Criminal treatment Annotated Bibliography Example | Topics and Well Written Essays - 500 words

Criminal treatment - Annotated Bibliography Example Considered the factors of age, sexuality and gender in the examination of crime, in conjunction with the issue being examined in the traditional class-based approach. The authors discussed topics ranging from criminology and the study of class, race, gender; victimology and the patterns of victimization; and criminal prosecution, among others. The book is comprehensive and relevant given the most recent information contained with the authors being professors of criminology and sociology. The contents and information in the book is highly relevant in the current research and are intended for various audiences ranging from students, practioners, researches and lawmakers, as deemed necessary. Byrne, James M and Faye S. Taxman. "Crime Control Strategies and Community Change – Reframing the Surveillance vs. Treatment Debate." Federal Probation (2006): Volume 70, Number 1, 3 - 12. Examined and discussed David Farabee’s contention that argued the ‘liberal’ treatment offender strategies in terms of their ability treat offenders by proposing an alternative offender change strategy. The authors, Byrne and Taxman, are both professors in the fields of criminal justice, and government and public policy, respectively; with the article being written fairly currently in perspective, thereby increasing the credibility and validity of the discourse. The intended audiences for the article are students and practitioners of criminal justice, who would benefit from the recommended change strategy encompassing both institution-based and community

Business Perpetuates Rather Than Reduces Inequality in the Society Essay

Business Perpetuates Rather Than Reduces Inequality in the Society - Essay Example This to a great extent has not been the case; in fact in many cases business has perpetuated inequality in the society. These inequalities are mainly manifested when it comes to the personnel in the business organization. The inequality comes in three major regimes; gender, class and race. This paper discusses how business increases inequality in the society rather than reducing it. Discussion First I will define the inequalities that occur in business organizations. As stated earlier the main ones are class, race and gender. Class refers to the differences in control over and access to the resources of the business organization. Class differences are manifested during employment and the wages that are paid. The hierarchies that may be created in organizations may create a wide gap between the top management of the business organization and the workers at the bottom. In large corporations the Chief executive officers sit at the top and wield more power than other workers in the busin ess. Such class difference might not be experienced in small businesses but still the owner or boss has class power over employees. Gender inequality is seen in the difference in beliefs of identities of men and women. Despite efforts to try to close the gender gap in business organizations, most top positions in organization management are still held by men while the low white collar positions like clerks and secretaries are dominantly held by women. Supervisory duties have always been assigned to men in many business organizations. This brings about gender inequality because men and women are not treated equally (Smith 2002). Race inequality comes about because of differences in physical characteristics, oppression, culture and historical domination justified by the underlying beliefs. Businesses owned by certain races in some cases discriminate other races when it comes to employment. They might fail completely to employ the other races or they may employ them and give them junio r positions. There are other differences that might be the base for inequality in business organizations. These include sexuality, religion, physical disability and age. Some business organizations may discriminate against the homosexuals when it comes to employment. There are also cases where certain religions have been discriminated in business organizations. These differences might be vital but they do not carry more weight like gender, race and class in creating inequality. The main intention of business organizations is to make profits (Banerjee 2012). The requirements that are placed for work ensure that the organization does realize profits. These requirements may cause inequality between genders and classes. In a business organization work is designed in favour of men who are totally dedicated to earn a living and do not have other responsibilities for family demands or children. Eight hours of continuous working, giving the work maximum attention, arrival on time and being able to work for extra hours if need arises are some of the general requirements for employees in business organizations. Since it is mostly the workers at the lower level who perform duties that are vital for the realization of profit for the business, it is not easy to relax these requirements for them. On the other hand, the top management may bend these rules for their members. A manager for the business organization may work in the organization on part time basis, may not be required to arrive early, he may also be undertaking other business and is rarely required to work for extra hours. This is not true for a junior employee. Since it is the top management

Descarte's Philosophy of Calling Mind as a Thinking Thing Essay

Descarte's Philosophy of Calling Mind as a Thinking Thing - Essay Example Hence the essence of the existence of human beings is their mind or soul, not their bodies. Descartes’ philosophy of calling mind as a thinking thing Rene Descartes is a French mathematician come philosopher of seventeenth century who is unanimously called as 'Father of Modern Philosophy'. Born in the year 1596 & died in 1650 due to pneumonia, Descartes produced lots of useful philosophical ideas which definitely make the basis for a modern anti-scholastic philosophy. The most famous & most controversial philosophical statement given by Descartes' was "I think, therefore I am" in his publication â€Å"the discourse on the method† in the year 1637, in which he explains that the essence of our mind is thought. If we do not think about things around us & about ourselves, we don’t make enough use of our brain & thus we remain insignificant. In the year 1639, he started his work on Meditations & wrote a book named â€Å"Meditations on First Philosophy†, which w as highly criticized by most learned people of that time & by the cathedral too, as according to them Descartes gave such ideas which contradict with religion & Christian faith. Most of his publications regarding meditations contain the answers to the objections of his previously defined ideas & he tried to clarify himself about the misunderstandings which arose about his method. In his first meditation, he discussed all the way that our sensory beliefs are not always trustworthy or reliable & mind is the only thing which can be termed as reliable as it thinks. In his second meditation, he argued that the mind takes the liberty of supposing everything to be nonexistent of which it has the least doubt of existing. However, during the process, as mind is the thing which is thinking the whole situation, so it must exist itself .This is among one of the greatest use of our mind (Descartes. 1641). Descartes formally presented a theory of mind-body dualism in which he argues that our body is composed of different organs & parts & our mind has no connection with it. As in his first meditation, he says that sensory organs are doubtful thus the body itself has no particular reliability. This absolutely does not mean that in this perspective, a human does not exist or is insignificant. But as compared to mind, body is nothing but a combination of solid joints. The concept of being deceived by someone or convinced on any point directly relates through mind, not from body. Hence for such things to happen, I must exist & I am a not a rational animal but a thinking thing that doubts, understands, affirms, denies, is willing, is unwilling, and also imagines and has sensory perceptions (Descartes. 1641). The point that our mind only considers those things to be existent, which show their existence, like the mind itself, was explained by thinking of something that has a very least chance to exist. If the existence is proved, Descartes happily conclude that as the particular th ing exists so it proves itself. However, if the supposed image or thing was not found existed by him, he was more than happy to say that anything on the world can be found if it exists, like human mind about which there is no doubt of existence. Mind is a creation of god which exists & thinks all the time about the existence or non-existence of other things. Hence â€Å"I† am not simply a combination of

Principle of Earth Science Essay Example for Free

Principle of Earth Science Essay The three stages according from the oldest to the youngest formation are granite, basalt and lastly andesite formation. This will discuss about the formation, composition, type of intrusion and cooling history of each stages. The granite formation is the oldest stage since granite is formed usually beneath the crust about 1. 5 km up to 50 km depth. Primarily, granite is composed of silicon and alumina about 72. 04% and 14. 42%, respectively. The formation of granite occurs through extreme metasomatism. Through metasomatism, elements are brought out by fluids like potassium and calcium to convert the metamorphic rock to granite. According to Himanshu K. Sachan (1999), granite in the northern Himalaya starts its cooling history at 705 Â °C and continued up to 650 Â °C in the range of 1. 2–2. 8 kbar. The next stage is the basalt formation. Basalt is composed of magnesium oxide, calcium oxide and low amount of silicon, sodium oxide and potassium oxide. The formation of basalt occurs when there is a volcanic eruption either under or above the. Mostly the formation of basalt occurs underneath the sea. Through the introduction of water the magma hardens to form the basalt. Basalt forms between 50km up to 100 km depth within the mantle and 150 km up to 200 km for some high-alumina basalt. The next stage will be andesite. The youngest of the formation is the perpendicular andesite. After basalt, the most common volcanic rock would be he andesite. The main composition of andesite is silica about 57%. Andesite is formed either by frictional crystallization or magma mixing with felsic rhyolitic. Melting and assimilation of rock fragments by rising magma to the surface form andesite.

Periods of European History that Demonstrated Changing Attitudes Towards the Education of Women :: European Europe History

Periods of European History that Demonstrated Changing Attitudes Towards the Education of Women Throughout the early portion of modern European history, women were never encouraged to undertake any significant education. Though the problem lessened over time, it was still a strong societal force. There were three major time periods when substantial changes took place in attitudes towards women's education -- the Renaissance, the Reformation, and the Seventeenth and the early Eighteenth centuries. The earliest time period, the Renaissance, may have actually been the most liberal time period for women's education. The church was the only force at this time that discouraged education. In Erasmus's book "The Abbot and the Learned Lady", The church's position on this issue says that education does not protect the chastity that was necessary for women. There were still, however, a certainty that women could and should be educated. For example, in Castiglione's book "The Courtier", it is stated that women are capable of everything that men are. Also, Roger Ascham has described his female student(the future Queen Elizabeth I) as equally bright as any other male student of his. Furthermore, in a letter by the poet Louise Labe`, she states a need for women to "raise their head above their spindles" and take up studying. The next age, the Reformation and the catholic Reformation, saw a dramatic and conservative change toward the attitudes of education for women. Martin Luther, a leader of the Reformation, was quoted as saying that God made men with broad shoulders to do all the intelligent, and women with broad hips to do the "sitting" and housework. Agreeing with Martin Luther, was Emond Auger, a French Jesuit, who said "there is no need for women to take time out from their work and read the Old and New Testament" and also that "Women must be silent in church". The third age of early modern European history is the seventeenth and early eighteenth centuries, in which men at large were still strongly against the education of women, but they had reached a compromise to some extent. They allowed women to be educated on a minor level, as Mme. de Maintenon(wife of Louis XIV) says "Educate your middle-class girls in the middle-class way, but don't embellish their minds", but a women could never go beyond that. It seemed also that some men had conflicting view points on this issue. In Moliere's play "The Learned Ladies", educated women are

Discuss the Aphorism “Small Firm Growth Being the Only Measure of an Entrepreneur’s Success”.

INTRODUCTION Business growth is a good goal for most firms in general and is given great weight by the society. This could be seen with the list conjured up by the media, such as ‘Forbes Fast-Growing Companies’ and ‘Inc Fastest Growing Companies’ lists (Hupato 2011). The reason small firm growth has been prioritised by policy makers and the society is mainly due to its contribution to the economy (Bridge, O’Neill & Martin 2009). Small firm and entrepreneurship have so often been linked together, and it has become common to acknowledge that all small firms are established by entrepreneurs.Hence, the terms such as growth, success and performance are often linked in the research of entrepreneurial success (Reijonen & Komppula 2007). However, if entrepreneurship is defined as creation of new economic activity, the aspect of firm growth is already defined the moment the entrepreneur introduced new products or services (Davidsson, Achtenhagen & Naldi 2010). In other words, growth is not an aspect of entrepreneurship if growth is measured solely on volume expansion of existing products or through acquisitions of existing business.Schumpeter has also mentioned that one can be entrepreneurial without being self-employed and vice versa (Utsch, Rauch, Rothfufs & Frese 1999). Entrepreneurship remains an enigma till date and the assumption that all small firms are creations of an entrepreneur is arguable. Davidsson, Achtenhagen & Naldi (2010) has described, even a superficial reading on the complexity of small firm growth literature could easily leave the reader confused. Thus, the aphorism of small firm growth being the only measure of an entrepreneur’s success should be looked upon from different perspectives.The dimensions of small firm growth and also the perspectives of entrepreneurial success will be analysed to see the degree of its correlation and to judge how true the mentioned aphorism is. What is small firm growth? Generall y, growth of a business occurs in phases in a small business life cycle. A business venture would normally encounter three-stage development process, namely the ‘seed’ stage, the ‘start-up’ stage and the ‘expansion’ stage (Mukherjee 1992).The ‘seed’ stage brings a well-conceived idea into existence, while the ‘start-up’ stage included employment and accumulating business capital, and the ‘expansion’ stage involves manufacturing or service capacity increment (Mukherjee 1992). On the other hand, Bridge, O’Neill & Martin (2009) has suggested five stages of small firm growth, namely ‘existence’, ‘survival’, ‘success’, ‘take-off’ and ‘maturity’. Helms & Renfrow (1994) has supported the concept of the five stages of various developmental growth stages when they conducted a research in United States.Bridge, O’Neill & Martin (2009) defi ned the five stages as the following: the ‘existence’ stage is similar to the ‘seed’ stage explained previously, while the ‘survival’ stage involves customer familiarisation with the firm’s product or service. The ‘success’ stage is when there are options for further growth, thus the ‘take-off’ stage where the owner opted to grow the business larger. The business will reach the ‘maturity’ stage when it displays the characteristics of a large company.However, the mentioned researchers have concluded that it is difficult to clearly define the business development stages clearly during throughout the business cycle (Bridge, O’Neill & Martin 2009). Despite the challenging task to categorise growth, researchers would still generally use the small business growth as indicator of success since it is common parlance to suggest that success requires growth, to stand still is to die (Geneste & Weber 20 11). There are enormous literatures on theories of growth and are most commonly associated with generation of jobs.In the early years, entrepreneurship has been the main focus due to its significant employment opportunities that was created. This reason remained strong today thus gaining the attention from policy-makers in each country. In fact, the number of employees a firm has become an important factor for classifying a small firm (Helms & Renfrow 1994). Research shows that young high-growth firms (also commonly known as ‘gazelles’) generate a large share of all new net jobs (Roper 2012).Robbins, Pantuosco, Parker & Fuller (2000) has also confirmed in their research that a state with large quantity of small business has lower rates of unemployment compared to other states that has little quantity of small businesses. The reason employment rates are valuable in measuring growth is because each firm will grow until they reach the optimal size that corresponds to minim um average cost (Hart 2000). Thus, each firm will continue to employ during its growth stage until it reaches the efficient scale or natural decay.However, other research has proved that it is difficult to measure small firm performance by employee growth. This is due to moderating variables such as outsourcing activities, productivity changes and replacement of employees with capital investments (Fitzsimmons, Steffens & Douglas 2005). When business grow in this the rapid changing modem world, many production and service functions has been contracted out (Bridge, O’Neill & Martin 2009). In other words, a business can grow without having any increase in employment rate.Several academicians argued that sales precede other yardsticks for business growth, as pointed out that it is the increase in sales that necessitates the increase in the number of employees hired (Davidsson, Achtenhagen & Naldi 2010). Sales revenue performance is used as small firm’s growth because it mi rrors the consumer’s demand for the product or services provided by the firm (Fitzsimmons, Steffens & Douglas 2005). In this world of constant returns, the consumer’s demand for the product or services determines the limit on the firm’s growth.Sales figures easily reflect both short-term and long-term changes in the firm, hence measuring the growth and performance. However, there are two reasons that deviate sales as business growth yardstick. Firstly, the typical downward sloping demand curve is not applicable in practice. Just as a habitual entrepreneur starts more than one business, a firm can also have product differentiation (Hart 2000). Hence, it is difficult to determine the demand and cost curves in imperfect competition market condition.Secondly, sales are not an accountable measure during first few stages of the business cycle. During the seed and the start-up stage, employment and assets may grow more extensively before any significant sale has been d one (Fitzsimmons, Steffens & Douglas 2005). In this context, assets are in the form tangible ‘fixed’ assets and intangible assets such as of entrepreneur’s knowledge asset, the reputation of the firm (Bridge, O’Neill & Martin 2009) and quantity of registered patents. Hence, business growth could not be measured by sales alone.Looking from another dimension, a firm’s profitability could be suggested as an important measure of growth for the simple reason that a firm is unable to sustain without profits. The difference between maximised sales and maximised profit is that the marginal revenue is zero when sales are maximised but the marginal revenue is positive when profits are maximised (Hart 2000). A firm’s growth on profitability can be considered in term of the net profit margins, return on assets (Fitzsimmons, Steffens & Douglas 2005) or return on equity (Durguner & Katchova 2009).High profit margins, return on assets and return on equity p rovide more confidence for shareholders and potential investors to invest in the firm, enhancing business growth. However, growth rates are highly volatile over duration of time and research has shown that there is no evidence of a relationship between growth and profitability (Fitzsimmons, Steffens & Douglas 2005). In accordance, many articles have reached a conclusion that financial measures alone are not sufficient as business growth and performance measure for small firms (Reijonen & Komppula 2007).This is due to the fact that, just as entrepreneurship, small business sector is hardly homogeneous, and not all of these businesses are operating in the same direction. Some research has even shown that not all small firms are even capable or willing to grow (Papadanki & Chami 2002). What is entrepreneurial success? The capability and willingness to grow of small firms are directly influenced by the business owners’ intention to grow and their self-perception of success.In oth er words, the growth of small business is not a self-evident phenomenon, but it is actually driven by the business owner’s motivations and intentions (Morrison, Breen & Ali 2003). Most business decisions are made by owners, and their own personal judgement will impact on the business growth orientation (Geneste & Weber 2011). Consequently, it can be considered that the role of the entrepreneur should be emphasized as the dominant factor of growth (Reijonen & Komppula 2007). An entrepreneur’s motivation for business growth has to be complemented by his or her willingness to grow and assume risks.The risks involved are such as willingness to delegate control functions to others and the uncertainty to produce more output. The researchers found that due to the risks, small business owners are reluctant to grow and perceives profit-maximisation as only one of the motives for business growth (Papadanki & Chami 2002). This argument draws down to the psychological theories of motivation. The McClelland’s theory of needs defined ‘need for achievement’ as â€Å"the drive to excel, to achieve in relation to a set of standards, and to strive to succeed† (Robbins, Judge, Millet & Boyle 2011).Hence, characteristics of the business owners are linked to the business growth aspirations. In other words, each entrepreneur has their own perception of success depending on their own standard for ‘need for achievement’. To understand the business growth aspirations deeper, the owner’s clusters of traits and behaviours which affect the way they engage in their business activities are examined. The characteristic of the firm owner can be divided into three broad categories, namely ‘life-style’, ‘comfort-zone’ and ‘growth’ (Bridge, O’Neill & Martin 2009).The ‘life-style’ owners are defined to be those who establish the business to provide them a level of income and ha ve no intention for business growth. Geneste & Weber (2011) has identified owners that are not keen to expand their business due to deliberate ‘life-style’ choice, such as the small business atmosphere that engenders comradeship and job satisfaction. The ‘comfort-zone’ owners establish the business and focus on the benefits it can provide for the comfort he or she wants in life and the business growth will be stagnant once the desired comfort level has been achieved.The ‘growth’ owners are the almost ideal business person who maximises the earning potential and continue to grow the business further for the future. Clearly again, the intrinsic motivation of the owner should be examined further in order to understand what entrepreneurial success is. There are many studies that have been conducted to explore an entrepreneur’s intrinsic motivation for his or her business. One piece of research conducted was to compare the start-up motivation s and growth intentions between African-Americans (titled as ‘black’ by the researchers) and Americans (titled as ‘white’ by the researchers).Edelmen, Brush, Manolova & Greene (2010) has conducted a research to investigate new venture among black and white nascent entrepreneurs. In their research, they have discovered three important findings related to business growth. Firstly, nascent entrepreneurs do not associate business establishment outcomes with business growth intention. Secondly, entrepreneurs are motivated to start ventures to fulfil a need for self-realisation. Lastly, it is found that whites are more strongly motivated by the desire for financial success while blacks had higher levels of personal self-confidence.Hypothetically, the findings of this research suggested that blacks inherited the ‘life-style’ motivations while the whites are ‘comfort-zone’ motivated. This research has proved that expected financial outcome s are not as important as noneconomic concern in determining the entrepreneur’s attitude towards growth. The entrepreneurial success is not related to the growth of the firm but for intrinsic satisfaction instead; hence small firm growth should not be the only measure for the entrepreneur’s success.In another piece of research, (Utsch, Rauch, Rothfufs & Frese 1999) has investigated the rapid emergence of entrepreneurs and small firms in East Germany. During the research, the role of personality traits has been clarified and the researchers found an encouraging convergence result in two areas, namely the need for achievement and need for autonomy. In other words, entrepreneurs with high need for autonomy will be more motivated to begin small-scale business ventures and will develop the business further only if they have high need for achievement as well.In parallel to that, Lee & Tai (2010) has conducted a research to investigate the motivators and success of small busi ness in Kazakhstan. Empirical evidence has suggested the entrepreneurs are motivated to achieve financial independence and also to obtain social recognition. This is due to the fact that entrepreneurial endeavours are considered as honourable and also an upgrade on social-status activities. This theory is shows that entrepreneurs in Kazakhstan are more aligned towards the ‘comfort-zone’ characteristics.The mentioned researchers have also concluded that the success of some small firm growth is contributed by the creativity and commitment of all the entrepreneurs. From these two pieces of research, it is further confirmed that entrepreneurs have their own perceptions of success but each individual has different intrinsic motivation to achieve his or her goal, albeit from different geographic locations. Another aspect to consider on perception of entrepreneurial success should be the gender of the owner. Research shows that there are differences across entrepreneur’ s gender on perceptions of success.Male and females entrepreneurs differ in the way they measure their extrinsic and intrinsic dimensions. Previous study has verified that male entrepreneurs tend to emphasize on quantitative measures and economic values while female entrepreneurs emphasize on qualitative measures and social values (Justo, Cruz, de Castro & Coduras 2006). Hypothetically, male entrepreneurs describe success in term of achieving goals while female entrepreneurs define success in terms of doing something fulfilling. The research has also iscovered that the motivation for business success is moderated by the parental status of the entrepreneur. Female entrepreneurs are more motivated venturing into self-employment if they have dependent children under their care and perceived success when they are able to fulfil the need of independence. This hypothesis has been confirmed by Ahmad (2011) when he conducted a research on female entrepreneurs in Kingdom of Saudi Arabia. In this piece of research, female entrepreneurship has proved to be influenced by the female entrepreneur wanting to spend more quality family time.For these female entrepreneurs, the perception of success was when the desire for autonomy, independence, self-fulfilment and wealth has been achieved. In short, the gender status of the entrepreneur significantly impact on the perceptions of entrepreneurial success where female entrepreneurs depict more on social values as success. Conclusion In conclusion, the dimensions of small firm growth and the perspectives of entrepreneurial success have been discussed to judge how true the aphorism of entrepreneurial success can only be judged by small firm growth.The different stages of business cycle have been identified and the growth of the business occurs in almost all the phases in the five stages of small firm growth in their own way. Growth is included in many aspects, such as growth of the idea, or the growing numbers of customers, or gene rating more returns from the business. Generally, the measurement of growth is mainly based on quantitative values such as employment rate, business sales and profitability among other yardsticks. However, research shows that small firm growth could not be measured on financial and economical terms only.The rate of employment becomes insignificant as the business can grow without hiring any new employees, while sales do not account for the first couple stages of the business cycle and there might be owners who deviate from the main product or service line. Research has also shown that there are no relationship between profitability and growth. Therefore, the entrepreneur’s perception of success should be moderated to measure small firm success. Three types of small firm owner’s characteristics has been identified, namely the ‘life-style’, ‘comfort-zone’ and ‘growth’.From the few pieces of research that has been examined, most of t he entrepreneurs are found to be ‘life-style’ and ‘comfort-zone’ and rarely the ideal ‘growth’ motivated characteristics. The gender of the entrepreneur will also affect the measuring manner of small firm growth success. Each attribute shows the willingness and capability of each owner to further grow their business. Hence, the entrepreneur’s intrinsic motivation plays a vital role in judging and predicting the small firm success.In this context, the intrinsic motivations are such as the need for achievement, autonomy and self-realisation are more important than business growth intentions. In a nutshell, it can be concluded that small firm growth can be a way to measure entrepreneurial success, but it should be based on the standard or level that the entrepreneur has placed emphasis on instead of strictly on monetary values only. REFERENCES Ahmad, SZ 2011, ‘Evidence of the characteristics of women entrepreneurs in the Kingdom of Sa udi Arabia’, International Journal of Gender and Entrepreneurship, vol. 3, no. 2, pp. 123-143.Bridge, S, O’Neill, K & Martin, F 2009, Understanding enterprise: entrepreneurship and small business, 3rd edn, Palgrave Macmillan, Hampshire. Davidsson, P, Achtenhagen, L & Naldi, L 2005, ‘Research on small firm growth: a review’, 35th EISB Conference, Barcelona. Durguner, S & Katchova, AL 2009, ‘Measure of small business financial performance from a lender and a borrower perspective’, The Business Review, vol. 13, no. 2, p. 24. Edelman, LF, Brush, CG, Manolova, TS & Greene, PG 2010, ‘Start-up motivations and growth intentions of minority nascent entrepreneurs’, Journal of Small Business Management, Vol. 8, no. 2, p. 174. Fitzsimmons, JR, Steffens, PR & Douglas, EJ 2005, ‘Growth and profitability in small and medium sized Australian firms’, AGSE Entrepreneurship Exchange, Melbourne. Geneste, L & Weber, P 2011, ‘Relatin g small business growth with success: some findings from the 2008 Western Australian small business benchmarks survey’, 8th AGSE International Entrepreneurship Research Exchange, Melbourne. Hart, PE 2000, ‘Theories of firms’ growth and the generation of jobs’, Review of Industrial Organization, vol. 17, no. 3, p. 229.Helms, MM & Renfrow TW 1994, ‘Expansionary process of the small business: a life cycle profile’, Management Decision, vol. 32, no. 9, p. 43. Hupalo, PI, TiE Islamabad, 2012, ‘Measuring success in small business and entrepreneurship’, TiE Islamabad, 12 October 2012,< https://islamabad. tie. org/article/24/measuring-success-small-business-and-entrepreneurship>. Justo, R, Cruz, C, de Castro, J & Coduras, A 2006, ‘Entrepreneurs’ perception of success: examining differences across gender and family status’, IE working paper, Instituto de Empresa Business School.Lee, JW & Tai SW 2010, ‘Motivators a nd inhibators of entrepreneurship and small business development in Kazakhstan’, World Journal of Entrepreneurship, Management and Sustainable Development, vol. 6, no, p. 61. Morrison, A, Breen, J & Ali, S 2003, ‘Small business growth: intention, ability and opportunity’, Journal of Small Business Management, vol. 41, no. 4, p. 417. Mukherjee, TK 1992, ‘Financing the three stages of the small business cycle: a survey’, Journal of Business and Entrepreneurship, vol. 4, no. 1, p. 33.Papadanki, E & Chami, B, Industry Canada, 2012, ‘Growth determinants of micro-business in Canada’, Government of Canada Publications Ottawa, ON, viewed 12 October 2012, . Reijonen, H & Komppula R 2007, ‘Perception of success and its effect on small firm performance’, Journal of Small Business and Enterprise Development, vol. 14, no. 4, pp. 689-701. Robbins, DK, Pantuosco, LJ, Parker, DF & Fuller, BK 2000, ‘An empirical assessment of contribut ion of small business employment to U.S. state economic performance’, Small Business Economics, vol. 15, no. 4, p. 293. Robbins, SP, Judge, TA, Millet, B & Boyle, M 2011, Organisational Behaviour, 6th end, Pearson Australia, French Forest, NSW. Roper, Stephen 2012, Entrepreneurship : a global perspective, Routledge, Abingdon, Oxon ; New York, NY. Utsch, A, Rauch, A, Rothfus,R & Frese, M 1999, ‘Who becomes a small scale entrepreneur in a post-socialist environment: on the differences between entrepreneurs and managers in East Germany’, Journal of Small Business Management, vol. 37, no. 3, p. 31.

Identifying Individual Preferences in the Airline Industry

Transportation services are becoming more common and broadly used in recent decade, in line with the advancement of technology. Generally, transportation services can be divided into three groups: water transportation, land transportation and air transportation (Gee, Choy, & Makens, 1984). Airline industry, which this essay focusing on, is one of the discoveries of newest innovations in the travel services sector. It has been developed so much in recent year to operate more effectively. Not only guarantee a safe journey to the destination place, the airline companies are now trying to create a competition in the market by providing the best services to the travellers and offering competitive prices (Hensher & Louviere, 1983). Those strategies are aimed to attract more consumers to travel by their airline companies. This essay will discuss the theories of consumer economics and their applications in the real consumer issues in airline industry, mainly on the factors that changing the consumer demand of airplane ticket, as well as the underlying reasons of why consumers prefer some particular airlines to the others. Furthermore, the behaviour of different types of consumers toward the choice of different airlines will also be discussed here. In observing those issues, this paper will focus on two airline companies: Singapore Airlines and Jetstar. The price data were obtained from a single route from Melbourne to Singapore. The core idea in analysing consumer behaviour in making choices in the economic activity, mainly in the airline industry, is because of their limited incomes and unlimited wants. Those then lead to trade-offs and opportunity costs. Consumers in the airline industry could be divided into two groups, which are business and pleasure travellers. Elasticity is the percentage change in one variable resulting from a 1-percent increase in another (Pindyck & Rubinfeld, 2009). When the price elasticity is greater than 1 in magnitude, we say that demand is price elastic because the percentage decline in quantity demanded is greater than the percentage increase in price. If the price is less than 1 in magnitude, the demand is said to be price inelastic. Graph 1. Elastic and inelastic demand (Inelastic demand) (Elastic demand) In this case, elastic demand of airline industry is exceptionally unstable because it depends on the market conditions such as inflation, terrorists attack and price oil. In airline industry, price elasticity demand is considered both elastic and inelastic (Yahoo Voices, 2008). An elastic demand is in relation travel for pleasure. Pleasure travellers are extremely sensitive to the price of the travel. An inelastic demand is in relation for business travel. Business travels have little effect for increase in price of the travel. Income elasticity of demand measures the degree of responsiveness of demand of a good to a change in consumers’ income. It has equation of : EI=[ΔQ/Q]/[ ΔI/I]=[I/Q]*[ ΔQ/ ΔI]. Airplane ticket is normal good as it has a positive income elasticity, which means when consumers’ income increase the consumption of ticket will increase as well. Cross elasticity of demand measures the degree of responsiveness of demand of one good to a change in the price of another good. It is shown in the equation: EQ1P2 = [ΔQ1/Q1] / [ΔP2/P2] = [P2/Q2]*[ΔQ1/ ΔP2]. If airplane ticket and other consumption (i.e. food and cloths) are considered as a group, there will be a positive cross-price elasticity, which tells us that if the price of one good (other consumption or ticket) goes up, the demand for the other good goes up as well. Consumer behaviour analysis attempts to understand the consumers’ allocation of incomes among different goods and services to maximize their well-being. It consist of three distinct aspects: consumer preferences, describing the reasons why people might prefer one good to another; budget constraints, reflecting consumers’ limited incomes that restrict the quantities of goods they can buy; and consumer choices, which are the combination of the consumer preferences and budgets constraints (Pindyck & Rubinfeld, 2009). There are some basic assumptions made in observing consumer preferences in the airline industry. First, preferences are assumed to be complete. Complete means that consumers are able to compare and rank all possible market baskets. However, this assumption ignores costs. Second, preferences are transitive or consistent. And third, â€Å"more is better than less† since goods are assumed to be desirable. Indifference curve represents all combinations of market baskets which provide consumer with same level of satisfaction (Pindyck & Rubinfeld, 2009). Indifference curve and utility functions (set of indifference curves) are used to analyse the consumer behaviour and preferences in choosing market baskets, in which relate to consumer demand (Gould, 1973). Higher indifference curve is more preferable to the lower one because it represents higher welfare (Telhado, 2007). Moreover, indifference curves cannot intersect and the slope of each point in the indifference curve represents marginal rate of substitution (MRS), which is the maximum amount of a good that consumer is willing to give up to obtain one additional unit of another good. Indifference curves of consumers in the airline industry are assumed to be downward sloping and bowed-inward, reflecting diminishing MRS, since the demand of airplane tickets and comparable goods are both desirable. The shape of the indifference curves is different among group of consumers. Indifference curves of the first group of consumer, business travellers, are steeper than pleasure travellers. Graph 1 below shows that the business travellers’ group is willing to trade more of other consumption (a) to exchange it with an airplane ticket (b), since they need to directly travel to other place establishing business transactions. Graph 2. Indifference map for business travellers While in the graph 2, pleasure travellers is unwillingly trade more of the other consumptions in order to purchase a unit of airplane ticket (a < b). It is because they travel to seek pleasure, not urgently need to be done directly. Thus, they are more flexible in the decision making process of which airline company they want to travel with and the time of travel. Graph 3. Indifference map for pleasure travellers Along with indifference curve, there is budget constraints which restraint consumer’s consumptions due to limited incomes (Mary, 2007). Assume that the budget lines for business and pleasure travellers are equal which can be seen from graph 3 and 4 below; the steeper indifference curves for business travellers show their optimal choices between purchasing airplane tickets and other goods. Business travellers seem to purchase more airplane tickets rather than other consumptions because they want to give up more of other consumptions to obtain an additional airplane ticket. Graph 4. Indifference map and budget constraints for business travellers In contrast, for pleasure travellers, the flatter indifference curves will lead them to purchase other consumptions rather than allocating a large portion of income in purchasing airplane tickets. The tangent between indifference curve and budget constraint will be the point of maximum well-being which can be achieved. Area below the optimal point shows that the consumers are not maximising their consumption. Whilst the area above that point means the consumers do not have enough income (budget) to achieve that consumption level. Graph 5. Indifference curve for pleasure travellers In general, when there is a change in consumer’s income, there will be a parallel shift in the budget line, either downward or upward. As shown in graph below, initially, the utility-maximizing consumption choice is at A, at which point he buys X1 units of airplane ticket and Y1 units of other kinds of good. If his income increases, his budget line will shift outward, allowing him to attain the higher utility level associated with indifference curve U2 and then U3. His optimal consumption choice is at B (and then D) now. At this time, the consumer can purchase larger units of tickets (from X1 to X2 to X3). It can be seen in the income-consumption curve that the slope is upward, because as income increase, the consumption of both airplane ticket and other consumption increase. Graph 6. The effect of a change in income level On the other hand, when there is a change in product’s price and income level held constant, there will be an intercept rotation on the budget line. Recent condition in the airline industry is many companies try to attract more consumers to purchase the airline tickets from them by cutting the airfares. This strategy increases the competition level among the airline industry. The reduction in price of the air fares will result in outward rotation in the budget line on the ‘x’ axis, which represents airplane ticket. People can now purchase more airplane tickets due to lower price, representing the increase in consumers’ welfare or utility level. It is associated by the movement of indifference curve from U1 to U3 by selecting point D. At this time, consumption of ticket will increase from X1 to X3. Moreover, the slope of the second budget constraint is now decreasing, represents lower opportunity cost of obtaining a unit of airplane ticket. Graph 7. The effect of the decrease in price level In most cases, consumers would like to buy more airplane tickets as their income increases, but in some cases, the quantity demanded falls as income increases, the income elasticity of demand is negative. As shown in graph below, for relatively low levels of income (between point A and B), both Singapore Airlines and Jetstar flights are normal goods. However, as income rises, some consumers tend to buy less Jetstar tickets and more Singapore Airlines tickets as Singapore airlines has better service, food supply and in-flight entertainment system. At this time Jetstar has become an inferior good, the income-consumption curve bends backward from point B to C, which means its consumption has fallen when income has increased. Graph 8. Jetstar becomes an inferior good as income increases Even though Jetstar has been said as inferior good in some cases, in general, airline ticket is assumed as normal good. Refer to that, a decrease in the price of airline tickets due to the market competition has both income and substitution effect. As shown in the graph below, the consumer is initially at A, on budget line RS. When the price of ticket falls, consumption increases by A1A2 as the consumer move to B. Keeping real income constant, the substitution effect A1E can be got when the price of ticket falls, associated with a move from A to D. If keeping relative price constant but increasing purchasing power, the income effect EA2 can be got, associated with a move from D to B. As airplane ticket is normal good, the income effect EA2 is positive. Therefore, the total effect of a change in ticket price is equal to the sum of the substitution effect and income effect. Graph 9. Total effect of a change in price After discussing the demand curve for individual consumer, market demand curve for airplane ticket will be shown now. It can be derived as the sum of the individual demand curve of all consumers in the market, as stated previously. As shown in graph below, the market demand curve is also slope downward as all the individual demand curves slope downward. However, the market demand curve is not a straight line. When more people choose to travel by airplane, the market demand curve will shift to the right. In addition, if most consumers in the market earn more income, as a result, their increasing demand for airplane ticket will also shift the market curve to the right. If the economic crisis breaks out as what happened several years ago, many people lose their job and the income decreased. Thus, the market demand curve for airplane ticket will shift to the left. Graph 10. The market demand curve for airplane ticket From the actual rates, Singapore Airlines has the higher average price than Jetstar. In the same time, there is a survey about the level of satisfactions of international airlines shown by the graph below. From the graph, it illustrates that Singapore Airlines has the highest satisfaction level figure. From the risk and uncertainty point of view, Singapore Airlines provides superior service and it maintains an eye on rivals’ prices and ensures it stays competitive among other airline companies. The airline cancellations and delays usually provided with explanations and apologies. This airline is also providing advantage on frequent flyer consumers such as â€Å"priority passengers’ service†. This service is suitable for business travellers as it will give them advantage in booking urgently needed flights for important meetings. This airline is also suitable for those high-income pleasure travellers as it offers great entertainment and amusement, such as popular movies with multiple language options, games and dozens of audio channels. In addition, Singapore Airlines catering supply is trying to provide varieties of meals menu which match the likely passengers’ needs. For example, there will be Indian and western food provided for subcontinent flights. Moreover, Singapore Airlines has a modern fleet and the aircrafts have been maintained with the highest standards. Thus, the cost of flights is higher which result in the higher airfares, however, safely of this airline is guaranteed. Comparing to Singapore Airlines, Jetstar offers lower price to the consumers. Their food, beverages and entertainment standard are much lower than Singapore Airlines’. Jetstar is known for having many complaints from its passengers in term of its services, such as frequent delays and cancellations of flight. Those seem to be serious problems for business travellers, as time efficiency is the main factor. However, Jetstar’s network is constantly expanding by opening flights to some new locations in Asia. Thus, Jetstar is more suitable for pleasure travellers which have shorter travel distance and not much concern about the services provided on board. As the theory of equal marginal principle states that â€Å"the utility is maximized when the consumer has equalized the marginal utility per dollar of expenditure across all goods† (Gordon, 2007), the business travellers who are not price prioritize will choose to travel with Singapore Airlines since they prefer in optimal satisfaction. However, for the pleasure travellers that prioritize the price factor will choose to travel with Jetstar which provide low price for consumers rather than best satisfaction. Graph 11. Satisfactions with International Airlines 2009-2010 Even with a high level of satisfaction, Singapore Airline has experienced a decline in market share over the last five years, as shown in Graph 13. Low-cost airlines such as Jetstar have contributed to the lack of growth for more premium airlines. Additionally, Peter von Moltke stated that â€Å"the low cost sector is a major influence in sustaining a steady growth trajectory for the global aviation industry.† (PR Newswire, 2011). Graph 12. Market share of Top 10 Airlines in Australia (Department of Infrastructure and Transport, 2012) So far, it has assumed that people’s demands for airplane ticket are individualized. That enables us to obtain the market demand curve simply by summing individuals’ demands (Kris, 2007). In real-life, however, one person’s demand always depends on other people’s demand. That is a network externality, which can be positive or negative. It is a good chance for airline companies to attract more passengers by using bandwagon effect of a positive externality. As shown in the graph below, when consumers believe more people have purchased the product, the demand curve shifts further to the right (D1 to D5). The market demand curve is found by joining the points on the individual demand curves, which can be seen that it is relatively more elastic. Suppose the ticket price falls from P1 to P2. Without bandwagon effect, the quantity demanded will increase from Q2 to Q2’. However, as more passengers choose to fly with Jetstar or Singapore Airlines and think it is worth to be the first-flying choice as it is trustworthy, the bandwagon effect increases quantity demanded further to D4. Therefore, airline companies use bandwagon effect to increase the response of demand in relevance with price change. To obtain this effect, the airline companies could target its potential segment and use advertisement to build up their brand image and reputation among the market. For example, Singapore Airlines could use ‘comfortable, quick and always on-time’ image to attract its business travellers. And for Jetstar, the image of cheap and flexible could help the company to obtain its bandwagon effect in pleasure travellers’ market. Graph 13. Bandwagon effect To conclude, the consumers’ demand of airplane ticket is affected by their income, ticket price, and the demand elasticity. Business travellers prefer to travel with Singapore Airlines, even with a higher airfare. They concern more on punctuality and the service provided and their price elasticity of demand is low. In contrast, pleasure travellers are less concerned with the quality of service provided, focusing on reaching their destination with the lowest cost. Their price elasticity of demand is high, thus, Jetstar is preferred in this case. In the intense market competition, Singapore airlines and Jetstar could use the bandwagon effect to attract more passengers by building up their own brand image.