Essay about Enron Who was at fault - 1664 Words

Most of the world has heard of Enron, the American, mega-energy company that â€Å"cooked† their books (Gupta, Weirich Turner, 2013) and cost their investors billions of dollars in lost earnings and retirement funds. While much of the controversy surrounding the Enron scandal focused on the losses of investors, unethical practices of executives and questionable accounting tactics, there were many others within close proximity to the turmoil. It begs the question- who was really at fault and what has been done to prevent it from happening again? The story of Enron begins in 1985, with the merger of two pipeline companies, orchestrated by a man named Kenneth L. Lay (Zellner Forest, 2001). In its 15 years of existence, Enron expanded its†¦show more content†¦Based on these inflated numbers, Enron funded management bonuses as a percent of reported net income, subject to decrease if management failed to meet goals for earnings per share (EPS). By establishing this type of bonus plan, the board essentially put out the word that company success was based on growth in earnings and EPS was to be the first priority. Managers and employees were encouraged to concentrate on producing as much accounting profit as possible (Stewart, 2006). This way of thinking became an underlying issue to the failure of Enron. Numbers became the ultimate goal, which led to tunnel vision and lack of ethical standards and reporting among those on the inside. While the unethical decisions made by key Enron executives aided in the downfall of the company, they are not the only parties at fault in one of the largest corporate fraud scandals in history (Hayes Ariail, 2013). In the world of business, there are other internal controls in place to help insure that the rules are being adhered to. One of these controls is in the form of a company’s Board of Directors. One of the legal duties of board members is the duty of care. This requirement in and of itself means that board members have a legal obligation to ensure that company executives carry out their responsibilities in compliance with the law (Hartman, DesJardins MacDonald, 2014). However, Enron’s Executives and Board of Directors wereShow MoreRelatedEnron: Need To Be Stricter Regulations And Accountability1188 Words   |  5 PagesThere are a number of appalling facets about the 2005 documentary Enron: The Smartest Guys in the Room. This film details the rise and collapse of one of the most successful companies in modern times in the United States, and demonstrates a culture of debauchery that seemingly extended beyond its doors to encompass aspects of politics, legislation, banking, and general accounting principles and practices. In that respect, it is not without difficulty that the prudent viewer can determine just whatRead MoreEnron, The Natural Gas Provider Essay923 Words   |  4 Pages Enron, the natural gas provider turned trader of natural gas commodities and in 1994, electric, was once touted as the seventh largest company in America. Kenneth Lay, founder, began changing Enron from just a provider into a financial energy powerhouse. Lay took advantage of the dot-com boom of the late 1990’s by creating Enron Online, an internet trading platform. Internet stocks were valued at astronomical prices and were all the rage on wall street, who accepted the increasing prices as normalRead MoreThe Rise and Fall of Enron1532 Words   |  6 PagesMost of the world has heard of Enron, the American, mega-energy company that â€Å"cooked their books† ( ) and cost their investors billions of dollars in lost earnings and retirement funds. While much of the controversy surrounding the Enron scandal focused on the losses of investors, unethical practices of executives and questionable accounting tactics, there were many others within close proximity to the turmoil. It begs the question- who was really at fault and what has been done to prevent it fromRead MoreThe Ethics Of The Enron Scandal861 Words   |  4 Pagesmodern American history filed for bankruptcy. Enron, a seemingly invulnerable company would eventually provoke sweeping changes in regulation that controls the management and accounting of public companies even to this day. The Enron scandal has come to be known as one of the prime audit failures of all time and serves as a classic example of corporate greed and corruption. However, for the generat ion that watched in horror as corporations such as Enron fell along with the stock market, this scandalRead MoreThe Enron Scandal Of A Company1193 Words   |  5 Pageswell. What if this company falsifies their records and in a couple of days the company and its stock value go from $90 per share to just a penny per share. You lose your money just because a company cheated and stole your money. This is what the Enron scandal did to thousands of people. It could have been stopped if more forensic accountants in the world are checking on the companies. This way they don’t lie about their stock value. Forensic accountants are in charge of checking business financialRead MoreManagerial Ethics: Enron Case Study1392 Words   |  6 PagesIntroduction The book The Smartest Guys in the Room describes the Enron fraud case. Enron, the Houston-based energy trading company committed systematic fraud over the course of several years before finally being subject to investigation. Ultimately, the company was shut down and the principals were prosecuted. There is, in essence, no real ethical dilemma in the Enron case. A true ethical dilemma would have a dilemma component, whereas Enron was outright criminal behavior from the outset. NeverthelessRead MoreEnron : The Collapse Of Enron1644 Words   |  7 PagesEnron was once one of the world s leading energy companies by reshaping the way natural gas and electricity were bought and sold. They filed the largest corporate bankruptcy in American history in 2001. Enron Corporation was an energy company running out of Texas that was started when two companies, Houston Natural Gas and InterNorth, merged together in 1985. By 1992, Enron became the largest seller of natural gas in North America an d began to offer other services like wholesaler trading and riskRead MoreCorporate Fraud975 Words   |  4 PagesCorporate FraudÂ…when you hear those words the first, most recent incident, many think of is The Enron Scandal. This same scandal produced the Public Company Accounting Reform and Investor Protection Act of 2002. This much needed act created the Public Company Accounting Oversight Board under the Security Exchange Commission s supervision. This board sets accounting standards and investigates Certified Public Accountants and companies to ensure they are following the guidelines set forth. ThisRead MoreThe Smartest Guys At The Room : The Amazing Rise And Scandalous Fall Of Enron1654 Words   |  7 PagesIn the Room† the amazing rise and scandalous fall of Enron goes into great detail of what happens when a company has no ethics. It could be said that ethics was the last thing on the minds of the executives that worked at Enron. People employed at Enron cared about two things the stock price of the company, and the money they could put in their own pockets. This was what caused the fall of one of the biggest energy companies in the U.S†¦ Enron failing did not happen overnight it took years for allRead MoreThe Enron Conglomerate : The Fourth Greatest Income Earning Corporation1430 Words   |  6 PagesThe Enron Conglomerate was established in 1985 from its command center located in Houston, Texas which is the seventh greatest income earning corporation in the U.S. The first scandal that Enron suffered from was from a merge they made with Valhalla which is a small oil trading corporation centered in New York. A group of traders maxed out its trading limits costing Enron millions of dollars. Kenneth Lay was the CEO of Enron but partnered with Louis Borget. He began manipulating the accounting books

Islam, Terrorism, Jihad and Media Essay - 1757 Words

Islam, Terrorism, Jihad and Media A bomb goes off in a marketplace in Tel Aviv. A suicide bomber launches himself in a bus full of people in the street of Baghdad. Foreign tourists get massacred at a holiday resort in Nairobi, Kenya. This can go on and on. We all have heard this kind of pathetic news in the media. These kinds of incidents are widely known as Islamic terrorism according to the western media. All such incidents have come to be identified with the religion of Islam. Such incidents from past and present have undoubtedly affected Muslims worldwide and more so in the West. Any Muslim, who wants to practice his/her religion and expresses the pious desire to live under the umbrella of Islam, is labeled a fundamentalist or†¦show more content†¦The answer is simple. Such actions, if not sanctioned by the religion, have no place in Islam. They are not Islamic and should not be thought of as Islamic. The word jihad sends shivers down the spines of many Westerners. It readily comes to their mind that this term is associated with violence and oppression. However, it must be said that the meaning of jihad, as a holy war, is something which is totally foreign and not from Islam. By simply looking into the sources of Islam, one will be able to know that the true meaning of jihad is to strive/make effort in the way of Allah. Thus striving in the way of Allah can be both peaceful and physical. The Prophet Muhammad (saws) said: quot;The best jihad is (by) the one who strives against his own self for Allah, The Mighty and Majesticquot; In the Quran, Allah also says: quot;So obey not the disbelievers, but make a great jihad (effort) against them (by preaching) with it (the Quran)quot; (Surah Al-Furqan 25:52) By controlling and fighting against ones desires, the Muslims can then also physically exert themselves in the path of Allah. It is this physical or combative jihad, which receives so much criticism. Because of the sheer ignorance of this type of jihad, Islam is regarded as terror, and Muslims are regarded as terrorists. However, the very purpose of this physical jihad is to raise the word of Allah uppermost. nbsp;nbsp;nbsp;nbsp;nbsp;Anyone whoShow MoreRelatedTerrorism, I Am A Muslim And I Am Against It1461 Words   |  6 Pagesreceive their recompense from their Lord. They have nothing to fear, nor will they grieve† This is how Islam inculcates Muslims not to judge others, because obviously it’s the Lord who does that. Despite this verse and many other verses in Quran which promote for peace and love among humans, still people combine Islam with terror. I have seen many false allegations about Islam in the media. All that made me wonder, did I understand my religion wrong? What really interests me is whenever I lookRead MoreTerrorism And The Terrorist Threat Essay1567 Words   |  7 Pagesweapons and pilotless drowns could achieve without counterproductive political effects.† (Townshend) And to further compound the issues within counterterrorism, views regarding Islamist terrorism appear to be divided even among the experts. Bruce Hoffman and Marc Sageman, two of America’s leading theorists on terrorism and counterterrorism, held opposite views on how to deal with the Islamist terrorist threat, which erupted into a significant debate between the two in 2008. While Hoffman stressed thatRead MoreJihad : The World Is Mindful Of The Term `` Jihad ``1407 Words   |  6 Pagesworld yet controversial, the world is mindful of the term â€Å"Jihad†. The term has been coined and implemented negatively by the extremists in the name of Islam resulting in a shaken misbalance in the Islamic as well as in the rest of the world. In the light of recent events, the Arabic word â€Å"Jihad† has gained vital attention. The reason I chose this word is to make a little effort providing true and basic insight of jihad as described in Islam. Most people are aware of th is term, use and criticize itRead MoreThe Art of Jihad Documentary1598 Words   |  7 Pages1/11/2011 â€Å"The Art of Jihad† Documentaries have a huge impact on one’s thoughts and beliefs. The Art of Jihad is one of the most interesting documentaries I have ever seen. It is about three American artists discussing the stereotypes about Islam especially in USA, and how they try to reveal the actual meaning of Islam through their works. Non-Muslim people, especially non-Arabs, do not know the real meaning of Islam. These people always misjudge Muslims and think that Islam tells us not to be peacefulRead MoreEssay on The Terrorists Attack on the World Trade Centre in New York1205 Words   |  5 Pageswestern concept about Islam and Muslims. Moreover, Islamic concept â€Å"Jihad† is criticized and it is questioned among Non-Muslims. 9/11 attack not only effects non-Muslims but also the Muslims who have no connections with the terrorist groups. As well as they do not support these terrorism. These Muslims face the hatred of the non-western people. They feel guilty about the Sin, they neither commi t nor support. After 9/11, The Muslims all over the world called as terrorist and Islam is considered as religionRead MoreReligious Terrorism : Islamic Terrorism1586 Words   |  7 PagesHonors December 2, 2016 Religious Terrorism Terrorism is defined as the use of violence and threats to intimidate or coerce, especially for political purposes. In other words terrorism is not a good thing. There are numerous types of terrorisms. Some are terrorists for political reasons, some are terrorists for religious reasons, and some are terrorists simply because they are out of their mind. Religious terrorism is one of the fastest growing types of terrorisms today. According to a survey doneRead MoreIt Is Absolutely Certain That The Current Political Climate1684 Words   |  7 Pagespeople. A substantial amount of this hatred and discrimination is toward Muslim Americans and is known as Islamophobia. Islamophobia has always been prevalent in the United States with reasoning ranging from colorism to the idea that the religion of Islam and Muslim people are just too â€Å"different† from what an American â€Å"should† be. Unfortunately, Islamophobia in the U.S. drastically increased after 9/11 and the discrimination and prejudice is still just as harmful if not more harmful than it was 16Read MoreChristianity and Islam Essay948 Words   |  4 PagesChristianity and Islam are the two largest religions in the world, founded upon the principal belief that there is one God who created the world. Nevertheless, both ideologies have their own accounts that have contradicted each other since their beginnings. As time changed these religious sects have undergone a numerous number of events that question their validity and have led to controversy in recent years. Unequivocally both sects differ in many significant fragments of their doctrinesRead MoreThe Positive and Negative Impact of the Portrayal of Religion1108 Words   |  4 PagesThe portrayal of religion has had both a negative and positive impact. When people hear about religion, they either cringe at the fact of following outdated rules and norms, or issues that deal with politics and the media. The two most popular religions, Islam and Christianity, must be analysed to identify what religion is. While further examining these closely, a finite argument can be made that religion is unfavourable for the modern society. Our society holds the key main ingredients to theRead MoreIslamic Misinterpretations and Suicide Attacks1160 Words   |  5 PagesIslam is not just a religion or system of theological thought, but it is the primary source for creating legal norms, guidelines, and demands in order to adhere and devote one’s life to Islam. Islamic doctrine delineates between acts of martyrdom and what the Western world describes as terrorism. Islamic jus in bello, or the laws of waging war, clearly outlines actions that can and cannot be justified according to Islam when engaged in war. Historical Islamic definitions of jihad in modern society

A Strange Man of Many Talents Essay Example For Students

A Strange Man of Many Talents Essay Cadyn AllenApril 1, 1999CP English IVMs. WadeA Strange Man of Many TalentsLewis Carroll by todays standards would be considered a weirdo. Alices Adventures in Wonderland was written by Charles Lutwidge Dodgson, also known as Lewis Carroll, who was a separated man who delighted in the consortship of little girls. Alices Adventures in Wonderland was influenced by Lewis Carrolls life. Lewis Carroll, one of 11 children, was born at Daresbury in Cheshire England. As a child, he lived in remote country places. After Daresbury his next home was Croft in Yorkshire and he depended very much on the company of his brothers and sisters, Lewis made up silly games and told silly stories for fun and entertainment. He was a successful scholar that took a distinguished degree at Christ Church and became a senior student in 1855. He contributed humorous poems and parodies to periodicals and for one of these, The Train, he used the pseudonym Carolus Ludovicus. Later he reversed it and retranslated it Lewis Carroll. Lewis was also a mathematician who published a formidable body of work. He was a very shy man with a stammer and always responded to children. He was immediately at ease with them and in their company his stammer left him. The Cambridge Guide to English Literature states that, he never married, but he probably had an unhappy love affair when he was young: The evidence is inconclusive (301). Carroll was uncomfortable around people of his own age but was comfortable around children especially little girls. Lewis was always fascinated with little girls; he liked to read to them, to make up stories for them, to draw them, and to photograph them sometimes in the nude. Richard Kelly in Lewis Carroll Revised Edition states Lewis Carroll said I confess I do not admire naked boys in pictures. They always seem to me need clothes: Whereas one hardly sees why the lovely fans of girls should ever be covered up (152). Among the children who became his friends were those of George MacDonald and the Dean of Christ Church, Henry George Liddell. The second Liddell child was a three year old girl named Alice. Six years later he told the Liddell children after a boating party the story of Alices adventures underground and he undertook to write it out for Alice. Lewis Carrolls life had a large influence on the story. He played a lot of games and told stories to pass the times with his brothers and sisters. Lewis didnt have many friends, The Cambridge Guide to English Literature states because of his intimate shyness, although he was subjected to a certain amount of bullying (901). Carroll also had a stammer and was deaf in one ear, and was left handed which also contributed to his low self confidence. According to Richard Kelly in Lewis Carroll Revised Edition In a letter to Mrs. Jones Chataway, Carroll goes a step beyond nightdresses in requesting to photograph her daughter Gertrude in the nude (9). As each child matured they were replaced by a child who shared the secret world of childhood with him. Carrolls understanding and love of children had been combined with the precision of a mathematician to produce two wonderful books that as the author himself stated do not teach anything at all (145). Alice was his favorite among all of the children. One could probably say that he had a fascination with her. The main character in Alices Adventures in Wonderland is of course Alice, a girl that follows a white rabbit down a hole. The White Rabbit also plays an important role. He is running late for a meeting with the Queen. The Caterpillar is a smoking smart alex who Alice comes upon. He is wise and provides her with knowledge in her nonsense surroundings. The Cheshire Cat is a character who talks nothing but nonsense to Alice, and sometimes his whole body is not seen. He also makes fun of the King and Queen towards the end of the story at the croquet ground. The Mad Hatter, Door Mouse, and March Hare engage Alice in a nonsense tea party. The Door Mouse is trying very hard to stay awake. The March Hare goes along with the Mad Hatter in all he does and says. The Queen of Hearts is an angry woman who replies to almost everything with off with their head (77). The King of Hearts just follows the Queen around and does what she says. This could be contributed to his life. He spent most of his t ime with little girls, playing games, telling stories, and photographing them. He may have made the Queen the dominating figure because of his fascination with young girls. .ued0075b45b39ed99b2a4a738e0365d4b , .ued0075b45b39ed99b2a4a738e0365d4b .postImageUrl , .ued0075b45b39ed99b2a4a738e0365d4b .centered-text-area { min-height: 80px; position: relative; } .ued0075b45b39ed99b2a4a738e0365d4b , .ued0075b45b39ed99b2a4a738e0365d4b:hover , .ued0075b45b39ed99b2a4a738e0365d4b:visited , .ued0075b45b39ed99b2a4a738e0365d4b:active { border:0!important; } .ued0075b45b39ed99b2a4a738e0365d4b .clearfix:after { content: ""; display: table; clear: both; } .ued0075b45b39ed99b2a4a738e0365d4b { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .ued0075b45b39ed99b2a4a738e0365d4b:active , .ued0075b45b39ed99b2a4a738e0365d4b:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .ued0075b45b39ed99b2a4a738e0365d4b .centered-text-area { width: 100%; position: relative ; } .ued0075b45b39ed99b2a4a738e0365d4b .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .ued0075b45b39ed99b2a4a738e0365d4b .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .ued0075b45b39ed99b2a4a738e0365d4b .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .ued0075b45b39ed99b2a4a738e0365d4b:hover .ctaButton { background-color: #34495E!important; } .ued0075b45b39ed99b2a4a738e0365d4b .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .ued0075b45b39ed99b2a4a738e0365d4b .ued0075b45b39ed99b2a4a738e0365d4b-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .ued0075b45b39ed99b2a4a738e0365d4b:after { content: ""; display: block; clear: both; } READ: Motor Parts Corporation EssayThe story starts with Alice getting her lessons under a tree when she dozes off and is awakened by a White Rabbit. She follows the rabbit into a whole and falls (17-19). She looks through a door an the bottom and sees the loveliest garden in the world (20). Throughout the story she is trying to get to the garden. The garden is the Queens court which she comes to for a croquet game towards the end of the story (74). The story may relate to him maturing in his life. As a child he read in the family library which may be an insight to Alice receiving her lessons alone. The White Rabbit could represent young girls and how he fell in love with them w hich relates to Alice falling down the hole. After falling in love with them he thought they were the most beautiful beings in the world, so he spent his life in the company of them. His dream could have been for women to be in charge and that is where the Queen of Hearts character came from. Alices Adventures in Wonderland is full of meaningless dialogues. An example is a part from the tea party, have some wine, the March Hare said in an encouraging tone. Alice looked all round the table but there was nothing but tea (66). In an example from the Queens croquet game he wrote Alice thought she had never seen such a curious croquet-ground in her life: it was all ridges and furrows; the croquet balls were live hedgehogs, and the mallets live flamingoes (79). Carrolls use of math could have been present in him choosing cards for the Queens workers and soldiers. A remark from Alice says Who cares for you? said Alice (she had grown to her full size by this time). Youre nothing but a pack of cards!' (114). The story includes a lot of the elements of his life which makes it a interesting and entertaining story for children of all ages. Lewis Carrolls life influenced his book Alices Adventures in Wonderland. Lewis was an excellent mathematician, but at the same time he could be very silly. He was a little weird especially in his activities with young children. He is still remembered and many movies have been made about his story Alices Adventures in Wonderland. He was a man who entertained many children during his life and after his death. His stories will last throughout time. Works CitedCarroll, Lewis. Alices Adventures in Wonderland. New York: Penguin Group, 1960. Kelly, Richard. Lewis Carroll Revised Edition. Boston: Twayne Publishers, 1980. Lewis Carroll. The Cambridge Guide to English Literature, 1983.

The Inn on Cortes Island

The tourism industry in British Columbia has been growing rapidly over the past years thus making it quite possible for hotels within the hospitality industry such as Cortes In to enjoy more commercial success. As of the year 2000, the region had over 22 million visitors who raked in an amazing $ 10 million.Advertising We will write a custom assessment sample on The Inn on Cortes Island specifically for you for only $16.05 $11/page Learn More Additionally, the tourism mix of the district of British Columbia did not only come from locals but also from foreigners ensuring that demand is stable. Despite the fact that business opportunities did present themselves for those within the hospitality industry in Cortes Island, it apparently became difficult for those within the tourism industry especially inns such as The Inn on Cortes Island due to the threats on tourism industry that were brought by the 9-11-01 attack by terrorists that reduced tourist traffic. Issues of human resource availability and skill levels of those employees expected to serve within the industry also made it hard for the industry to flourish due to the perception jobs within that industry did not pay well. Additionally, the outbreak of SARS and the west Nile virus made it hard for the tourism industry to flourish. The Task environment within the Island was suitable and good for business considering that the industry raked in over $ 10billion annually. Vancouver was well known for its business expos and this had made British Columbia a respected destination in the tourism industry attracting millions of people especially during expos which brought the society together. The only form of political hostility arose from terrorism activities that followed 9-11 bombings. The availability of websites, DVD/CD technology available to customers meant that the customer experience was maximized. The task environment was thus highly favorable due to the fairly good political, economic and socio-economic culture that was good for tourists arriving from local and international destinations. The Hotel and hospitality industry within British Columbia was a free and fair industry in accordance with the principles of free market economy, meaning that just as Jonathan Armitage entered the industry since he had the capital, any other participant could to enter the industry. This fact made the threat of entry quite high within the market. Due to the fact that there were other many similar Inns and resorts in the region, some of which were in the high end and low end of the market this meant that consumers had a wider range from which they could choose from. Thus, making the business environment even more competitive.Advertising Looking for assessment on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Hollyhock retreat resort is one such resort that offered camping facilities which can serve as a substi tute for hotel rooms. Despite the unique ambience of the ICI, the presence of camping sites and Rustic dorm rooms have in some way increased the threat from substitute products because individuals who don’t opt to sleep in rooms may go to tents hoping to get close to nature. The product and service The Inn at Cortes Island is an establishment that targeted mainly middle income earners who paid somewhat average fees to enjoy their services (the average fee per room is $ 225 and $ 110 per cabin). These prices were found to be suitable for middle income earners who frequently toured the Inn and recommended it to others. The problem is that the price is too high for some target customers turning them away. The Inn had both rooms and cabin spaces facing the beach, Jacuzzi tubs, fireplaces, DVD/CD players for entertainment, and high quality linen in rooms, that were suitable for couples, tourists and even weeding events. Additionally, apart from offering sleep facilities the Inn al so provides local gourmets and exclusive food. The product design should also be differentiated for high end customers. The design of the room was quite cool because it was done by artists who ensured that earth tones were used to create an atmosphere of relaxation which was expected by the customers. In addition, the rooms and furniture ware fitted with high quality linen to ensure that the place looked good. The design of place has no weakness. The Inn used its website as part of their promotion tool and thus designed it properly. Additionally, the hotel depended upon word of mouth to promote its brand.ICI management also hired A media consultancy farm to create publicity for them occasionally. The current promotion efforts are not enough and should be more vigorous. Market segment The intended market of The inn Cortes Island was tourists and locals who especially fell under the middle class bracket of the economy who were searching for a unique spot that had the best ambience. Th e segmentation is good and highly attractive having no weakness. Other competitors within the Island were Hollyhock Retreat Resort and April Point, which provided high end services; also there were other many resorts and Inns in the Island which could provide services similar to ICI’s thus making competition stiffer. Because the Inn did not offer high end services it is bit of a disappointment for customers with high end needs.Advertising We will write a custom assessment sample on The Inn on Cortes Island specifically for you for only $16.05 $11/page Learn More The competitive advantage of ICI was the Inn had unique ambience and design, a good website and world-class cooks together with the availability of capital to expand the business. The Inn serves the affluent middle class who need to run away from the busy urban environment and go to the Island to watch and enjoy nature. Customers visiting this inn usually wish to have some peace and spend time with their loved ones. The technology The availability of a beautifully designed website has made it quite easier for the Inn to access its clients and serve them better. Also other technologies such as the availability of DVD/CD players for entertainment have ensured that guests who visit the place are well catered for in terms of entertainment. Management Jonathan is the sole shareholder and CEO the Inn. He decided to hire someone who would take the position of a general manager to ensure a smoother day to day running of the organization. ICI has its organizational structure divided into four main functional divisions, which include the front desk, housekeeping, maintenance and grounds, and food services each of this functional area is headed by an individual manager. At the beginning, the owner had decided to hire a mother and son team with the mother serving as the general manager while the son serving as the chief chef but the decision turned out to be a bad one the forci ng the owner to employ a more experienced and professional general manager, Edward Bourgogne. Upon his arrival the general manager put in place new systems and brought in a new chief chef Jackie Newcome, a move that saw improvement in the relationship and quality of work in the Kitchen. Investment-Pay Back Exit Plan The construction of the Inn was made possible by the help of loans and the forecasted Revenues are expected to assist the shareholder to repay the loans. The management forecast expects that approximately 70% occupancy rate of the Cabin throughout the year will be needed in repaying the loan. The bank current total loans have accumulated to $4.8 million, with the latest loan awarded to ICI being $1.8 million the current twelve-monthly principal and interest payments are expected to be around $38,700 per month, which will be spread across loan repayment schedule of 240 months. The business expects to make revenues of $2.2milion and this is expected to increase by 10% with in the following year although no profits are expected in first two years as the company is expected to start breaking even in the third year of its operations. This will ensure that the company repays its loans comfortably.Advertising Looking for assessment on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Tables Table 1. The Business Environment Opportunities Threats Political The resort was established after an approval was made by the local council, federal fisheries department and island trust The state supports tourism industry The September 11 incidence brought a decline of the number of tourists in British Columbia Economic The state puts tourism as a major source of the nations revenue totaling to about $10 billion from a total of 22.5 million overnight visitors Downturn in the economic position of the state reduces overall demand of services and products Societal The resort has established a reputation as being a family oriented resort Most residents residing in and around the result are frequent visitors The population present is small constraining the availability of staff People look at tourism sector with no good employment opportunities due to low pay Technological The resorts website provide quality and in-depth information to its c ustomers and aspiring visitors The media firm offers the resort an opportunity to avail information about the resort to the people for publicity purposes Not each person is conversant with new technologies Table 2. Industry Conditions Competitive Conditions High Neutral Low Threat of new entrants x Bargaining power of customers x Bargaining power of suppliers x Threat of substitutes x Intensity of competition x Key success factors Table 3. Financial Size-Up Strengths Weaknesses Profitability and Cash Flow: Has helped improve its dining room to fit in a world class menu It has also helped them estimate the expansion expenses needed Strains the relationship between the resort management and the banks Liquidity: Helpful for short term financial issues enabling the business meet its current obligation It can uncover the weaknesses in the financial position of the resort especially during bank scrutiny of the resort Stability : Indicates the strong interim profit performance of the resort The stability record may not be convincing to the banks due to poor timing for expansion plans Efficiency: Serves as standardized metrics to measure financial efficiency for investment opportunities Unexpected cash flow models may be used which will not much up predictions made Growth: the continuous interim performance of the Inn contributes to the need of wanting to undertake cabin expansion Constraints from financial sources hence intense scrutiny by the bank Table 4. Marketing Size-Up Strengths Weaknesses Market tactics Price Product Place Promotion The target market for the resort is the middle come earners meaning the place it quite affordable. It has a good reputation for food and beverage service. It’s situated along the richly stretched sandy beach with boldly well constructed rooms giving an earthling feeling that are featured with Jacuzzi tubs fire places dvd/c d players. In terms of product promotion, it has a media consultancy department that deals with publication for publicity purpose including a comprehensive website. Infatuation of the tourism industry leads to constant changes in the market especially in pricing Market analysis Segmentation Competition Competitive Advantage Customer Needs Its market segmentation targets the middle class hence affordable to many The resort is situated in a secluded area that is quite different from the urban environment It also enjoys an upscale world class menu for its clients Expansion plans will be an added advantage to the resorts competitors as it will attract more visitors The media consult department is a major advantage to the resort as it’s able to publicize to its target market. The poor cannot afford the resort facilities The product needs to be differentiated in market segmentation to provide high class customer services. Market strategy execution The strateg y was executed properly through positioning and segmentation giving ICI a good and definite market which it intended to serve. The management could have been more vigorous on implementing the strategy by launching more serious comprehensive campaigns. Table 5. Operations Size-Up Strengths Weaknesses Operations process Business operation are well managed hence the constant profit result Lack of organized and permanent staff Members Risk management issues The expansion plan is seen as A major project that will increase the number of visitors coming to the resort Its expansion plan is a risk taking step Legal issues Do not exist Do not exist Location issues Its strategic position creates a Good environment that is peaceful and fresh as compared to the city life Less staff for the resort due to low population size Use of technology Gives comprehensive information about the resort. Provides entertainment opportunity to the visitors Not each person is conversant with new technologies Table 6. Human Resource Size-Up Strengths Weaknesses Human Resource function Recruitment and Hiring Training and Development Compensation, Performance and Incentives Staff hiring and training was at first done quickly To retain staff members staff housing was a benefit for all staffs Employment of an individuals with decent leadership skills and with good interpersonal skills stabilizes staff relationship The rural location of the resort encounters low population for hiring staff members Most people discriminate the tourism sector because of its low payment Recruitment of employees is low due to small population size Leadership issues Organizational Structure Skills Development Teams and Teamwork Management Capabilities Its headed by a CEO who is the owner of the resort Besides the CEO, the resort has a general manager overseeing everyday operations including departmental managers Every staff membe r has to undergo training to develop their skills The resorts departments are divided into four each headed by a manger. The manager becomes the team leader of the department The resort was first run as a family â€Å"family team† which later became a problem Staff members do not stay on permanent basis Table 7. Technology Size-Up Strengths Weaknesses Technology concept and product Introducing DVDs/CDs was a good move to keep the visitors entertained just like in the urban areas. The concept of their comprehensive website provides quality information about the resort to those who visit it for any queries Not each person is conversant with new technologies Intellectual property issues Its competitive nature has increased the resorts ability to provide high value-added products and services at competitive price It Details company’s past experience to prove that the resort can execute on the opportunity It is not easy to put the company to b ank scrutiny Potential risk factors Expansion plans are promising to the growth of the business The expansion plans will have to surpass the internal challenges especially in the human resource department Table 8. Expansion decision Rationale and Risk Assessment Financial risk: Mitigated by: Financial planning, whereby the management laid out a good loan repayment schedule that would take close to 20 years to repay the loan easing stress on the shareholder. Market risk: Mitigated by: Developing a marketing mix that appeals tom customers and is up to date with competitors ensuring that ICI is more likely to succeed in the market Operations risk: Mitigated by: Hiring a good operations manager that is able to manage the employees and the heads of all, other department thus reducing conflict and enabling smooth flow of day to day activities. Construction risk: Mitigated by: By planning the entire construction process and assigning roles clearly to construction pe rsonnel in order ensure construction is according to schedule. Management risk: Mitigated by: Hiring qualified managers in all functional areas and hiring a professional operations manager to oversee management of the entire organization. This assessment on The Inn on Cortes Island was written and submitted by user Shiny Magpie to help you with your own studies. 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