 2017. Creating the market for organic wine: sulfites, certification, and green values. Harvard Business School General Management Unit Working Paper, (18-048).
  • Joshi, V.K., Panesar, P.S., Rana, V.S. and Kaur, S., 2017. Science and Technology of Fruit Wines: An Overview. In Science and Technology of Fruit Wine Production (pp. 1-72). Academic Press.
  • Saranraj, P., Sivasakthivelan, P. and Naveen, M., 2017. Fermentation of fruit wine and its quality analysis: a review. Aust J Sci Technol1(2), pp.85-97.
  • Taylor, S. and Taylor, M., 2017. The Aroma of Opportunity: The Potential of Wine Geographical Indications in the Australia-India Comprehensive Economic Cooperation Agreement. In The Importance of Place: Geographical Indications as a Tool for Local and Regional Development (pp. 81-107). Springer, Cham.
  • Bargain, O., Cardebat, J.M., Chiappini, R. and Laffitte, C., 2018. Long-Term Prospects of the International Wine Trade. Journal of Wine Economics13(4), pp.442-450.
  • Carroquino, J., Roda, V., Mustata, R., Yago, J., Valiño, L., Lozano, A. and Barreras, F., 2018. Combined production of electricity and hydrogen from solar energy and its use in the wine sector. Renewable energy122, pp.251-263.
  • Gouveia, S., Rebelo, J. and Lourenço-Gomes, L., 2018. Port wine exports: a gravity model approach. International Journal of Wine Business Research30(2), pp.218-242.
  • Mehta, R. and Bhanja, N., 2018. Consumer preferences for wine attributes in an emerging market. International journal of retail & distribution management46(1), pp.34-48.
  • Insight – India’s growing thirst for wine, 2019. [Online]. Available through: < https://www.austrade.gov.au/news/insights/insight-indias-growing-thirst-for-wine >. [Accessed on 23th March 2019].  
  • Wine companies in India, 2019. [Online]. Available through: < https://business.mapsofindia.com/india-company/wine-companies.html >. [Accessed on 23th March 2019].  
  • Wine Importers in India, 2019. [Online]. Available through: < https://beveragetradenetwork.com/en/list-of-wine-importers-in-india-275.htm >. [Accessed on 23th March 2019].  

Assessment 1

Australian Finance Direct was previously called as FAI finance. It provides a solution regarding finance to their consumer in Australia. Information Technology is now an important part of an organization. Companies maintain their database in their mainframe system. It is a rapid change in management. ICT helps in conveying information at a very high speed and in a very efficient manner. The computer is able to store the data and modify or manipulate the data as per the instruction of the user. The important role of information and communication technology in organization activities are as follows:

Communication relationship: Electronic mail is the easiest means of communication message between the employees, customer, and suppliers. As the demand of new era various advanced tool is introduced like live chat system, telephones or other high technology tools for the employees by whom they can easily communicate with each other. Financial institutes require the best means of communication method (Usmanfarouk,2015).

Administration information system: By the help of information technology, the manager can easily track the transaction, expenses and immediately take action against the lowest transaction as per the expectation. It helps in to maximize the sales and reduce the cost of the other services. The organization used new technology for storing their data which help them in their progressive planning.

Automatic printing schedule: Information technology used in the financial institution is generate the receipts of deposits, passbooks or other documents which is an evidence of the transaction.

Organized Management: In previous times companies stored their data in files which only create confusion and filling the cabinets. After the introduction of information technology, companies used digital technologies for data storage. It helps to maintain a large amount of data and make easier to access data whenever they need ( Aliyu,2012).

Computers are primitive need of the organization, especially financial institute. New technology brought enormous impact on staff and customer of the bank. Technology makes the fastest delivery of banking services to their customers but it creates the new competition base as well. But the main aims should be the direct marketing and consistency in management which support in decision making.

Information plays a vital role in the financial institution. Institute bound some activities which need the platform of information. This is the main reason for the values of information in the organization. Branches are connected through computerized factor which increases the efficiency of decision making and monitors the activities. They can create good relationship factor with the staff of other branches (Abbas, 2017).

Reduce cost: Accurate information reduce the cost of productivity. It can be said due to some evidence like good information emphasizes better planning methods. The Planning for the productivity guide the exact material and other expenses. Cost of paper, pen or other elements which now be able to work digital platform.

Save time: Quality of information saves time in many ways- it avoids duplication in entries if the entry is done already. Australian Finance Direct saves times their employees and customer who make the transaction or performing other activities. Mobile application and website save lots of time and energy. The consumer can able to perform their activities easily on the digitization.

References

  • Abbas,A, and Weigand, H.,(2017). The Impact of Digital Financial Services on Firm’sPerformance: a Literature Review. Department of Management
  • Aliyu,A,A,and  Tasmin,R,B,H., (2012). The Impact of Information and Communication Technology on Banks ‟ Performance and Customer Service Delivery in the Banking Industry.Department of Technology Management 
  • Usmanfarouk,B,K, and Dandago,K,I.,(2015). Impact of Investment in Information Technology on Financial Performance of Nigerian Banks: Is There a Productivity Paradox?.Journal of Internet Banking and Commerce

Introduction

This report will be based on a case study which determines about hairdressing chain. This study is based on Cut Short Salon which implements some new feature in their salon. According to the study, these features increase profitability. It addresses some recommendation which improves these new features and increases the rate of customer. It will address the new point which needs to be focused by the organisation and enhances the brand’s image of the organisation at the international level as well. Suggestion describes those concepts which need to be developed in the habit of the salon. Development and improvement are required for every organisation to grow in the same industry. This report will say that the salon needs to implement technology and the new technique which is useful for increases its brand image of a specific. Image is not enough. The salon must prove that its management and service is an exact what they promote in the market. Sponsorship will also help them to grow.

Question 1

In the field of salon service, the Cut Short started its works in the hair cutting and styling service. This organisation provides its hair styling services to its customer who would be booking its appointment from the online services. In this field, there are various organisations which provide efficient service to its customer. According to the report, the customer gets the advantage of service from the Cut Short. They save up to 15 minutes of each customer by providing the new advanced feature in its services. The recent adoption of new facility saves lots of time for each customer who visits the salon. When a customer visits the salon, the choosing styling takes time from the available services and the payment methods also took more time. These processes are very time consuming for every customer (Catherine, 2016). Cut Short implement some features which increase the profitability and minimize the time consuming by the customer. The implementation is as follows:

  1. a) Pre-booking appointment through online service (website) of the organisation –customer can select the service like restyle, blow wave, trim etc. with date and time.
  2. b) When customer completed appointment or pre-booking- the payment also is made online from the credit card or PayPal.
  3. c) Cut short encourages its customer for pre-booking, online payment by offering a 10% discount.

d)If the customer does not reach on their appointment time, they will be penalised from extra charge.

These features add by the Cut Short Salon which increases its profitability and optimizes the time resource in an efficient manner. The customer appreciated these feature because it reduces the complexity of booking, minimises the time for payment queue and significant use is to save the time for choosing a hair styling method (Dean, 2012).

Recommendations for the Cut Short Salon are:

Brand Awareness

It is a significant factor for any organisation that increases the profitability of the business. Cut Short Salon needs to increase its brand awareness in the local public. It increases by the rate of customer who visits the salon and at least tries once that particular service. The techniques required for brand awareness are brand ambassador, advertisement in print media by offering unique features or discount offers from another salon. Hire a celebrity who promotes the specific brand and performs advertisement on social media and television. 

Nowadays, social media is one of the best platforms for the promotion. If a celebrity promotes a specific organization or some brand, people automatically attract by and try at least once. The process of brand awareness requires lots of time, and more effort but organisation surely achieves the particular objects of the organization. Salon draws the attraction by providing unique hair styling features in fewer amounts, by providing combo offers or the special day in which they must offer a 50% discount to the customer (Engineering Business Journal, 2015).

According to the case study that Cut Short Salon provides pre-booking service on its website. If a celebrity shares the particular link of their website by which customer can easily access and take advantage of its service. Customer take services and they impressed from the salon service. It has the vast possibility that customer will become a regular customer. These strategies will be helpful to attract the customer.

Pamphlet will be distributed with the newspaper in the local areas. Fashion magazines include some part of the salon which says about newly updated services of the Cut Short Salon. There are some other alternatives which enhance brand awareness among people, i.e. Salon must collaborate with the modelling association, film industry. These associations are a very significant resource for brand awareness, and it is the primary tools which increase the growth of Salon. If the quality of work is more appropriate according to the expectation, respective Salon grows its brand in international based (Lewis, 2012).

Salon’s Administration 

As per the case study, salon improves various features and updated its service according to the demand of time, but Salon needs to be organized its administration as per its services. The customer expects to prefer those salons which give respect and treat well in the accordance of behaviour, attitude and the preference in the service. When customers visit the salon, first visit reception window and book its seat or inform about its pre-booking service about its respective function. It is the duty of receptionist that they respectfully welcome the customer and listen carefully about the service customer. If there is a massive queue maintain or manage accordingly that every customer will be satisfied with their preference level (Pocol, 2012).

After that, the customer will be seated for offering their services. Space must be hygienic, the use of the product should be high quality or original, the use of clothes or towel should be clean, the administration should take care of unwanted noise etc. These features will provide an initial level of relaxation and satisfaction to the customer.

Further, all these services, customer move towards the payment gateway if they already paid by online means that they avoid this step. Those customers who not paid online that give pay by cash, PayPal, credit card, debit card etc.

Employees of the respective salon must keep their attitude low in front of the customer and listen to the issues of the customer and gives them to the service according to their expectation (Soltani, 2016).

Innovation (Mobile Application)

This era belongs to the technology means, Cut Short Salon developed its website and offered the various feature on it. But it requires one further step towards technology. This Salon needs to improve its mobile application which enhances the level of participation towards the salon. Mobile Application is easy too, and notification will recommend the customer for special service.

The salon must be updated according to the hair styling options with the product because now people like to use the branded product. It increases the image in front of the customer that respective salon use branded product which surely brings improvement on their scalp of hair (Tsai,J.et.al., 2012).

In traditional time people goes only on some special event or in monthly but now the time will change the mind of people. Mobile Application notifies about the unique offer and the reviews of customers as well.

In home page- Screen will be divided in some section like hair. Special part has subparts and like hail colouring, hair styling, hair cutting, hair straightening etc.

These sections will tell about the service and customer can access the information regarding particular service. This subpart information contains the product used for the service, specialist name, charges and charge will pay at the time of pre-booking. This method is taking less time and customer will get a notification if their pre-booking will be confirmed. Cut Short Salon get more benefit if they get the offer of home service because it will be charged more according to the service at the salon. 

This service will be available when the salon develops its mobile application and enhance technology. Pre-booking of service will be cancelled or postponed. This facility should be available at that app. If somebody cancelled its appointment, the amount would be deduced so that unwanted customer will not increase the traffic at the server (Wei, 2016).

This service shows that how many salons involved in the technology world and its make reliable towards the function of the salon. It will enhance the level of contribution from the sponsor products.

Beauty product and hair styling product companies are collaborating with those salons that make good its image in between the market.

Question 2

The unique suggestion which helps to improves the business service or operation offerings are as follows:

Use reliable products

The salon must focus on its regular contacts like they should always trust on reliable and original. The reliable hair product may be expensive, but the salon includes its habit that they never compromise with the product quality if the constraint is price, time or store. Cut Short Salon must highlight those things which might be attracted to the number of customers. The highlighted factor may be a reliable product and trustworthy. If salon undergoes in the sponsorship, they must be used by them only after appreciating by staff or salon individual. After this, the salon used or apply customer. Mostly, salon used various which give more fund for their sponsorship. If Cut Short Salon wants to grow at the international level, its essential requirement is to sponsor a global beauty product. Now a day people like to prefer international product because it believes that international product is more reliable due to its brand awareness among people. It enhances the rate of performance and customer rate. Salon proves that these products require the best service due to the human effort as well because every product demands specific effort and style. It will be determined when the salon staffs give their best and push their effort according to the demand for a particular product. Customer is curious about international services like hair spa, hair straightening etc. The salon should take a step towards that which maximizes the profitability and increase images in the market (Lewis, 2012).

Implementation of new service

New service will increase the excitement in the existing customer, and it attracts a new customer. The salon should be updated with the service which is recently implemented in the local market or international market. This strategy will complete the demand of customer and fulfils their expectation. People get aware about new service from social media, movies and serials. After watching videos and read about them customers want to implement on them also. But they want to give this chance to the experience personality or the reliable salon which can them easily trust and accept the new implementation. For example, a hair spa treatment is only for models or actress because of little bit expensive, and it requires good quality of the product. So just actors and models use this treatment, but nowadays it is entirely reasonable because salon uses technologies and gives hair spa according to the nature of hair and scalp. These strategies made profitable, so that salon starts implementation according to the market demand. Customer appreciates this theory and contributes their best favour. So, Cut Short Salon moves on this direction and offer new service to its customer. By this, salon increases its brand image because when it is ready to implement, they should advertisement in social media and give offers to the customer in their first service. It increases profitability, and it provides unique space in the same platform (Wei, 2016).

Conclusion

This report concludes the recommendation and suggestion of hairdressing chain. It was based on the case study in which a Cut Short Salon add some new exciting features which increase their profitability like pre-booking services, online payment through website reduce the wastage of time. It is the strategy which efficiently optimises the resource. Recommendation proves that salon needs to improve its existing service in a particular way and suggestion offers those strategies which enhance the rate of profitability with the traffic of new customer. This study concludes that salon is also a profitability sector because it increases or grows according to the time.

References

Catherine,B.,(2016).Redundant technology in the salon. Professional Beauty,pp. 118-119

Dean,D,H., (2012). Gender ethnic identity and patronage likelihood for a unisex hair salon.Young Consumers. Vol.13(2).pp. 124-135

Engineering Business Journal., (2015). Salon Allure Trade Show Evolves To Become “Hammock” With New Categories, Technology And Design. Engineering Business Journal.

Lewis, J. (2012). Festive party season the ideal time to promote your salon. Hairdressers Journal International.p. 5.

Pocol, A. G. (2012). Modern tools for sales promotion–online promotions (Report). The Proceedings of the International Conference, Marketing – from Information to Decision. Issue 5.p.380(16).

Soltani, Z. &Navimipour, N. J. (2016). Customer relationship management mechanisms: A systematic review of the state of the art literature and recommendations for future research. Computers in Human Behavior. Vol.61. pp.667-688

Tsai,J.et.al., (2012). The Effective and Quality Approach to Reduce the Turnover Rate for Hair Salon Industry.International Journal of Sociotechnology and Knowledge Development.Vol. 4(4). Pp. 44-57.

Wei, J. T. Lee, M. C. &Chen, H. K. Wu, H. H. (2016). Customer relationship management in the hairdressing industry: An application of data mining techniques. Expert Systems With Applications. Vol. 40(18). Pp.7513-7518.

Introduction

This report includes a discussion of the research methods used in the consultancy project. The selected topic of the group project is focusing on use of digital methods for social awareness. The reason for selecting this topic is to enhance the knowledge and explore the aspects of social awareness for society and young adults. The report will describe the different research methods used to resolve social problems encounter in society with social awareness by digital technology. The research methods are beneficial in any research project as it makes the research more accessible. The discussion of different research methods will be described in this report.  The report will include the critical evaluation of the research methods which makes the research proper and appropriate.  The report will include a reflection on future consultancy projects.  The research methods are beneficial in the success of any research project.  

1. Understanding of research methods as evidenced by discussion of methods selected and breadth/depth of reading

Research is a study proposed for a particular topic and concern aspects. Research is helpful to describe and resolve a particular real world problem. Many people organizes research so that they can facilitate active solution for define issues and problems. It includes a define process which include identification of topic. Once the topic get selected, them aims and objectives been drafted so that project focus on right path and goal. Later, literature review has been prepared for the study which includes various scholar and writers perspective with academic and authenticates sites. On the basis of selected method, research methods lead to selected for a project with sample size. Moreover, study also involves data collection and analysis process with conclusion and recommendations at the end. 

 The research methods are very useful in the research consultancy projects which focus on use of digital technology in social awareness event.  The research methods can be used for doing the research project in an appropriate manner. There are different types of research methods like qualitative research methods, quantitative research methods, primary collection of data, a secondary collection of data and many more (Johnson and Vindrola-Padros, 2017). All of the data collection and data analysis are two important research methods which carried a successful research project.  

The selected method for this research is qualitative research as this is based on the literature and the data collected from previous articles and journals. These journals were about in depth understanding of digital technology and their application on the social awareness. These journals and online articles became major source of knowledge and learning about the feedbacks received during data collection. The quantitative method helped in framing future technology as well as future deals for the development of the research ethics. The literature that will be studied is basically collected from some online journals and articles telling about the impact on childhood and social changes that can be done using digital technology.

2. Evaluation of the challenges faced in data collection and analysis, with due regard to ethical and practical considerations

The data collection and data analysis are two essential methods included in the research. By using these two methods, the research project becomes complete and appropriate. In these two important methods, many challenges occurred as per ethical and practical considerations (Fryer, et. al., 2012). Following are some of the issues and challenges encounter while organize the proposed social awareness study: 

  • Ethical issue: The ethical issues have mainly arisen in the process of data collection and data analysis which affected the whole research project. Ethical consideration is essential for research due to human intervention (Taguchi, 2018). The same was experienced while the team was analyzing data resources from different sources.
  • Deception: The one must avoid the use of deception in data collection to proper monitoring the study. The privacy of respondents is the main ethical issue in data collection. There has not been any deception and any sort of cheating of facts changing during the course of time.
  • Accuracy of information: The main challenges in data analysis are the data analysis is time consuming in the data collection activities. It is difficult in the large research, lack of people who correctly understand the project and insufficient expertise in data analysis (Reed, 2018).
  • Data privacy: One more significant issue is data privacy which constitute with information. It is essential to understand information properly and protect it. Thus, data theft and privacy become major and concern problem in the research. Privacy has been maintained by keeping limited access to the data and making changes accordingly.

3. Critical evaluation of the appropriateness of the methods selected

According to Suhonen, et. al., (2015) appropriateness of research methods defines the methods which are the most suitable research approach as per the research methodologies. Appropriate research methods make the research proper. The two research methods which consider as appropriate for the study include:

  • Qualitative research method: It is a primary exploratory research method which helps to uncover the thoughts and define some reasons, opinion and motivation (Vargas-Urpi and Mireia, 2017). A clear understanding of problem gets evaluated with development of hypothesis (Abrahamsen, et. al. 2016
  • Quantitative research method: This information method is helpful to determine the problem with some numerical terms and data. It is helpful to define some facts and figures for more evaluation of the proposed study and research. It includes survey and some information from secondary sources for statistical differentiation (Wilson, 2016).  

4. A personal reflection on how the project will inform future research consultancy projects and/or professional practice

As per my knowledge, the research methods are essential in future research consultancy projects. The research projects give the best results by using the research methods. I am aware of the use of research methods that they are the most critical part of the research project. The data collection and data analysis methods help the researchers to carry out the successful research consultancy projects and study various resources including existing and future use of digital technology in social awareness. The primary and secondary purpose of data collection is selected in this project which is included in the best methods of research as per my experience (Mmari-blum, et. al., 2017).

The proposed project is helpful for the future study. The future research project can be prepared on social awareness for some specified aspects like discrimination. I have prepared some points in the study for better awareness about a project. Major issues like data privacy, appropriate information from human, disruption are some problems encounter with a study. Thus, future study can focus on research methods and issues associated with a project. I have researched such aspects properly so that data become effective and study went into right and proposed direction.

Conclusion

In this report, the research methods have been discussed which are very efficient in the projects of the consultancy. This report has been discussed the primary and secondary method of data collection which provides the related data to the particular project and also gives the best results of any research. This report has been included the various challenges that occurred in the process of data collection, and data analysis like data analysis is time-consuming, the privacy needed by the respondents and many more methods. The evaluation of appropriate research methods has been described in the report. At last, the personal reflection of the research methods has been described. This was all done to identify the current factors and future needs of the data resources and social impact and appropriate future analysis on the same.

References
  • Abrahamsen, M., Henneberg, S., Huemer, L., & Naudaaaaaea@, P. (2016). Network picturing: An action research study of strategizing in business networks. Industrial Marketing Management, 59(C), 107-119.
  • Fryer, C., Mackintosh, S., Stanley, M., & Crichton, J. (2012). Qualitative studies using in-depth interviews with older people from multiple language groups: Methodological systematic review: Review of language appropriate qualitative research method. Journal of Advanced Nursing, 68(1), 22-35.
  • Johnson, G., & Vindrola-Padros, C. (2017). Rapid qualitative research methods during complex health emergencies: A systematic review of the literature. Social Science & Medicine, 189, 63.
  • Mmari, Blum, Atnafou, Chilet, De Meyer, El-Gibaly, . . . Zuo. (2017). Exploration of Gender Norms and Socialization Among Early Adolescents: The Use of Qualitative Methods for the Global Early Adolescent Study. Journal of Adolescent Health, 61(4), S12-S18.
  • Reed, P. (2018). Entanglement and the Relevance of Method in Qualitative Research. Nursing Science Quarterly, 31(3), 243-244.
  • Suhonen, R., Stolt, M., Katajisto, J., & Leino-Kilpi, H. (2015). Review of sampling, sample and data collection procedures in nursing research–An example of research on ethical climate as perceived by nurses. Scandinavian Journal of Caring Sciences, 29(4), 843-858.
  • Taguchi, N. (2018). Description and explanation of pragmatic development: Quantitative, qualitative, and mixed methods research. System, 75, 23.
  • Underwood, & Waterson. (2013). Systemic accident analysis: Examining the gap between research and practice. Accident Analysis and Prevention, 55, 154-164.
  • Vargas-Urpi, Mireia. (2017). Combining different methods of data collection in public service interpreting doctoral research: Examples from the Spanish context. Translation & Interpreting, The, 9(1), 88-101.
  • Wilson, V. (2016). Research Methods: Triangulation. Evidence Based Library and Information Practice, 11(1), 66-68.

Introduction

Entrepreneurship is the process of planning, designing and launching the idea of new business. It includes the financial risk about the particular business and the idea of creating a new business and as well as the actual process of starting a new business. This report is focused to identify the different types of entrepreneurial ventures and its relation with the typologies. The difference between the entrepreneurs, intrapreneurs and owners managers will also be analyzed in this report. Effect of SME and micro business will also be analyzed in this report. The last of this report will focus on the traits, characteristics and skills of the employees. 

LO1

1. Examine various types of entrepreneurial ventures and also give a comprehensive explanation of how these relate to the typology of entrepreneurship

Entrepreneurial ventures – Those ventures thatstart and runs by an individual withvery limited resources and a high rate of risk. It often includes new business ideas about any product or services. All entrepreneurial ventures are not the same (Bascini&Durucan, 2017). Ventures are classified into four different categories which are the following:

  1. Small business entrepreneurship – Small scale businesses often fund their business from friends, family, savings and small business loans. Grocery stores, travel agents, carpenters, plumbers, and storefronts etc. The idea of their success is to just make enough profit. They don’t want to take over the industry because they are just enough profitable. 
  2. Scalable startup entrepreneurship – Scalable startups are those businesses where they have a vision about their business idea. They attract investors to invest in their business idea, it called venture capitalists. Like startups in silicon valley, Shanghai, New York, Bangalore etc. 
  3. Large company entrepreneurship –Large companies offer new products or service according to the taste of customers, new competitors, legislation etc. they launch variants around their core products.
  4. Social entrepreneurship–These could be non-profit or hybrid types of companies. Their core focus is on creating new products or services according to social needs and problems (Morris, et. al., 2016). 

Typology of entrepreneurship–In the field of entrepreneurship, typology explains the classification of types of entrepreneurship. The following are the four types of entrepreneurs:

  1. Innovative entrepreneurs – This type includes those who invent the new ideas, new products, methods or process. These are the leaders types of entrepreneurs who discover markets for their own. Those people are risk taker and contribute to the economic development of the country. 
  2. Imitating entrepreneurs – It includes those entrepreneurs who immediately copy any new invention created by others. Those could easily find into those areas where there are lack of resources because of less resources no innovation could be develop there. 
  3. Fabian entrepreneurs – It includes those who are follow any invention only after they are sure about the outcomes. This type of entrepreneurs doesn’t take much risk and only follow if something satisfied their fears.
  4. Drone entrepreneurs – These type of entrepreneurs are far more conservative and don’t make any changes to the present mode of the business as they are afraid of applying any change to the organization. 

Entrepreneur ventures interrelates with entrepreneur typology

Ventures Typology Interrelation
Small scale ventures Craftsman
  • Less capital
  • Professional skills required
  • No communication skills
  • No investment
Scalable startups Social enterprises
  • Big investment required
  • Uncertainty for profitability
Large company Risk-Oriented
  • Uncertainty about the reaction of the new version of products or services
  • A lot of investment in projects
  • Very risk-oriented
Family oriented Managerial
  • Often managers handle family businesses
  • Every generation is not that great into running a family business

2. Explore the key differences between serial entrepreneurs, intrapreneurs and owner-managers.

Serial entrepreneurs Intrapreneurs Owner-Manager
Similarities
  • Common goal of making business successful
  • Have decision making authority
  • All have business managing ability
  • All have forecasting ability
  • Common goal
  • Decision making authority
  • Business managing ability
  • Forecasting ability
  • Common goal
  • Decision making authority of the business
  • Manage their own businesses.
  • Forecasting ability

Differences

Serial entrepreneurs Intrapreneurs Owner-Manager
  • Independent
  • Use own resources
  • Newly founded
  • Capitalized by own
  • Risk will handle by own
  • Profit as reward
  • Dependant
  • Use provided resources
  • Work for existing companies
  • Capitalized by the company
  • Risk manages by the company. 
  • Salaries as rewards
  • Independent
  • Own resources
  • Handling operations in ongoing process
  • Capitalized the company
  • Risk averse
  • Salaries as reward

3. Define public and corporate sectors demonstrate and investigate a variety of    Entrepreneurial ventures within the context of the public and corporate industry.

Public sectors – Public sectors include those enterprises which are self-financing enterprises that are under public ownership. It includes public goods and services like military, law, and infrastructure etc.  

Corporate sectors – It includes manufacturing and tertiary services. It plays a huge part in the domestic economy. It could be a bunch of companies with the same industries (Lee, 2014).

NHS (Public sector) – NHS was launched in 1948. The core idea of these ventures is that healthcare is available for all on every requires time. Earning profit is not the prime motive of NHS like other public sector ventures. It includes health care services, emergency services, health checkups, transplant and end of life care.

Greenergy International Ltd (corporate sector) – It is a UK based petrol and diesel company. It sells more than 20 million litres of fuels in a day. Greenergy produces and sells biofuel. It is one of the largest fuel producing and selling companies and one of the largest companies by its earning revenue. 

4. Examine the scope, development, and growth of entrepreneurial ventures you considered above. Your work should be critical and consider your own opinion as well.

NHS is one of the most popular and biggest ventures in the public sector in the UK. Services which are considered to be in scope are improving the quality of services of heart disease and care and support for those families suffering from negative or poor outcomes from any surgery. But these things are in the scope of the organization and will have a good plan of development in the future. NHS spends a lot of budget on drugs, health care services, and treatments. Growth and providing health care services to everybody is the prime motive for the future (Mcintosh, et. al., 2018).

Greenergy international Ltd is one of the biggest suppliers of fuels. They have a good infrastructure and service capability. To grow internationally, the company has to improve its services and will provide their services on more new places. The company co-founded with new oil and the chemical store called navigator which shows that the company is making some serious plans for their businesses.

LO2

1. Interpret relevant data and statistics on scenario 2 to assess how micro and small businesses have a significant impact on the UK’s economy. You may use specific examples to back your analysis.

Micro and small businesses play an important role in the UK’s economy. According to recent researches, it shows that these small scale companies have a high growth rate. In 2017, 36 percents of SME employers reported growth in small business survey. It shows vital growth in these sectors and helps to boost up the economy of the UK. 

Turnover of small and medium businesses in UK

Figure 1: Mean turnover by micro-business: by region

Source: Micro-Business Britain Survey, (2018).

The graph above explains the turnover of small and medium entrepreneurs in the UK. This shows significant growth in the turnover of these companies (Stephen &
Hart, 2018).

Export opportunities created by SMEs in UK

Not just SMEs high turnover helps to boost up the economy but it also helps to create more export opportunities. SME businesses help GDP to grow by increasing the export rate. Below mentioned will explain this:

Figure 2: Percentage of micro-businesses exporting:  by region

Source: Micro-Business Britain Survey, 2018.

SME organization like Unicorn grocery store, UK is one of the successful models of small, medium entrepreneurs who help to make a significant boost into GDP of UK by providing full time, part time jobs and increasing GDP. Above graph explained that in UK, SME are exporting to all over the UK which increase the economy significantly. 

Small and medium businesses providing employments in UK

Small businesses play a significant role in the creating employment in UK. The following graph explains about it. 

Figure 3: % of employment small business provided

Source: Market Inspector

The above graph explained that small businesses are having a highest percentage of 99.3% for providing the employment in private sector in UK. Total employment in SMEs was 15.7 million that was total 60% of all the private sector employment in UK.

2. Define social economy with one example. Explain how small business and business start-ups are vital and significant in growth and development to the social economy of the UK.

The social economy is taken as a third party from the private and public sectors. It is mostly non-profit, not for profit and voluntary organizations. Many social organizations just provide services to their customers but not for profit. Governance typically operates through one member, one vote basis. It includes credit unions, trade unions, sports associations, and school and hospitals organizations like British Biathlon (sports union of UK – a governance body)(Cowling, et. al., 2015).

Small business and business start-ups are an important part of the economy. HGSB are just a fraction of total small scale companies in the UK. 20% of growth in the social economy in the UK was from goods and services produced by HGSB. It helped to create new jobs in the UK. Employment was earlier a big issue for the country. Then startups were on its boom which helped the country to come up with this problem. Now, the UK is all about the scalable startups in the market. It brings overall growth in the country and helped to attract tourists and import-export business and all which helped the country to make a boost in the social economy of the UK.

It has a significant growth rate in all the small scale industries. They increase their turnover every year. Within the last 5 years, they prove that these industries are one of the most growing industries worldwide (Brammer, et. al., 2012). Especially in the UK, it helped to create a balance within all the small scale business and microscale businesses. It helped to find out talented and skilled persons with specific degrees and skills. So it is helping them overall like giving a boost in social economy and providing them jobs and, increases business and achieves significant growth in the national and social economy in the UK (Rotimi, et. al., 2017).

3. Evaluate the differences small, medium and large businesses make to the economy at different levels of the economy, such as local, regional, national, etc. by using relevant statistics.

Small, medium and large businesses have their own significant impact on the economy at different levels of local, regional and national economy. The following are the differences:

Funding – Funding could be the utmost level of difference between small, medium and large scale businesses. Small scale businesses usually have funding from their friends, family, and relatives. On the other hand, medium and large scale businesses have a large group of investors who fund their financial needs. It provides them with very much help in starting their businesses and providing them help to settle down in the market.

Differences in a niche market –Small and medium businesses often focus on the local niche markets because their target customers are a localneighbourhood. Large companies mostly have a wide range of customers, it could be national, international so those companies don’t usually target niche markets. Their targeted customers create a difference between SMEs and large companies.

Size basics – The size of the employees working in the company is showing the difference between small and medium and large scale organizations.. Anything more than that will be considered as medium or large scale organization.

Legal structure–The legal structure of the company like owners who will be liable for debts creates a difference between small, medium and large organizations. 

4. Critically examine how small businesses have an impact on different levels of the economy in a local, regional, national and international context.

Small businesses are an important part of the UK economy. It makes a huge impact on different levels of the economy. Small scale industries have the following impact on the economy’s different levels (Salter, 2015).

    • Local/Regional economy levels – ITplays a vital role in even in the local or regional economy of the UK. It helps to open new markets and expands niche markets of the area. In 2014, almost 5.2 million businesses were small scale businesses in the UK which explain the situation as well. It helps to grow the industries all over and creates millions of jobs every year for the people. Employment was earlier a big issue in the UK but from the last few years because of small businesses everybody is having a job there and a good living standard.
  • National economy – small businesses helps to increases the productivity of the economy of the UK. It contributes 47% to the national economy every year. It plays a significant role in boosting productivity.The public-private sector partnership helps it to deliver high-quality returns in small businesses.  It helps to drives growth rate high. 
  • International context –Small businesses attracts huge changes in the import-export market and it helps to attract more and more investors for investing in new and innovative small scale startups which shows the strength of the economy. It makes a good reputation in the UK in all other countries (Toma, et. al., 2014).

LO3 and LO4

1. Determine the characteristic traits and skills of successful entrepreneurs (Alan Sugar) that differentiate or distinguish them from other business managers.

Entrepreneurship is the process to start and run the business successfully. This process seems very easy at first but planning an idea and implement that idea into a successfully running business could be that natural process. It requires a lot of efforts, hard work and some unique characteristics, traits and skills for being successful entrepreneurs such as Alan sugar were one of the most successful entrepreneurs of all time in the UK. He didn’t bear with a silver spoon, but at a very early age, he was able to understand the power of ownership. He started his electronic items business at the age of 21, and he was one of the only persons back then who identify the need of electronic item which gives him great success and open the path of opportunities. The following are the characteristics, traits and skills for being successful entrepreneurship which is still very useful for today’s young entrepreneurs (Elen et al., 2012). 

  •   Motivation – Self-motivation is one of the prime requirements for being an entrepreneur successfully because there will be many times during the business when things will be not according to the expectations, and that leads to negativity in an entrepreneur very quickly because things are quite unpredictable in the market more often. Alan Sugar did face some struggle in the early age of his life. But not only had he motivated himself for the goals he decided at the age of 20. During the downfall in the economy or GDP of the UK, his companies affected, but he didn’t lose hope and made better strategies to come up with this crisis. 
  •   An opportunistic   – A successful entrepreneur should be able enough to identify and grab new opportunities in the markets. An entrepreneur will be competent barely to understand the new opportunities which are available or could develop in the future. Alan was the person who always promotes new opportunities in every industry. That makes him different from other entrepreneurs. He prefers innovation in a new industry which helps him to provide a new idea about starting new businesses with unique ideas 
  •   Challenger – Most of the times, in business things are not according to the plan, or the desired outcomes will be different often, an average person will not be able to face the challenges, but the entrepreneur should be an unbeaten challenger first so there would be any issues in hard times. Alan set the most challenging goals and then he was so persistence to conquer his goals. He believes that picking up the safe path will never lead to uncovering the dangerous way which will not let the person discover the unexpectedly positive results. 
  •   Branding – Branding is essential for being a successful entrepreneur for the future. In this competitive world, having an understanding of branding will be suitable for being good at business. A brand can quickly identify among its competitors. If a person understands the importance of branding, then only that person can convert into successful entrepreneurs such as Alan who needs no introduction today. He is a well-known TV personality and politician and a great entrepreneur of all time. A Businessperson should always focus on the branding of their company, products and services. 

Above mentioned qualities are those who will be very helpful for the entrepreneurs to make them good at entrepreneurship and will be useful to them to run the business successful which help them to turn them different from other entrepreneurs such Alan Sugar. The lessons from his success and failure stories will always be beneficial for fellow entrepreneurs.

2. Assess how aspects of the entrepreneurial (such as Alan Sugar, Richard Branson, etc) personality reflect his entrepreneurial motivation and mindset by exploring and examining different lines of argument relating to entrepreneurial characteristics.

Personality explains a lot about a person. It is a combination of qualities and characteristics. Alan Sugar and Richard Branson are now very famous people but they earned this with special qualities in their personalities. Personality makes with some skills, attitude and some special qualities which make that particular person far more different from other persons. 

Richard Branson is a very fearless person. He is not afraid of any change. He welcomes each and every change in the trends of the market and tries to make a profit from that. He is very much optimistic. He is not afraid of making the wrong choices or decisions. He usually tries to understand each and every trend of the market which going to help him in new businesses. No doubt, he owns more than 400 businesses under his brand Virgin and this is the only thing which makes him different from other entrepreneurs (Shende, et. al., 2012).

He launched Virgin Cola under his famous brand Virgin. It is a completely different sector for him and this industry has already very much competition into. People said earlier that it was not a good idea to invest in soft drinks business when it had already a lot of competition. But Richard proves everybody wrong because since starting he believed in this idea of Virgin Cola. Richard Branson has a very interesting personality and some special qualities for being a successful entrepreneur among all other entrepreneurs. He is very successful. Alan Sugar has those special qualities too. These skills and qualities make them successful and now they are an example for other people who want to try their luck into start-ups. A good entrepreneur should have the following qualities:

Innovative

  • Self-motivated
  • Opportunist
  • Optimistic
  • Risk taker

An entrepreneur would apply those above mention qualities into their business; it would surely bring them success. 

3. Analyze the characteristic traits, skills and motivational drivers of successful entrepreneurs, supported by specific examples.

Entrepreneurs are those mindful people who have a strong sense of business. Who can innovate and have a positive vision towards their products and services? These people are very optimistic and highly motivated which helps them to achieve their business targets on time. For being successful into business few following qualities are required:

  • InnovativeFacebook is one of the most required things for today’s time. It changes our way of life. Facebook is now a part of everybody’s life but nobody was even aware of any of these kinds of things. It made a huge success. An entrepreneur should be innovative enough that can create the need for their particular products or services. Mark Zuckerberg, Steve Jobs are a few examples of innovative entrepreneurs (Miah, 2016).  
  • Smart – thinker – If an entrepreneur is able to think out of the box, then he would only generate new ideas and easily execute them into their business but if entrepreneurs are creative enough to think those ideas which could possibly change the living of people that would make him smart entrepreneurs like Mark Zuckerberg etc. 
  • Risk – taker – Starting a new business, is always a risk running thing. Worrying about the money of investors, profitability and debts/loans will never be helpful in running a successful business like the iPhone changed the world of mobile phones.
  • Initiative–It is the utmost quality of the person who wants to run a successful business. Being initiative is important so that person could possibly make the first step about their products or services and launch them into the world.

4. Examine and evaluate the different environments (background and experience) that foster or hinder entrepreneurship.

For being a successful entrepreneur it is the most important thing to have some specific characteristic traits, skills and motivational drivers which help them to achieve their organizational goals in pre-decided time. Achieving the goal on time is the biggest issue among new entrepreneurs. There are many different environments which can develop some hinder foster situations for the business in the future. The following are those factors which are related to the diverse backgrounds which made an impact on the industry:

Background – Samsung is one of the most popular brands of South Korea and everybody knew this brand, it needs no introduction. It started by Lee-Byung-Chul. He was the founder of this well-known company. He was not a rich man, after started working at various jobs at the end he decided to work for his own. At first, he took the business loan but it didn’t work for him or for his company. Earlier he was not trucking business but soon he realized about the upcoming innovation into this industry and starts this company. Taking a business loan often creates a hinder foster situation for the company.  Loan means debt which will be a liability for the company. The loan hinders company to make progress into the future (Jung, 2014). 

Education – Education plays an essential role in developing an idea into successfully running the business. Facebook is one of the most prominent examples in today’s world. Mark, the founder of the company Facebook which is now one of the most profit making and famous company in the world. Mark thought about the idea of Facebook, during his college days and his education plays a vital role in developing the concept to a successful business (Romero and Errico, 2017). 

Experience – Experience is an essential thing in accessing and running a successful business idea. Experience makes an entrepreneur aware of the situation which that person could face into the market when that person was running the business.

Conclusion

On the basis of the report, it has been concluded that small and micro business firms create s avast effect on the economy. It helps to manage the employment rate in the country which is essential. It is also identified that entrepreneurscontain a huge difference from the owned managers and intrapreneurs. Different entrepreneurs have been analysed in this report which has helped to identify the positive and negative effect of the past life on the entremets ideas and growth. 

References
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Introduction

Travel and Tourism is a larger part of the hospitality industry which provides necessary and preferred goods and services to travellers. This report will focus on the nature and trends of tourism on an international scale. Tourist generating and receiving countries will be investigated in this report to identify the key characteristics of these. The report will also investigate the reasons for generating global tourism and receiving areas. The report will also compare the global tourism destinations on the basis of life cycle, growth and strategies used in the destinations. International organisation for tourism will also be considered in the report to identify the role and responsibilities of these organisations for growth and development of tourism. At the end of this report will identify the threats, challenges and issues in the context of the future development of global tourism. 

LO1

P1 Interpret statistics to accurately present an overview of the nature and trends of tourism on a global scale

It is significant to identify and analyse the nature and trends of the tourism industry in the international market. The nature of tourism is closely linked with travelling which also includes regular change and development in the tourism sector. The development of activities created as a base of a group of people as a traveller.Travel and Tourism is part of the service industry. It includes sectors which provide accommodation, food, beverage, distribution and sale services. “The tourism consultant network” helps to improve productivity, employment generation, income, social development and economic growth. The nature and trends of tourism are:

  • Tourism is the fastest growing sector of the world with bookings of $1.6 trillion approximately in 2017 (Zaei and Zaei, 2013).
  • 10% of the world’s job is linked with the industry of travel and tourism (Lenzen, et. al., 2018). 
  • Tripadvisor is the organisation of travel and tourism which recorded around324 million monthly visitors in 2017. 
  • Booking.com is one the most popular for tours and travels in the world which has recorded approximately 443 million visitors in May 2018 (Blanke and Chiesa, 2013).
  • 10.4% of the gross domestic product (GDP) globally in 2017 is contributed by travel and tourism with an increase of 4.6% from the previous year (2016). 
  • Comparing the first six months of 2018 with the first six months of 2017, arrivals of international tourists grew by 6% worldwide (Assaf and Josiassen, 2012). 

P2 Investigate the characteristics of key tourist- generating and receiving areas of the world

Characteristics of key tourist- generating and receiving areas of the world

Characteristics
Location Location is very important for attracting tourists to a destination. People mostly like the location which they have not seen in the place they live. Like in America the presence of historical monuments are very less, so American go to the places where they can see historical monuments like India.
Climate Climate is another important which can attract tourists. For example, people who live in a cold place might want to go to a place which has a normal temperature, and people who live in warmer places might want to go to a colder place.
Environment Environmental factors can make a major impact on tourists. People who live in a place with high technological structure might want to relax in a place with greenery. 
Culture Many people are excited to know and acknowledge the different cultures of the world. For those who want to know more about different cultures of the world will be attracted by the places rich in culture.

Tourism is the growing industry for many countries in the world. It generates revenue for local economies (Lenzen, et al., 2018). It helps to improve an area of developing a tourist industry and an increase in employment. Entrepreneurs and commodities are reinvesting the amount in the local geographical area.It ensures that construction, maintenance, infrastructure is provided according to tourism. It does not affect the community and local resources of society. 

The most influencing demand for tourism is the availability of money. Countries with the well-distributed income and value of income have a good rate of generating tourists. Countries like India have a twisted distribution of income some are highly wealthy whereas some are very poor, so for people who are wealthy can afford travel internationally but poor people cannot. Also, as India is very rich in historical monuments, so it is highly tourist receiving country. 

The exchange rate is also a major factor in the tourism industry. Exchange rate variations are vulnerable to the cost of tours significantly. Tourists from countries like America, Australia, and New Zealand have high currency rate, so they have more to spend when they go to the Countries with low currency rates like India and Sri Lanka. 

M1 Analyse how the scale and nature of tourism on a global level has been influenced by the emerging economies

The scale and nature of tourism on a global level has been influenced by the emerging economies. The tourism industry in many countries is reflected as the essential part of the development of the economy. It creates financial wealth as well as social impacts. Tourism is the operator of employment and wealth in the economy. Wealthy states have a vast number of tourists; it helps to generate a large amount of money from tourist activity. Subordinates countries obtain a small amount of money from tourism activity. Tourism industry influenced the source of foreign exchange, employment opportunities, and source of public as well as private income, cultural exchange and publicity of nation in the economy.

LO2

P3 Determine specific reasons for the growth of key global tourism generating and receiving areas of the world

Tourism is a continually growing sector which generates employment opportunity and wealth maximisation in the economy. Below are a few reasons for key global tourism generating and receiving areas of the world.

Stimulate GDP Growth – The travel and tourism sector contributes more than 10% in GDP of the economy. It helps to establish a relationship with foreign traders and increase in import & export. As the GDP of the country starts to grow, the government of the country starts to build more plans for the development of tourism in the country.

Boost International Investment –In terms of foreign direct investment, the Tourism industry is the second fastest growing sector. The change of currency from a country to another is enhanced by the growth of tourism in the country. So it is important to develop the tourism activity in the country with low currency rate and highly attractive destination place.

Drives Infrastructure Development –Tourism industry develops that includes improvement in basic infrastructures, such as airports, roads, water supply, and medical services (Scott, et al., 2012)

Create job opportunities –Tourism industry is one of the largest employment creators in the economy. It provides many job opportunities to unemployed people in different areas (Hall, et al., 2013). With the growth of tourism activity in the country, employment also increases to fulfil the needs of tourism activity.

Promotes inclusive growth –Tourism industry promotes labour-intensive techniques. It creates a large network of people to connect with the supply chain which is important for the development of the country. 

Strengthens Rural Communities – Tourism sector supports the people of the rural area by providing job opportunity to rural youth and minorities. The people who live in the rural area have very low sources of income and with an increase in tourism in the country will open many sources of income for rural people. 

Revitalizes urban area – Tourism industry helps to improve in an urban area which creates employment opportunity, improvement in infrastructure and profitable investments (Boes, et. al., 2016). 

P4 Compare and contrast the differences between a range of emerging global tourism destinations in relation to stages of the destination life cycle, factors driving growth, and strategies employed

The destination for tourisms is dynamic. This range of emerging global tourism destinations in relation to stages of the destination life cycle used to explain their development and successive stages. The concept of destination development helps to discovery, growth, and expansion of the economy. The tourism industry is one of the largest contributors to the GDP of the world. It creates employment opportunity in the country.It improves the conditions of technological innovation (Scott, et al., 2012). It affects the social, economic and other factors. Tourism is a growth-oriented industry; it encourages the employment opportunities in the primary, secondary and tertiary sector. 

Cairo, Egypt because of the unique culture and attractive ancient history is attracting many people from different countries. The people of Egypt are also contributing to the growth of tourism. Tourism industry protects the intangible cultural heritage, performing arts, dance, oral tradition and music (Boes, et al., 2016). Unawatuna, Sri Lanka is also an emerging tourism destination because it is rich in cultural heritage, greenery, etc. The growing number of tourists in Sri Lanka is providing the rural people many job opportunities which help in the country’s growth.

A destination life cycle goes through five different stages which are development, involvement, stagnation, exploration, and consolidation. In the stage of exploration, the sites are visited by only a few tourists who are adventurous and attracted by a feature of nature. Then the destination moves to another stage which is involvement. In this stage, the attraction between the local community and tourists are limited, so the tourists only have basic services. Then the next stage is the development stage in which the growth of tourists increases in the destination and enters the stage of consolidation. In the consolidation stage, tourism becomes a major local economy component. The last stage is the stagnation stage; this stage is the effect of overpopulation in the destination which leads to the decrease of tourists in the place. 

M2 Evaluate and compare the importance of different factors affecting and driving tourism statistical trends in a range of different global regions

The Travel and Tourism industry is the largest contributor to the GDP of the economy. It includes the direct impact of transportation, entertainment, and accommodation.Globalization has increased the dependence between people, economies, and countries. The global tourism industry is growing rapidly it handles new challenges of different sectors. Tourism industry helps in the expansionof business in the international market. Tourism has promoted economies and societies to encourage the transfer of goods, knowledge, and ideas (Buckley, 2012). Tourism sector promotes cultural awareness, traditions, and local cultures.The amount of money earned from tourism sector is used for development of infrastructure and services. Cultural factor also has an effect on the demand for tourism. Millions of people go on cultural tours to know the different cultures of other nations.

D1 Critically evaluate the impact of both key and emerging markets, and significant factors affecting global tourism

According to Hall, et. al., (2013), there are various factors which influence the running of the tourism industry. Few factors affect the tourism industry such as environment at the destination, economy of country and technologies. It includes environmental factors, socioeconomic factors, historical & cultural factors, religious factors and other factors. These factors affect the development of tourism. Environmental factor includes good climate and nature. Socioeconomic factor includes accessibility, accommodation, amenities and ancillary services. Historical and cultural factors state that tourists attracted to places of rich cultural heritage. People love to explore new places and destination which have famous ancient monuments and marvellous forts.

LO3

P5 Investigate the role and responsibilities of key international organisations in the development of global tourism

The global tourism is the fastest growing industry in the world and also one of the most significant sources for growing Gross Domestic Product and employment. Tourism is helping the countries to grow their economies by creating many job opportunities to the unemployed people of the country. 

WTM that stands for World Travel Market is the place for the professional of the travel and tourism where they get the latest insights, trends, and news about the tourism industry from all around the world. In the videos and blogs of the WTM insights the expertise professionals of travel sector from across the globe share their knowledge and skills. The WTM has created many business and personal opportunities from the events of world travel and tourism and made the network of business of tours and travels strong with the global reach.

IATA is the official organisation of trade for the airline of the world in which there are more than 85 nations that participate in this trade organisation. International Air Transport Association is the full form of IATA. For the carriers, a polled resource is provided by the IATA for creating the public service throughout the world for the industry of airline, routes and traffics, scheduling, and for standardizing the services of the industry of airline. 

WTM and IATA are responsible for promoting the regularity, safety, and economic in the air transport. They are also responsible for making strategies that can help the tours and travels companies to improve the tourism industry in every country. They analyse the problems that is arising and that may arise which can make the development of the global tourism and solve the problems together so that the development in tourism does not stop. 

M3 Evaluate the significance of key organisations in the growth and development of global tourism

The contribution of a highly acclaimed industry, travel and tourism to the universal economy has improved in the past period. North America is the main supplier of this area, which is closely related to North East Asia and the European Union. Due to its less industrial tourism, areas like North and Sub-Saharan Africa have very little effect. However, allowing for the World Travel and Tourism Council, some of the wildly increasing tourist terminals in Africa may be born, including Angola, Namibia and Zambia. This is probably due to the understanding of profits that can provide travel and tourism for a country’s budget, or due to the increasing popularity of low-travel destinations among global visitors (Goldberg, et al., 2018). It is not to say that the travellers are still not touring certain tourist destinations in their tourist destinations – the number of foreign tourists in the United States, for example, is still increasing each year and by 2018 more than 40 million Expected to be In 2015, the best-classified nation in Travel and Tourism Effectiveness was Spain with 5.31 out of seven. The directory was part of the “The Travel and Tourism Affordability Boom 2015: Development with Amazements”. In the report, the economies of the universe have been measured on the determination of their travel and tourism growth and its effect on the formation of jobs.

LO4

P6 Review the significance of various threats, issues and challenges to the future development of global tourism.

Below are some threats, issues and challenges to the development of tourism: 

  • Tourism is a high tax business. Some communities outside the travel and tourism business understand how much a traveller pays. In some places, about 40% of the cost of the commodity comes from supplementary taxes. When the administration official claims that they should provide additional security features to the visitors, they habitually do not pay attention to the fact that visitors are not only spending the entire expenditure but also add money to the local economy through the payment of taxes.
  • A trial will continue in political circumstances for the tourism trade. At the global level, tourism will continue to deal with more versatile and deceptive fundamentalist authenticity. For example, despite governments demanding that they support tourism, visa borders have developed more complex (Deery, et al., 2018). Apart from this, no nation-state can be free from street protests, terrorism, politically-based riots, official red adhesive tape or war. These situations not only provide poor marketing to the hosted area but make travel difficult and less attractive.
  • Travel and tourism, which accounts for 9.8% of the domain’s GDP, has an increased quantity of women in the service, and fuel emerging from many emerging countries can play a key role in most of the 17 aims under the SDG (Hoogendoorn and Fitchett, 2018). Security, resource constraints, demography, corporate ethics and waste management are all such problems which will affect the particular nature, in which future travel and tourism will continue to work.
  • The stress of binding states of poor portable conditions. Specific current influences that, despite being impractical at being stable, the journey is no longer stress-free. Not only is air tourism progressively problematic, but various forms of transport are no longer allowed. All types of travel and tourism industry have been barred from what they deserve and prices have increased in many. With these limitations, many parts of the business are from partial recruitments or poor consumer service. Yet these strains have not diminished in travel, but the likelihood of such a tendency is very high.

M4 Analyse the implications of significant threats, issues and challenges to global tourism

Tourism is one of the largest and fastest developing trades in the world. It is the main source of income for many areas containing developing nations. Environmental and economic threats generated by weather change have created serious concern between countries around the world. Along with this, there is a double connection between tourism and weather change. Weather is a major resource for the tourism trade and, more remarkably, tourism itself is liable for many of these weather and environmental problems (HeydariChianeh, et. al., 2018). This area is a non-negligible contribution especially for weather change through issues such as greenhouse gas emissions and physical effects on the nature of natural resources, environmental pollution and the nature of ecosystem deprivation. The tourism sector can play an important role in removing the global environmental tasks if the origination and resources of this region are fully converged and oriented towards this general objective.

D2 Make justified recommendations for Government and other international organisations for managing future tourism development in response to threats, issues and challenges.

As in the roles & responsibilities of International tourism organization, Thomas Cook,Travelodge &TripAdvisor is already discussed that how these organizations get developed and make growth in their sector, and how these will be important for the Tourism Consultant Network to make its services better in global tourism (Hassannia, et. al., 2019). The Tourism Consultant Network many issues, threats and challenges faced in the development such as taxes which are very high and this thing will reduce the number of tourists, so there are many suggestions to resolve these types of concerns to global tourism.

CONCLUSION

In this study, it was discussed about the nature & scale of global tourism and the data to exactly detect the nature and trends of tourism at that level. In this report characteristics of generating main travellers and achieving the areas of the world was examined, and also that how these things have influenced the developing markets. Its characteristic & growth of developing markets & purpose districts as assessed, in the development of the key role of the department was reconnoitre and also the issues & challenges to the global tourism in future development were evaluated. The whole points were discussed in the reference of Tourism Consultant Network.

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